Simply putSo far this month, the price of PEPE has fallen by 60%.The memecoin craze seems to be weakening
Simply put
- So far this month, the price of PEPE has fallen by 60%.
- The memecoin craze seems to be weakening.
- The average transaction cost of BTC has decreased to $3.76
As the prices of popular currencies such as PEPE fall, the memecoin craze seems to be weakening. This is good news for Bitcoin users, but it may not be for investors as the crypto market continues to adjust.
The memecoin foundry frenzy that blocked the Bitcoin network last week seems to have weakened. In addition, the highly anticipated PEPEmecoin with a frog theme has fallen by 60% since its peak at the beginning of this month.
On May 5th, PEPE soared from obscurity to a historic high of $0.00000431. However, it has since fallen by over 60% to the current price of $0.00000172.
Memecoin fell 4.5% on the same day, while the market rose 1.7%. This indicates that the memecoin craze has temporarily come to an end.
The market value of this token reached a peak of $1.6 billion before falling back to the current level of approximately $720 million.
Memecoin Speculative Decline
Speculators often sell some of their BTC and ETH holdings in exchange for high-risk memes. According to Bloomberg, this seems to be a recent occurrence, as the top two have fallen after several months of gains.
Kyle Doane, a trader at Arca, a digital asset management company, commented on PEPE, saying, "Ultimately, this is a lottery ticket," and then added, "This type of transaction is basically a centralized casino
The memecoin craze may indicate a peak in the local market, followed by months of decline in Bitcoin and its similar products. A similar situation occurred in May 2021, when Dogcoin led the memecoin craze.
Joe Rotonda, the head of law enforcement at the Texas Securities Commission, said,
When the buzz disappears and the hype dissipates, value often plummets, and investors may suffer significant losses
Due to liquidity issues, there may also be issues with cashing out memecoins. However, the daily trading volume of PEPE is still approximately $360 million.
Bitcoin fees fall back
The Bitcoin network has now taken a break, as the craze for meme coinage is fading. With the stabilization of transaction costs, the number of unconfirmed transactions to be processed in the Memory pool has dropped to 242837.
According to BitInfoCharts data, daily trading volume remains high, exceeding 600000. Fortunately, the average transaction cost has fallen back to around $3.76.
On May 8th, due to the surge in demand for blockspace during the peak of the BRC-20 and serial number inscriptions craze, fees surged to over $30.
During the Asian trading session on Monday morning, BTC prices rose 1.4% to $27191 on the same day.
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