$MEME MEME COIN DOMINANCE HITS MULTI-MONTH LOWS
Dominance declining: The market share of the meme coin sector has dropped to a multi-month low of 1.23%, compared to 1.79% a year ago.
Technical analysis: Bearish signals persist for major meme coins, with DOGE's RSI at a bearish level of 40 and SHIB's at a neutral 45.
Triggering factors: The decline is fueled by market saturation, a shift in investor preferences towards utility assets, and an overall contraction of market liquidity.
Market overview
The total market capitalization of meme coins has decreased to around $46.7 billion, representing only 1.23% of the entire crypto market capitalization.
The main meme coins reflect this trend, with Dogecoin (DOGE) trading at $0.137, down 1.95% in the last 24 hours, and Shiba Inu (SHIB) at $0.00000829, down 2.13%.
The market remains heavily concentrated, with the top 10 meme coins representing about 90% of the entire sector's capitalization.
The general market sentiment is one of fear, with the Fear & Greed index currently at 26, indicating a risk-averse mentality among investors.
Main factors
An explosion of new meme coins in 2025, with nearly 5.9 million new tokens launched, has fragmented liquidity and diluted investor attention.
There is a clear trend of investors moving away from assets based solely on hype towards projects with stronger fundamentals, utility, and transparency.
A general tightening of liquidity across the cryptocurrency market has disproportionately affected high-risk and speculative assets like meme coins, causing a significant capital withdrawal.
Promotional campaign
Binance Wallet is currently hosting a campaign called "On-Chain Trade & Win," offering a total prize of 100 BNB to participants who make on-chain trades.
Trading strategy
The technical indicators for DOGE are bearish, with an RSI of 40 and a bearish MACD crossover suggesting a continued downward trend. The price is moving below the 7, 25, and 99-day exponential moving averages, signaling prolonged weakness.
SHIB shows a more neutral but weak position, with an RSI around 45.7 and a negative MACD. It is struggling to find upward momentum.
Considering the bearish trend across the sector and the high volatility, traders should act with extreme caution. A potential recovery of meme coins will likely depend on a bullish reversal of Bitcoin and the broader market.
It is advisable to wait for a clear trend reversal, confirmed by a significant increase in trading volume, before opening new long positions. The key support levels for DOGE and SHIB should be closely monitored.
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