• The value of meme currencies has dropped by 30% in the previous month as a result of the negative sentiment generated by potential threats to Bitcoin.

• WIF has dropped by more than 61% since its most recent all-time high on March 31.

• The crypto market may have passed the exuberant period as the liquidity of prominent meme currency projects is being consumed by celebrity meme token releases.

Sentiment research from Thursday shows that meme currencies have seen large drops in value over the last two weeks due to rumors that the market is over its euphoric moment.

Memes reverse three months of progress

Since the German government dumped its seized Bitcoin last week, the downward impact on the cryptocurrency market has intensified. Memes have seen a significant decline in value because of the market’s telling impacts of the probable supply shock caused by the repayment of Mt. Gox BTC creditors

. Except for BRETT and MOG, every major meme coin has had a value loss of more than 30% over a month. These coins are expected to offset profits made during the meme coin frenzy that lasted from March through May, according to the Sentiment chart below.

The cryptocurrency Dogwifhat (WIF), which spearheaded the Solana meme coin craze early this year, has dropped more than 61% from its all-time high of $4.83 on March 31. The top meme coin, DOGE, has dropped from its annual high of $0.2202 by more than 50%. The next most popular meme token, Shiba Inu, has similarly decreased by 57% from its peak this year.

While out-of-the-money investors are thinking about trimming their losses as prospects for a positive reversal dwindle, most in-the-money investors are debating whether to take profits as the meme coin carnage continues.

According to IntoTheBlock’s research, despite the recent decrease, over 70% of traders in DOGE, PEPE, and FLOKI are still profitable.

Crypto expert @Ali_charts, meanwhile, hypothesized that the bull cycle might be finished because the market may have already passed the euphoric stage and is now at a complacent stage. Similar advice is given by certain other traders, who urge investors to book profits or reduce losses before a subsequent downturn.

Memes could see further declines if this is the case.

The popularity of Pump. fun, Solana’s token creation tool, is another factor contributing to the decreased growth of top meme coins. The majority of traders may have moved their money from popular meme coins to the numerous celebrity meme coins that have recently entered the market.

⁰In lighter news, given their extreme volatility, the recent drop in meme coins might be viewed as a typical trend. Memes are typically the most impacted coins during market upswings or downturns, surging or falling in multiples of the overall market’s change.