Analysts have noted a decline in interest towards meme tokens following the fall of Pepe (PEPE-USD) and forcing investors to consider similar meme coins to sell. Notably, crypto enthusiast and influencer Ben Armstrong recently shared his perspective, stating that he believes most meme coins will eventually become worthless, with the exception of Dogecoin (DOGE-USD). Armstrong likened trading meme coins to a game of hot potatoes and advised his subscribers to close positions instantly after taking profits from such investments.
Meme coins are known for their price volatility and rapid fluctuations, caused by multiple factors such as investor sentiment, social trends and overall market conditions. Presently, there are three coins witnessing substantial declines as investors are exiting the market.
Pepe (PEPE-USD)
Pepe has seen a significant 70% decline in value over the past month, despite remaining the third-largest meme token by market capitalization. Despite its surge in April, rising by 2,192%, the coin has dropped more than 13% in recent weeks. This has resulted in an overall decrease of over 26% in the past 14 days.
Despite this decline, PEPE still holds a market capitalization of $750 million.
Currently, there are 127,305 PEPE holders, with the top ten wallets controlling 42% of the coin’s supply. Additionally, the top 100 richest Pepe holders own 65% of the total supply, which introduces additional risk for traders involved in this meme coin asset.
Big Eyes Coin (BIG-USD)
The Big Eyes Crypto (BIG-USD) presale, initially setting a hard cap of 51.2 million USDT, faced delays and red flags. Investors began to have some reservations about the crypto when it took almost a year to launch since the planned release in August 2022.
During the presale, the Big Eyes token had fifteen price moves, including a 600% increase from $0.0001 to $0.0006, attracting early-stage investors to secure profits. However, its price on Uniswap fell below the final presale stage price, leading to frustration among some investors.
Despite a listing price of $0.0006 and a total supply of 200 billion tokens, the fully diluted market cap valuation of Big Eyes Token would have reached $120 million. This would have made it the 7th largest meme coin in the market, following Dogecoin, Shiba Inu (SHIB-USD), Pepe, Floki (FLOKI-USD), Baby DogeCoin (BABYDOGE-USD) and Bone Shibaswap (BONE-USD). It’s worth noting that all of these coins had smaller market capitalizations in their early stages before achieving higher valuations.
However, even if Big Eyes Token maintained its market cap without a major sell-off from early profit-seeking buyers, its potential for significant growth would be limited. A gain of less than 10x would only surpass the $1 billion milestone, which is relatively low for a meme coin. Pepe is a recent exception, but even its market capitalization has declined back to $600 million.
At present, Big Eyes Coin has a market cap of $2 million and may encounter difficulties in rebuilding investor trust due to the concerns surrounding its launch.
Milady Meme Coin (LADYS-USD)
Milady Meme Coin (LADYS-USD) has seen a substantial price decline of over 400% in the last month. Lookonchain traced this drop to significant transfers of LADYS from suspicious wallets.
According to Lookonchain, 86 wallets transferred a total of 90 trillion LADYS to multiple crypto exchanges causing the price of the meme coin to plummet by 30%. These wallets have been marked as suspicious due to still holding 131 trillion LADYS, a $15 million value.
A significant wallet associated with DWF Labs transferred 15.1 trillion LADYS, valued at $2.1 million, to popular crypto exchanges. LADYS initially surged 12,056% after Elon Musk’s tweet, but it has since plummeted by 400% and is recommended for selling among meme coins.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
