Meme Coins, Dogecoin and Shiba Inu, Face Correction Despite Increasingly Positive Sentiment in the Broader Crypto Market

The world's leading meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB), faced correction on Sunday despite the increasing positive sentiment in the broader crypto market.

Dogecoin price today dropped by 3.6% to $0.159. The leading meme coin has been moving along with the broader digital currency market over the past month, but it’s currently showing signs of decoupling.

Shiba Inu also saw similar momentum as the second-largest meme coin fell by 2.5% to $0.000011, with a $7 billion market capitalization.

According to data from CoinMarketCap, the total meme coin sector’s value decreased by 2.1% to $46 billion, with a daily trading volume of $4.64 billion at the reporting time.

Meme coins saw their market value reach an all-time high of $137 billion on Dec. 9, 2024. At this point, their market cap is down by 66% from its ATH.

One of the reasons that investors have been diving into less volatile assets could be the Mantra (OM) collapse on April 14. The native token of the real-world asset (RWA) tokenization platform plunged by 90%, wiping over $5 billion from its market cap.

Last month, Elon Musk, the billionaire head of the US Department of Government Efficiency, stated that the government has no plans to use Dogecoin.

This strengthened the selloff around DOGE as some investors hoped the meme coin would get connected to the D.O.G.E agency.

Crypto Lives

The meme coin correction comes while the global crypto market capitalization increased by 0.9% to $2.7 trillion, according to CMC data.

Bitcoin price today rose by 1% in the past 24 hours and is trading above $85,500 at the time of writing. Its market cap reached $1.7 trillion with a daily trading volume of $28.7 billion.

As the market regains bullish momentum, the US-based spot BTC exchange-traded funds finally recorded a net inflow of $1.5 million on April 14, according to data from SoSoValue.

The declining meme coin market cap and trading volume suggest that investor interest in speculative assets might be fading away.

To confirm this, CMC data shows that Bitcoin dominance reached a whopping 63% — a level last seen in January 2021.

However, this doesn’t necessarily mean that meme coins are dead, but that investors prefer stronger assets like Bitcoin as the financial markets wander in macro uncertainty.