The global digital assets market continued its slump on Wednesday as Bitcoin is still trading under immense selling pressure and doubts. However, it occurred that top meme cryptos like Dogecoin (DOGE), Shiba Inu (SHIB) and BONK turned green recovering from the recent slump.
Meme tokens turn green
As per the data, the meme tokens market cap jumped by more than 4% in the last 24 hours while the cumulative market cap is down by almost 2%. The total meme crypto cap stands at $20 billion with a 24 hour trading volume of $1.37 billion.
Dogecoin, the biggest meme crypto, looking out for a breakthrough amid the ongoing slump recorded a surge of around 4% in the last 24 hours. Meanwhile, its trading volume dropped by 32% to stand at $460 million. DOGE is trading at an average price of $0.08, at the press time.
Shiba Inu trailing by 18% over the last 30 days turned green on Wednesday. SHIB price jumped by 3% in the last 24 hours pouring confidence in the other meme coins.
BONK, the latest trending token in the market also reflects the same enthusiasm by recording 10% surge over the last day. Its 24 hour trading volume is jumped by 9% to stand at $123 million. BONK is trading at an average price of $0.000011, at the press time.
Is this BTC effect?
It is important to note that this surge came in when Bitcoin witnessed a brief pause in its recent downward trend following the launch of US exchange-traded funds (ETFs). BTC rose by as much as 2.6% on Wednesday, reaching $40k, after a nearly 20% decline from its intraday peak of $49,021 post-ETF launch. The initial excitement surrounding Bitcoin ETFs is now giving way to uncertainty regarding the actual demand for these investment products.
The US spot Bitcoin ETF category has seen approximately $1 billion in net inflows, a modest figure compared to Bitcoin’s overall market value of $778 billion. Notably, the Grayscale Bitcoin Trust, which transformed into an ETF from a closed-ended format and holds the largest portfolio of the digital token, witnessed an outflow of nearly $4 billion, dampening overall sentiment.
Bitcoin’s recent decline, exceeding 20% from its peak earlier in the month, was triggered by profit-taking among investors. Deutsche Bank analysts reported that almost $4 billion flowed into new spot Bitcoin ETFs, portion directed toward products offered by BlackRock and Fidelity. However, they highlighted that $2.8 billion of this capital originated from outflows in Grayscale. This major player transitioned from being a fund to an ETF and formerly dominated the regulated Bitcoin investment market.
