Simply put
- Meme Coin Launchpad Pump.fun’s native token experienced significant losses, leading declines in the broader meme economy on Friday morning.
- Other prominent meme tokens like Dogecoin, Pepe, and Bonk also faced downturns, which affected the performance of Bitcoin and Ethereum.
- In contrast, the game token Immutable rose 17% that day, stemming from new partnerships and overall positive momentum in Altcoins.
The meme coin market took a hit on Friday morning, as Pump.Fun’s main token dropped by 9.2% in 24 hours, driving down trends in the sector.
Currently priced at $0.007213, the token has surged 142% in the past month but remains 11.5% shy of its all-time high of $0.008819, which was recorded on September 14, according to Coingecko. Additionally, the company’s daily active users have increased by 450% over the last three months.
Users on the market of the prediction platform have been shifting their strategies. On Thursday, predictions for market capitalization reached $4 billion, with a 54% likelihood of that outcome, but by Friday morning, chances adjusted to 66% for the lower end of $2 billion.
The downturn is noticeable across the Pump.Fun ecosystem, with market capitalization dropping by 6% to $3.855 billion. Significant losses included a 10% decline in Trolls and a 12% loss in Auras, while other minor tokens like Fartcoin, PNUT, and Moo Deng also faced reductions.
More established meme tokens are not faring much better. Dogecoin slipped by 5.1%, while new contenders Chillguy and Harrypotterobamasonic10Inu dropped by 7.6% and 6.4%, respectively. Overall, the meme market decreased by 4.8% in a day, totaling $87.2 billion.
This dip contrasts with the relatively modest declines noted in major cryptocurrencies. Bitcoin fell 0.8% to $116,263, and Ethereum dipped 1.3% to $4,521 amid ongoing staking issues.
Altcoins Rally
Meanwhile, outside the meme sector, altcoins have been rallying recently. Analysts believe that the SEC’s steps towards approving listing criteria for Crypto Exchange-Traded products might boost select altcoins even further.
Immutable’s tokens experienced a resurgence, climbing 17% and 47%, bolstered by the Federal Reserve’s recent interest rate cuts and various partnerships, including ones with Ubisoft and Netmarble.
This momentum has faced obstacles this year, mainly due to unsustainable token launches amidst broader challenges in the crypto gaming space.
This week marked the debut of the first ETF linked to Dogecoin, and initial market reactions were unexpectedly strong. One analyst noted that their expectations were exceeded in just the first hour, with nearly $6 million in volume already recorded. It’s quite impressive, especially considering that most ETFs typically see less than a million traded on their first day.
