Meme Coin Market Correction

The meme coin sector is experiencing a notable correction, diverging from the relatively stable performance of the broader crypto market. Among the affected, Solana-based Dogwifhat (WIF) witnessed a significant drop, retreating from its March 31st all-time high, showcasing a 15.9% decline in just a day and a 10.4% decrease over the week.

This downturn isn’t isolated to Dogwifhat alone; other dog-themed cryptocurrencies, including Dogecoin (DOGE), Floki Inu (FLOKI), and BONK, have also seen their values diminish over the past 24 hours. Interestingly, Shiba Inu (SHIB) managed to maintain its position without further losses for the day, albeit it too suffered a 13.3% reduction over the week.

Beyond the canine-themed tokens, other meme-based assets like PEPE and Solana’s Book of Meme (BOME) have also faced downturns, with BOME experiencing a 12.9% fall. This retracement underscores a broader trend among meme coins, which have collectively retracted by 18.5% over the last week, amidst Bitcoin’s dip to $65,000.

However, this recent pullback occurs in the wake of significant rallies. Dogecoin notably breached the $0.20 mark for the first time since 2021, and Dogwifhat reached its peak at $4.83 on March 31st, illustrating the volatile yet dynamic nature of the meme coin asset class.

Meme coins have thrived in sync with Bitcoin‘s price ascension this year, with Solana emerging as a focal point for trading activity. March saw Solana’s decentralized exchanges (DEXs) hitting record trading volumes, fueled by meme coins like Dogwifhat. Similarly, Ethereum’s scaling network Base experienced a surge in trading volumes, propelled by a meme coin frenzy, accumulating $1.22 billion in trading over a single weekend.