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The $35.2 billion memecoin market is undergoing a harsh reality check, facing extreme differentiation and short-term plunges.
According to crypto media outlet U.Today on September 29 (local time), the total market capitalization of the memecoin market was approximately $35.2 billion, a 4.2% decrease from the previous day. This drop was more than double the 1.7% decline seen in the overall cryptocurrency market during the same period. Market analysts diagnose that the memecoin sector has failed to form a unified trend, with funds rapidly shifting between themes. Large-cap memecoins are drifting along with the broader market, while smaller ones are trapped in individual market conditions, experiencing surges and crashes within hours.
Tokens that showed short-term surges are already undergoing steep corrections amid extremely thin liquidity. Solana-based Baby Cali surged by 11,400% to a market capitalization of $8.9 million but recently plunged by 17% in the last hour. Shareholder Cat (SHCAT), issued on the Robinhood chain, also surged by approximately 7,300% to form a market capitalization of $2.6 million before plummeting 37% from its peak. The liquidity for these tokens is merely between $289,000 and $576,000, revealing a structure extremely vulnerable to selling pressure.
Meanwhile, existing top-tier tokens that had been leading the market have all turned bearish. Pudgy Penguins (PENGU), which had surged 38% at the beginning of the week due to the Korea Blockchain Week buzz, along with Bonk (BONK) and dogwifhat (WIF), showed daily declines of between 2% and 6%. Bitcoin Runes-based DOG plummeted by 13.95%, and SPX6900 (SPX) and Non-Playable Coin (NPC) also recorded double-digit declines, falling by 11.60% and 11.35% respectively.
Market experts warned that with the broad memecoin rally missing, 100x returns based on thin liquidity are closer to an illusion that cannot be cashed out. As the market only rewards short-term positive news and inflicts immediate losses on late entrants, the recovery of Bitcoin (BTC) to $85,000 will be a key indicator to determine the overall direction of virtual assets, according to analysis.
[Article Key Summary]
-The $35.2 billion memecoin market capitalization decreased by 4.2% in one day, showing a larger drop than the overall market.
-New small-cap coins that surged by thousands of percent showed extreme volatility, plummeting up to 37% in just one hour due to thin liquidity.
-With major tokens like PENGU, WIF, and DOG falling by up to 14%, Bitcoin's recapture of $85,000 is considered crucial.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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