Is the Memecoin Craze Finally Over Its Time to Seriously Consider Selling DOGE and PEPE

Is the Era of Memecoins Coming to an End?
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NOIDA (CoinChapter.com) — The recent craze surrounding memecoins has allowed many users to make a significant amount of money, making it an appealing option for traders who want to make quick millions. However, it is advisable to exit the memecoin market when it’s at its peak rather than holding on with hopes of further gains.
Several traders learned this lesson the hard way when the cryptocurrency market experienced a sudden correction at the beginning of April. This correction was likely triggered by the latest US manufacturing data for March, which showed a significant increase in the ISM Manufacturing PMI from 47.8 to 50.3.
According to CME, this spike indicated growth in the US economy, reducing the likelihood of a rate cut in June to below 50%.
As a result, crypto assets started to lose their gains since higher interest rates often discourage investors from investing in riskier assets like Bitcoin. This is particularly bad news for memecoins, which are considered to be the riskiest type of assets, if Bitcoin continues to drop due to macroeconomic factors.
Memecoins in a Decline
Among all the altcoins, memecoins tend to suffer the most during a market-wide decline since there is little chance of these tokens recovering. Memecoins heavily rely on hype and FOMO (fear of missing out) to drive their rallies.
To provide some perspective, CoinMarketCap data shows that 8 out of the top 10 memecoins (based on market cap) experienced losses in the last 24 hours. This list includes Dogecoin, which is Elon Musk’s preferred memecoin.
Despite speculation that social media giant X would accept Dogecoin as a form of payment, the price of DOGE failed to rally in the past week.
Other tokens, such as PEPE, Dogwifhat, and Floki, have also continued their downward trend, with an average drop of 12.5% over the past seven days. The few tokens that are showing some signs of life are relatively new and benefit from the hype surrounding them.
Is the Solana Craze Fading?
Furthermore, memecoins based on the Solana blockchain, which were launched at a rapid pace in March, are now starting to lose their momentum. This could potentially mark the end of the memecoin frenzy.
One possible reason for this decline is that investors are moving towards other blockchain-based memecoins in search of more exposure and potentially higher profits. Additionally, Whale Alert, a whale transaction tracking account, highlighted four transactions that collectively transferred over $158 million in SOL tokens to Coinbase.
Traditionally, moving tokens to exchanges is seen as a bearish sign as it often leads to a sell-off. It is also possible that these four transactions were strategic moves made by large investors.
If a sell-off does occur, it could have a significant impact on the memecoin offerings on the Solana blockchain, resulting in substantial losses for users.
Another aspect of memecoin trading that many traders tend to overlook is the inherent risk involved.
For example, Lookonchain, an on-chain data provider, reported a user who made around $550,000 by trading the Hobbes memecoin. Once this news went viral, it attracted a wave of traders to the Hobbes marketplace.
However, before finding success with Hobbes, this user had traded 36 other memecoins and only made a profit in 10 of those trades, resulting in losses of nearly $140,000. While the gains from trading Hobbes covered these losses, that may not always be the case.
Therefore, it may be wise to remove memecoins from your wallet if your pursuit of millions ends up costing you thousands.