Memecoins Are Losing Their Steam as Liquidity Flows Out of the Market

While the crypto market is currently going through a muted period, memecoins – known for their drastic price movements – are losing strength and are lacking

The crypto market is currently going through a muted period, and memecoins – which are known for their drastic price movements – are losing strength and aren’t able to sustain any substantial price upticks since the past few days. The overall memecoin market cap has declined over 10% in the past 30 days while it also sustaining a loss of 4.86% in the past 24 hours.

According to Coinmarketcap data, leading memecoins – including Dogecoin (DOGE), Shiba Inu (SHIB) and PEPE have declined 4.78%, 3.52% and 3.95% respectively. Whereas, BONK, SPX and WIF have dropped nearly 12% in the past 24 hours.

Other popular memecoins like FARTCOIN, TRUMP, FLOKI, BRETT, PENGU, and POPCAT haven’t able to secure any significant traction in the past 7 days.

One of the primary reasons behind the memecoin market becoming weary is that liquidity outflows have increased to record levels since Trump launched the tariff war a few weeks back. This isn’t only impacting liquidity in memecoins but top crypto assets like Bitcoin and Ethereum are also seeing huge outflows.

It has been historically found that Memecoins tend to show notable upsticks when new liquidity is entering the market. For example, when Bitcoin was on its way to break above the $100,000 price mark for the first time in January, memecoins were able to print huge green candles with daily double-digit gains. Now as the crypto market is becoming weak in capital inflows, memecoins are reacting to it accordingly.

If a potential reversal in memecoins is to take place, it will first be seen in leading crypto assets and once they spike, memecoins will be the direct beneficiary of it.