Summary
This is an excerpt from CoinDesk newsletter ‘Daybook.’ Sign up here, if you haven’t already.
The crypto market continues to mature with growing institutional participation, and memecoins are paying the price.
The combined market capitalization of DOGE$0.06912 and shiba inu (SHIB), the two largest memecoins by value, has fallen to $13.27 billion, the lowest in three years and down about 2% this month alone, even though market leader bitcoin BTC$64,794.11 has risen by 10%.
A more revealing picture emerges when you measure the top two memecoins against bitcoin’s market cap of $1.30 trillion.
That ratio now stands at just 1.02%, the lowest on record. That’s a dramatic reset if considering where things stood at the peak of memecoin mania in 2021, when DOGE and SHIB together accounted for 7% of bitcoin’s market cap. In other words, for every dollar invested in bitcoin, seven cents were chasing internet joke tokens. Today that figure is just over one cent.
Bitcoin has grown substantially since 2021, meaning memecoins haven’t just lost value in dollar terms, they have ceded ground against the very asset that defines the crypto market cycle.
