TL;DR
- The recent popularity of memecoins has displaced Cardano from the top 10 cryptocurrencies by market cap.
- Dogecoin and Shiba Inu are leading this new memecoin boom, reaching high valuations and transaction volumes.
- New memecoins such as Pepe and Dogwifhat have also posted significant gains, reflecting growing interest in these assets.
The recent memecoin mania has had a significant impact on the cryptocurrency market, with Cardano (ADA) being one of the most notable affected.
Cardano, which was previously among the top ten cryptocurrencies by market capitalization, has been displaced by Shiba Inu (SHIB), which now ranks 11th with a market capitalization of $15,987 million.
Meanwhile, Dogecoin (DOGE) maintains a strong position in eighth place with a capitalization of $23,849 million.
This phenomenon is not new, as Dogecoin has been a constant presence in the cryptocurrency market for several years.
However, the emergence of new memecoins such as Shiba Inu, Pepe (PEPE), Dogwifhat (WIF), and Bonk (BONK) has revitalized this segment of the market, attracting both experienced and novice investors.
These assets have shown impressive returns in short periods according to data from CoinMarketCap.
For example, Pepe is up 13.88% in the last week, while Dogwifhat has seen an increase of 29.59% in the same period.
Cardano, on the other hand, has seen a significant drop in value.
It is currently trading at $0.45, a decline of over 80% from its all-time high of over $3.10 during the 2020-21 bull cycle.
Unlike Bitcoin and other altcoins that have recovered most of their losses and some have set new all-time highs, Cardano appears to be stuck in a tight price range along with Ripple (XRP).
The rise of new memecoin
The rise of memecoins has been mainly driven by assets that are barely a year old.
Pepe, Dogwifhat, and Book of Meme (BOME) are examples of memecoins that have achieved double-digit gains in a short time.
This growth has been fueled by a combination of factors, including the enthusiasm of online communities, support from influential figures, and widespread speculation in the cryptocurrency market.
Dogecoin, the original memecoin, and Shiba Inu, the favorite of the last bull run, have also seen significant rallies this cycle, although their gains have not been as spectacular as those of the new memecoins.
Despite this, DOGE and SHIB remain major players in the cryptocurrency space, maintaining their relevance among investors.
As Bitcoin and most altcoins show sideways price movement with many in the red, memecoins have not only survived, but thrived.
Currently, six of the ten biggest gainers in the last 24 hours are memecoins, and the weekly charts show a similar picture.
This indicates a shift in investor interest towards these volatile and high-risk assets.
