Memecoins drop sharply and they have been severely affected from the crypto market downturn

The current downturn in the crypto market is affecting memecoins. Top memecoins by weight—Dogecoin, Shiba Inu, Pepe, Dogwifhat, and Bonk—saw significant declines.

Dogecoin 7 days price down 25%

Shiba Inu 7 days price down 19%

Pepe 7 days price down 35%

Dogwifhat 7 days price down 41%

Bonk 7 days price down 29%.

1. Dogecoin (DOGE)

Dogecoin is the earliest and the most popular memecoin, created as a joke to Bitcoin in December 2013 by Billy Markus and Jackson Palmer. It features the Shiba Inu dog from the "Doge" meme as its logo.

Key Features:

Unlike Bitcoin, Dogecoin has inflationary supply, no maximum supply limit, meaning new coins are continuously produced.

Dogecoin is a community-driven coin. It has a strong, active community that has used it for various charitable causes and fun projects. Elon Musk is Dogecoin’s supporter.

Dogecoin is a coin, not a token because it operates on its own blockchain, utilizing a proof-of-work (PoW) mechanism similar to Bitcoin.

2. Shiba Inu (SHIB)

Overview: Shiba Inu, often referred to as the "Dogecoin killer," was created in August 2020 by an anonymous person or group known as Ryoshi. It also features a Shiba Inu dog but aims to create a more vibrant and multifaceted ecosystem.

Key Features:

•  Ethereum-Based: Shiba Inu is an ERC-20 token, meaning it runs on the Ethereum blockchain.

•  Ecosystem: Shiba Inu aims to build a complete ecosystem, including its decentralized exchange (ShibaSwap) and other tokens like LEASH and BONE.

•  Community and Meme Appeal: SHIB has gained popularity through its active community and widespread social media presence.

3. Pepe (PEPE)

Pepe is a memecoin inspired by the internet meme character Pepe the Frog. It leverages the meme's popularity to attract users and investors.

Key Features:

Pepe taps into the extensive meme culture surrounding Pepe the Frog, which has been a well-known internet meme for years.

Like many memecoins, Pepe relies heavily on social media hype and community engagement for its value.

Typically, Pepe tokens are ERC-20 tokens on the Ethereum blockchain. Pepe started marketing from Uniswap’s decentralized exchange.

4. Dogewifhat

Dogewifhat is a lesser-known memecoin that builds on the Dogecoin meme with a playful twist, featuring a Doge character wearing a hat.

Key Features:

It leverages the recognizable Doge meme but adds a unique element (the hat) to stand out.

It is a new memecoin so its value and presence depend heavily on community support and social media activity.

Dogwifhat is a memecoin operates on the Solana blockchain.

5. Bonk (BONK)

Bonk is one of the earliest memecoin on Solana. It that has gained attention for its unique name and marketing.

Key Features:

Bonk is a dog-theme memecoin on Solana.

The success of Bonk, like many memecoins, is driven by its community's engagement and promotion.

This downturn is part of a broader correction in the total market cap of altcoins excluding Bitcoin, which began in early August 2022.

Memecoins are highly volatile and speculative assets in the cryptocurrency market.

Memecoins pump hard when Bitcoin is on uptrend and memecoins stagnant when Bitcoin is on downtrend.

Memecoins play an important role for the growth of smart contract platforms. Memecoins attract trading activity in decentralized exchanges, increase transactions for the blockchains.

Thus, memecoins help cryptocurrency market develop because it attracts people to use blockchains. Memecoin is one of the important sectors in cryptocurrency market apart from using for transactions, NFTs, gaming, Oracle and DeFi.