- Meme coins have not been left behind in the ongoing crypto sell-off.
- Dogelon Mars, Floki Inu, and Baby Doge Coin have all plummeted.
Meme coins are sinking as interest in cryptocurrencies plunge. Dogelon Mars (ELON) price crashed to a low of $0.0000003, the lowest point since January 23. It has plunged by more than 40% below the highest level in March.
Shiba Inu, one of the most popular meme coins has also plummeted, despite the growing enthusiasm about the Shibarium launch. SHIB price dropped to a low of $0.000010, which was also about 31% below the year-to-date high.
Dogecoin price crashed to the key support level at $0.073, ~25% below the highest point this year. Other meme coins like Tamadoge, Floki Inu, and Bone ShibaSwap have also retreated.
Read more: How to buy Dogecoin.
Fed and crypto concerns
It is worth noting that other popular cryptocurrencies have also plummeted, with Bitcoin crashing from $25,200 to $22,000. The total market cap of all cryptocurrencies has declined below $1 trillion for the first time in months.
The main reason for the ongoing meme coin sell-off is the fact that the Federal Reserve is poised to continue hiking interest rates in the coming months. This is based on the recent economic data from the United States.
The consumer price index (CPI) has remained above 6% while the unemployment rate plunged to 3.4%. Retail sales have continued rising, meaning that the economy is doing modestly well. Historically, high-risk assets tend to do underperform in periods when the Federal Reserve is tightening. In this period, investors tend to move to the safety of the US dollar.
In a statement on Tuesday, Jerome Powell, the head of the Federal Reserve, said that interest rates will likely remain higher than previously expected.
Lack of a utility
The other reason why meme coins like Dogelon Mars, Floki Inu, and Shiba Inu are falling is the ongoing slow collapse of Silvergate Capital. Silvergate is a company that provides crypto banking services to companies in the sector. It warned last week that it may struggle to continue operating as a going concern and even closed its key crypto transfer services.
Meanwhile, there are concerns about the lack of utility of these meme coins. While some of them like Shiba Inu and Baby Dogecoin have started expanding their ecosystems, the reality is that this use is still modest. Instead, most people who own them do so for speculative reasons.
