The market capitalization of the memecoin sector fell to levels last seen in July as meme-based tokens struggled to recover losses in Friday’s crypto market selloff.
The meme coin sector on Saturday fell nearly 40% to a low of $44 billion from $72 billion a day earlier, according to data from CoinMarketCap. On Sunday, the memecoin market rebounded slightly to $53 billion, a level last seen in July before the Solana-based memecoin frenzy ignited the sector’s late summer rally.
Over the past four months, the memecoin market cap has remained consistently above $60 billion as the meme-based token maintains strong retail interest with Solana and BNB chains. But the recent selloff signaled a change in momentum.
As of this writing, the memecoin sector’s market cap is hovering at $57 billion, much lower than its recent performance.
Top meme coins struggle to recover from Friday’s disaster
According to CoinMarketCap, the top 10 meme coins account for approximately $47 billion, or more than 82% of the sector’s market capitalization. At the time of writing, all of these tokens were trading in the red on both the 24-hour and 7-day charts.
The biggest meme tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) all recorded weekly losses of 13% to 22%. Other top meme coins such as BONK and FLOKI have fallen more than 20% in the past week.
US President Donald Trump’s official meme coin token has also been affected by the selloff, dropping 20% on the weekly chart.
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Other sectors stabilized quickly after the market crash.
While memecoins are still recovering from the aftermath of the crash, several other sectors are showing signs of faster stabilization and recovery.
The day after the crash, non-fungible tokens (NFTs) began to rebound. During the market decline, the overall value of the NFT space fell by 20%, erasing approximately $1.2 billion in value from the sector. However, this niche market quickly recovered, rebounding 10% the day after the crash.
Cryptocurrency exchange-traded funds (ETFs) also quickly attracted new inflows after a wave of outflows following the recent market collapse. On Tuesday, the Spot Bitcoin ETF had net inflows of $102 million, and the Ether ETF recorded net inflows of $236 million.
More established cryptocurrencies also recovered quickly. Bitcoin (BTC), which fell as low as $102,000, is now trading above $111,000, according to CoinGecko. Ether (ETH), which fell below $3,700, has recovered to above $4,000.
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