TL;DR

Numerous major cryptocurrencies and meme coins suffered significant losses following a decline of the entire market in the past several hours. Dogecoin (DOGE) and Shiba Inu (SHIB) are among the affected, and the SHIB burning mechanism has recently stalled its progress.

The Pullback

The cryptocurrency sector experienced a severe correction in the last 24 hours, which erased much of the gains recorded last week. Currently, the global crypto market capitalization is less than $2.2 trillion, with Bitcoin (BTC) plunging below $60,000 and Ethereum (ETH) losing the $2,500 resistance level. 

The situation in the meme coin niche is no better, with numerous tokens plummeting by double digits on a daily scale. The well-known names that were affected the worst were the Solana-based dogwifhat (WIF) and Bonk Inu (BONK), which fell by 10% each.

WIF Price, Source: CoinGecko The biggest frog-themed meme coin, Pepe (PEPE), is also down nearly 10%, while its rival Brett (BRETT) has tumbled by 7%.

Popcat (POPCAT) is the only meme coin from the top 20 list witnessing some price increase. It is up 3% in the past 24 hours and a whopping 60% weekly.

Currently, the cat-themed token trades at around $0.71 (per CoinGeckos data) and has a market cap of over $700 million. It is the largest in its cohort, followed by Cat in a Dogs World (MEW) and Mog Coin (MOG).

What About the Leaders?

The biggest meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are also down, albeit in a more modest fashion. The former is currently trading just south of $0.10, representing a 6.5% decrease on a daily basis. It remains one of the top 10 cryptocurrencies, with a market cap of around $14.5 billion.

The self-proclaimed Dogecoin killer SHIB has recorded a similar decline and is worth approximately $0.00001377 as of the moment.

Its price retreat coincides with the poor performance of the layer-2 scaling solution Shibarium. Active accounts and daily transactions processed on the protocol have been on a downfall in the past week, generally indicating a decrease in user engagement and activity on the network.

Shiba Inus burning program has not impressed either. Over the past 24 hours, the burn rate collapsed by 100% since the team has not destroyed a single token.

The mechanisms ultimate goal is to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in time (should demand stay the same or go up).