The recent crypto crash hit memecoins hard, culminating with a 9% drop in total market capitalization from Aug. 14 to Aug. 21. During the same period, Pepecoin (PEPE), (SHIB) and ApeCoin (APE) saw a 25% decline. The big question is whether this trend will affect the wider market, signaling a broader bear market, or simply reflects lagging performance of memecoins.

Total crypto market cap (blue) vs. PEPE/USDT (green), SHIB/USDT (red), APE/USDT (orange), August 2023. Source: TradingView

Memecoins like (DOGE) burst onto the scene, driven by viral memes and community enthusiasm. However, their appeal faded due to a mix of factors. These coins rely on media hype and online communities for attention, yet they lack value beyond their meme origins. Their speculative nature leads to rapid price changes and volatility.

Total crypto market cap (blue) vs. PEPE/USDT (green), SHIB/USDT (red), APE/USDT (orange), June 2023. Source: TradingView
Total crypto market cap (blue) vs. FLOKI/USDT (green), SHIB/USDT (red), APE/USDT (orange), March 2023. Source: TradingView
Cryptocurrency market total capitalization, USD. Source: TradingView