July saw some popular Meme coins, Dogecoin, Pepe, Dogwifhat, and Shiba Inu, experience some major price decline.
The value of meme currencies, including Dogecoin (DOGE) and Pepe (PEPE), has experienced a substantial decline in the past 24 hours. Both tokens have experienced losses of over 2% and 4% of their respective values, as indicated by data from CoinMarketCap.
The decline follows an initial increase in meme coin prices in response to the news of Donald Trump’s near-death experience in Pennsylvania last Saturday. The news initially stimulated the crypto market, as Bitcoin (BTC) and Ethereum (ETH) both experienced substantial gains.
Prompt Market Response
The crypto industry responded favorably to Trump’s incident. Bitcoin, trading at approximately $58,000, experienced a significant increase to nearly $67,000. Similarly, Ethereum experienced a substantial increase from its July low of $3,000 to roughly $3,400.
Nevertheless, these gains were reversed by Thursday, and the prices of DOGE and PEPE followed suit, declining in tandem with BTC and ETH. Millions of dollars were lost in market value in the meme coin sector on Friday as the trend persisted.
DOGE experienced a more than 50% decline in value from July 1 to 15, while PEPE experienced a 36% decline. The value of other meme coins, such as Dogwifhat (WIF) and Shiba Inu (SHIB), experienced a significant decrease during the same period.
Nevertheless, confident investors perceive this substantial decline as an advantageous purchasing opportunity to augment their portfolios. Whales reportedly accumulated 16 million DOGE in a single day on July 18 in anticipation of imminent benefits.
In May, blockchain analyst Ali Martinez disclosed on X (formerly Twitter) that whales had acquired 700 million DOGE, equivalent to approximately $12 million, within three days. This magnitude of market acquisition was last observed in May.
The analyst stated that the tokens were acquired in tranches comprising over 200 million DOGE.
Market Forecasts and Whale Activity
The whales’ actions were consistent with the predictions of blockchain trading company QCP Capital, which stated in May that whales are transitioning from utility tokens to memes.
Investors have redirected their focus from digital assets such as Solana (SOL), Ripple’s XRP, and Cardano’s ADA to “higher beta meme tokens” like DOGE, SHIB, and PEPE, as per the firm.
In recent days, Shiba Inu and Pepe have experienced double-digit gains, and these meme currencies are “ranking in the top 10 for open interest,” according to QCP Capital.
The meme coin market has been known to generate wealth for individuals despite its lack of utility. Traders have achieved millionaire status by investing in memes, as evidenced by several incidents in the crypto industry.
A crypto trader generated $8 million in pure profits earlier this week by purchasing MAGA (TRUMP). The news of Trump’s attack on July 13 caused the caricature to awry. Notably, the trader used only 540,700 USDT to withdraw $8 million.