Meme Coins Plunge Amid Profit-Taking and Liquidity Rotation

Meme-based cryptocurrencies are experiencing significant volatility, with popular dog-themed tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF), Gigachad (GIGA), and Floki (FLOKI) all showing substantial price declines despite increased trading activity. This trend suggests aggressive profit-taking by short-term holders and a rotation of liquidity towards newer, viral tokens like Snowball and Book of Meme derivatives.

Dogecoin (DOGE) is currently valued at $0.1764, reflecting a 4.28% decrease over the past 24 hours. The token reached a daily high of $0.1872 before experiencing a steep decline with minimal recovery. This movement is accompanied by a sharp rise in trading volume, indicating sell-offs and profit-taking among short-term holders. The market capitalization of DOGE stands at $26.4 billion, with a circulating supply of 149.67 billion tokens. The downward trend in price, coupled with increased volume, suggests heightened intraday volatility due to speculative demand or quick position adjustments.

Shiba Inu (SHIB) has also experienced a price decline, currently trading at $0.00001189, down 3.90% in the last 24 hours. Despite the drop, trading activity surged by 124.40%, with daily volume reaching $372 million. SHIB’s market capitalization has fallen to $7 billion, with a near-max circulating supply of 589.5 trillion tokens. The volume spike suggests heightened interest from traders possibly rotating positions within the meme coin sector.

Dogwifhat (WIF) declined by 7.39% in the last 24 hours, currently trading at $0.8315. The token dropped from a peak of $0.924 before trending lower and entering a sideways range. WIF’s trading volume surged by 58.48% to $567.9 million, highlighting intense activity likely led by sell-side orders. The token’s market cap is $830.63 million, with a circulating supply of 998.84 million WIF, closely aligned with the total supply. The absence of a max supply cap could raise long-term dilution concerns, especially during downturns, though it currently remains within highly traded meme categories.

Floki (FLOKI) experienced an 8.93% decline over the last 24 hours, bringing its price to $0.00007728. The asset hit a daily high of $0.00008446 before falling sharply and entering a period of limited recovery. This decline comes alongside a 49.54% rise in daily trading volume, totaling $131.8 million. The token’s market cap is now $743.86 million, with a circulating supply of 9.62 trillion FLOKI out of 9.66 trillion total. Though inflation risks appear contained due to a nearly full supply, the lack of a fixed cap may still affect long-term demand during bearish phases. The recent volume and price patterns reflect active repositioning among short-term traders responding to broader meme sector moves.

Gigachad (GIGA) posted the steepest price decline among the major meme coins, falling 18.80% to $0.02268. The coin opened near $0.02804 before entering a strong downtrend that persisted throughout the session. Trading volume fell by 6.13% to $22.99 million, indicating reduced buying activity amid increased sell pressure. GIGA’s market cap now stands at $211.05 million. The token has a circulating supply of 9.3 billion out of a capped 10 billion. While this limited issuance could reduce inflation risks, the current liquidity shortfall may hinder short-term recovery. The token’s performance signals waning momentum, possibly triggered by previous hype cycles now entering a cooling phase.

New viral tokens like Snowball and Book of Meme spin-offs are attracting liquidity, marking a rotation away from top meme coins. This shift suggests that traders are seeking new opportunities within the meme coin sector, potentially driven by the hype and speculation surrounding these newer tokens. The volatility and price declines in established meme coins indicate a cyclical pattern of profit-taking and repositioning, as short-term holders adjust their portfolios in response to market dynamics.