The memecoin sector has seen significant growth since the year began. However, the sector’s rate of growth came to a screeching halt after Bitcoin’s fall below $67,000 precipitated a market-wide depreciation. Owing to their high correlation with the king coin, the likes of SHIB, PEPE, and WIF weren’t immune from it all.saw their prices decline significantly. AMBCrypto’s analysis of CoinMarketCap’s data revealed that WIF declined by 21.33%, while SHIB and PEPE saw their prices drop by 12.
PEPE and SHIB were moving sideways for quite some time, before this particular correction. The shocker came for WIF holders as WIF’s price action was showing no signs of slowing down on the charts.One of the primary drivers for the price movement of memecoins is how they perform on social media. WIF continued to dominate in this space, compared to other memecoins. WIF had the highest activity in terms of social volume among the three memecoins.
PEPE and SHIB would need to gain more popularity and garner more attention on social media to see a resurgence in terms of price. If WIF continues to capture market share and people’s attention, it would be harder for other memecoins to compete and stay relevant.In terms of sentiment, SHIB and PEPE were doing relatively well.
WIF, however, had a tough time in this department. The weighted sentiment declined significantly over the last few days, which could have been caused due to its recent decline in price. Because WIF does not have its own ecosystem or community, a large part of the sentiment around the token is directly correlated to its price movements.Despite the negative sentiment, however, traders have remained relatively neutral towards WIF and SHIB. Traders had taken equal parts long and short positions.
However, traders were extremely bearish against PEPE at press time. Coinglass’ data highlighted that the percentage of short positions taken against PEPE had grown to 52% over the last few hours.Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.Subscribe to get it daily in your inbox.