BASE and SOL memecoin market prices decreased by 19% and 12% in 24 hours.
The total market capitalization of memecoins on Solana and Coinbase's Ethereum Layer-2 Base has seen significant declines over the past 24 hours, falling 12% and 19% on the two networks, respectively.
The sell-off of Memecoin arrived around the same time as the sharp decline in the price of Bitcoin (BTC), with the cryptocurrency falling 4.94% in the last 24 hours, CoinMarketCap data.
One crypto analyst said it's normal for memecoins to drop when the price of BTC drops, but another analyst attributed the bearish trend to simply a joke running the streets.
“I guess it stopped being funny,” Matty Greenspan, a crypto analyst and founder of Quantum Economics, told Cointelegraph.
He added: “It's very fitting that it peaks on April Fool's Day.” There is so much value in memecoins, it has to run out at some point, it can't go on forever.
Solana's memecoin market cap is $8.29 billion, down 12 percent in the past 24 hours, according to CoinGecko.
The leading Solana-based meme token in total value – dogwifhat (WIF) – saw a 9% drop in market value on the day, resulting in a loss of $3.9 billion. Notably, WIF still holds about half of the total memecoin market share on Solana.
Among eight major crypto exchanges, YF currently accounts for a total of $484 million in open interest (OI). However, according to CoinGlass data, $1.89 million in short positions and $872,460 in long positions, including $2.76 million in leveraged positions, were rejected in the last 24 hours.
Base's total market capitalization fell 19 percent to $1.47 billion in 24 hours. The new native token of the Layer 3 network, dubbed “Degen” (DEGEN) on Base, was the hardest hit, seeing its market cap drop 26.14% to $436.5 million.
The total value of the crypto market – the value of all assets in the entire crypto sector – also increased by 6.14% in the last 24 hours, currently reaching $2.45 trillion according to CoinMarketCap data.
Greenspan While Bitcoin is finding strong support levels, memecoins are seeing volatility beyond critical key price points.
Greenspan added: “Bitcoin's recovery is minimal right now, memecoins are being slaughtered.
Over the past day, Bitcoin has decreased by 4.94% to trade at $65,910. Meanwhile, the price of WIF fell 10.3 percent to $3.67.
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Greenspan is the leading link in this broader crypto market that commands Bitcoin above other cryptocurrencies.
“It has a directional correlation, when bitcoin goes up more, and when bitcoin goes down they go down more than bitcoin. This is going to take a very long time,” Greenspan says.
Charles Edwards, founder of Quantitative Bitcoin and Digital Asset Fund, told Cointelegraph that it is common to double down on the effects of the Bitcoin crash.
“Altcoins like this are high beta on Bitcoin,” Edwards told Cointelegraph. “They've been driving prices for Solana and Base recently:
“There has been a lot of hype for the SOL and Base ecosystems in general, but I would argue that they have much less tangible value than BTC and Ethereum.”
Crypto analyst and host of the Crypto Banter podcast, Ran Nunner, wrote in an April 2nd post that the memecoin market is approaching an oversaturation point.
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