Memecoins record sporadic gains as crypto meltdown continues

Data shows that memecoins are back on top of the crypto space with impressive but sporadic gains recorded in the last 24 hours despite a double-digit decline in the last seven days. The sudden gains in meme-related tokens come amid ongoing liquidations and selloffs in the crypto market.

FARTCOIN grabbed the spotlight with the most gains among the top memecoin projects, with a 31.08% gain in the last 24 hours. Despite the recent surge, the memecoin is still down by 15.26% in the last seven days.

Meme coins are having a party today! 🎉

$FARTCOIN jumps 31.52%; $AI16Z and $PENGU gain 6.64% and 6.13%.

See what's trending 👉 https://t.co/XFz4R423Nl pic.twitter.com/aoTlrIZZdV

— CoinMarketCap (@CoinMarketCap) January 14, 2025

PENGU and AI16Z soar by 10.91% and 9.14% respectively

PENGU and AI16Z also registered 10.91% and 9.14% respectively in the last 24 hours. According to data from CoinMarketCap, the two digital assets are also down over the last seven days, with 21.43% and 46.27% dips, respectively.

DOGECOIN, the largest memecoin by market capitalization, also experienced a 5.88% surge in the last 24 hours. However, the digital asset is also yet to recover from its seven-day decline, which currently sits at around 13% at the time of this publication.

SHIBA INU is also up 2.42% in the last 24 hours, reducing its seven-day decline to 12.08%.

PEPE, the first frog-inspired memecoin, is up 2% on the day but is struggling to recover from a 17% dip registered over the last week.

BONK and FLOKI are up 3.77% and 2.94%, while WIF and BRETT register 2.38% and 3.56% gains.

The sudden surge in activity among the top memecoins comes amid growing concerns over the current uncertainty in the broader global markets and the selloff in digital assets. 

The crypto market sank into the red over the weekend as Bitcoin and Ethereum slid below $95K and $32K, respectively. Bitcoin is trading at $95,483 but has dipped by more than 6% in the last seven days, while Ethereum sits at a double-digit seven-day decline of 13.27% and is exchanging hands for $3,183 at the time of this writing. 

Data from CoinGecko shows that the crypto market capitalization has largely remained unchanged and currently sits at $3.442 trillion. The industry’s 24-hour trading volume also settled at $205 billion.

Cryptocurrency market stumbles amid ongoing uncertainty in Fed rate decisions

According to a recent Bloomberg report, the crypto market seems to be struggling due to headwinds from macroeconomic factors. The report highlighted that the crypto meltdown arose due to uncertainty around the Federal Reserve‘s next policy changes.

The Fed cut interest rates in December by 25 basis points. However, Fed chair Jerome Powell has continuously given hints that the central bank will take its foot off the gas pedal for further interest rate cuts. According to his last press briefing, Powell indicated that the U.S. central bank will adopt a more hawkish stance this year due to the increased risks of a possible rise in inflation. 

According to data from Sosovalue, a U.S. spot ETF tracking website, approved Bitcoin exchange-traded funds recorded $284.19 million in negative flows on January 13. The outflows marked a three-day streak of negative flows from the ETFs that began on January 8. 

In the meantime, crypto critics have continued to pile on the crypto industry. JPMorgan Chase CEO Jamie Dimon says Bitcoin is “a Ponzi scheme” that “has no intrinsic value.” 

Despite the ongoing crypto turmoil, investors are still bullish on digital assets in the long run. Michael Saylor announced on January 13 that his company, Microstrategy added 2,530 Bitcoins to its books for $243 million at an average price of $95K per Bitcoin. The company still retains its title as the largest Bitcoin corporate holder worldwide, with 450,000 BTC in its books according to Bitcoin Treasuries.

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