# Meme Coins Falter Despite Bitcoin’s Recovery to $70,000
Bitcoin has reclaimed the $70,000 mark, yet meme coins such as Dogecoin (DOGE), DogeWifeHat (WIF), and Pepe (PEPE) are lagging. Cointelegraph reports that issues like Solana’s transaction failures and declining expectations for interest rate cuts have weakened the momentum needed to propel meme coins upward.
# Decline in Meme Coin Performance
According to CoinMarketCap data from the 11th, the leading meme coin Dogecoin is trading at $0.18, down 4.3% over the past 24 hours. Shiba Inu has dropped 3.56%, WIF has plummeted nearly 13%, and other meme coins like PEPE, Bonk, and BOME have decreased between 5% and 7%. Just weeks ago, these meme coins showed double-digit daily gains but have since lost steam.
# Significant Drop in Trading Volume
Meme coin trading volumes have also shrunk considerably. Dune Analytics reports that meme coin trading volume last week fell by 88% from its previous peak of $1 billion, indicating a decline in interest and trust in meme coin transactions.
# Solana’s Transaction Failures
Adding to the woes, recent reports reveal that 75% of Solana transactions have failed, further accelerating the decrease in meme coin trades. Dune Analytics highlights that in March and early April, 75% of transactions on the Solana network failed, mainly due to meme coin trading bots. Solana, a key blockchain for individual investors and meme coin traders, has seen investor sentiment deteriorate because of these failures.
Peter Horton, a research analyst at Messari, noted that the Solana decentralized exchange (DEX) trading volume surged over 300% in the first quarter of 2024 compared to the previous quarter. However, he mentioned that recent trends in Solana’s DEX trading volumes are downward.
# Macroeconomic Factors
Robust U.S. employment data and persistent inflation have dampened expectations for immediate Federal Reserve interest rate cuts, which negatively affect meme coins. Cryptocurrencies are often viewed as attractive assets when interest rates are declining. Cointelegraph reports that the outlook for delayed rate cuts diminishes the appeal of high-volatility assets like meme coins.
