By lutch 
The memecoin market experienced a sharp decline in December 2024, losing over $40 billion in market capitalization. After peaking at $137 billion early in the month, the sector’s value plummeted to a low of $92 billion by December 23. This significant drop indicates a cooling off from the intense speculative fervor that had driven memecoin prices earlier in the year.
Pepe (PEPE), one of the leading memecoins, was not immune to the downturn, although it managed an 18x growth rate from the start of 2024. However, even with its listing on major exchanges like Binance.US, other memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF) saw substantial losses, with DOGE and SHIB dropping by 5.6% and 10.4% respectively within 24 hours at one point.
The market’s volatility was exacerbated by massive liquidations, with over $1.7 billion in leveraged positions wiped out, particularly affecting memecoins. This event marks one of the largest liquidations in the crypto market since 2021, signaling a significant shift in investor sentiment towards these speculative assets.
This downturn in memecoins’ market performance underscores the high-risk nature of these assets and suggests a potential recalibration in investor interest or strategy within the broader cryptocurrency landscape.
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