The combined market cap of meme coins has dropped 41% in the past 30 days as macroeconomic headwinds have evaporated most of the gains that these tokens experienced after Donald Trump’s victory in the November Presidential election.
The Bybit hack could have been the latest negative catalyst that prompted a decline in meme coins’ valuation as the North Korean hacking collective Lazarus Group compromised a cold wallet containing $1.4 billion worth of ETH tokens under Bybit’s custody.
Selling pressure increased progressively during the weekend and resulted in one of the most severe monthly drops that meme coins have experienced lately.
In the past 24 hours alone, these tokens have faced a 6.4% retreat. Their combined market cap currently stands at $54.1 billion resulting in a 57.5% retreat from the category’s December peak of $127 billion.
Market sentiment has changed drastically since last Friday as the Fear and Greed Index has swung to “Extreme Fear” and is recording its lowest reading since it was launched in June 2023 by CoinMarketCap.
DOGE Books Worst Monthly Decline of the Past Four Years
Dogecoin (DOGE), the dominant force in the meme coin space with a market cap of $28.7 billion that accounts for half of the segment’s aggregated value, has experienced its fair share of losses as it has shed 38.8% since the year started.
The monthly chart shows that this has been the worst month for DOGE thus far with a 42% drop since the token rose to popularity in January 2021. Its 25% decline from last December ranks second, emphasizing the strength of the selling spree that has taken place since Donald Trump ascended to power.
This has also been one of the worst weeks on record for DOGE, with an accumulated drop of 20.7%.
Meanwhile, both the weekly and daily charts show that momentum readings favor a bearish outlook for the top meme coin.
First, a critical support area at $0.2050 was broken yesterday. This increases the odds that DOGE could drop swiftly to $0.1400, meaning a 31.7% downside risk from current levels.
The Relative Strength Index (RSI) sent a sell signal on Friday 21 – the day of the hack – while the MACD’s histogram shows steadily increasing negative momentum readings.
All of these indicators are pointing to further pain down the road for DOGE and, subsequently, for the entire meme coin category.
In the meantime, investors are turning to the best crypto ICOs to diversify and strengthen their portfolios despite these harsh market conditions. Solaxy ($SOLX), a layer-two Solana scaling solution, stands out as one of the best candidates to break the charts in 2025.
Solaxy ($SOLX) Raises Nearly $24M with Only 5 Hours Until Its Next Price Increase
The launch of Official Trump (TRUMP) in late January evidenced the need for a layer-two scaling protocol that can solve Solana’s congestion issues.
The presale event of Solaxy ($SOLX) was launched in December to raise the necessary resources to deploy this solution. Thus far, the project has raised $23.9 million and the developing team has provided encouraging updates about their progress in launching Solaxy’s rollup.
This side-chain bundles transactions offline to alleviate the Solana mainnet’s congestion. As meme coins continue to rise in popularity and Solana’s DeFi ecosystem keeps expanding, Solaxy will likely become a critical partner in the network’s bid to overthrow Ethereum.
$SOLX is the native asset of this layer-two chain. Early buyers who take advantage of its discounted price of $0.001648 will reap the highest returns once the presale event ends and the token is listed on exchanges.
Apart from the upside potential that $SOLX offers, token holders can also stake their assets and earn an APY of 170%.
To buy $SOLX, head to the Solaxy website and connect your wallet. You can either swap SOL, USDT, or ETH tokens or use a bank card to make your investment.
