According to a post by Lookonchain, the top 10 memecoins of the crypto space have witnessed an average decline of 63.73% from their highest values over the past year.
Notable declines include Dogecoin (DOGE) dropping by 57.93%, Shiba Inu (SHIB) by 70.86%, and WIF, a Solana-based meme coin, which saw a sharp fall of 70.93% from its peak on March 31, 2024.
Earlier this year, WIF captured the crypto community’s attention with a massive rally, reaching a peak of $4.83. However, since that high, the coin has lost over 70% of its value, reflecting the volatile nature of memecoins.
Even while the memecoin market has drawn a lot of interest from investors, questions regarding its long-term viability are rising. Meme stocks like AMC and GameStop are comparable to memecoins, which are frequently made to be light-hearted and enjoyable.
Are Memecoins Sustainable for the Long Term?
Memecoins are popular, but as per the industry, people say there’s a good case to be made that they are not the greatest investment vehicles to fuel a sustained bull run in the cryptocurrency space.
Industry experts advise new investors to concentrate on more sustainable assets like real-world assets (RWAs) and artificial intelligence (AI) for the long-term viability of the market.
Compared to memecoins, which are speculative and have a limited lifespan, these sectors are thought to have greater potential for long-term growth.
Fear of missing out (FOMO) and the desire for rapid profits have sparked the memecoin frenzy, which has resulted in sharp price increases. Memecoins witnessed an average price gain of nearly 1,300% in the first quarter of 2024, making them 4.6 times more profitable than RWAs, the second most profitable tale.
This growth might not be sustainable, though. The future of the blockchain sector most certainly rests on longer-term, more reliable investments rather than the ephemeral profits of memecoins.
Around 97% of the Memecoins Ever Created are Dead
According to research published in August, over 2,000 memecoins disappear each month, accounting for about 97% of all memecoins ever issued. This underscores the vulnerability of the memecoin market. This pattern highlights the dangers of investing in memecoins and begs the question of what part these coins will play in the development of the cryptocurrency industry.
The crypto space has been quite volatile this year and memecoins did not lag. Therefore to sustain the market and to be relevant the memecoins have to come up with more reliability, use cases and points on being relevant in the market.