The cryptocurrency market is currently undergoing a downturn, and meme coins are no exception. Dogecoin and Shiba Inu, two of the most popular meme coins, have seen their prices fall by over 3% in the past 24 hours. This decline has sparked discussions among market participants as they seek to understand the reasons behind the fall.

One potential reason for the decline is the prevailing market sentiment. The broader cryptocurrency market is experiencing a downturn, causing investors to become more cautious. Contributing to this bearish mood are the hawkish comments from US Federal Reserve officials regarding interest rate plans, which have further dampened investor enthusiasm. As a result, many investors are hesitant to invest in riskier assets like meme coins.

Dogecoin’s price has dropped by 3.23%, reaching $0.1223, with its trading volume decreasing by 30% to $489.51 million. Additionally, open interest in Dogecoin has fallen by 2.41% to $603.19 million, indicating waning market interest in the coin. Similarly, Shiba Inu’s price has decreased by 3.13% to $0.00001717, with trading volume plummeting by 37% to $193.65 million. Open interest in Shiba Inu has also declined by 8.25% to $32.73 million.

Despite the decline in prices, the SHIB burn rate remains positive, reflecting ongoing support from the SHIB community to reduce the overall supply. The burn mechanism, which helps decrease the supply of SHIB tokens, is a factor that can potentially increase the price. However, the current market sentiment and lack of investor interest are overriding this positive aspect.

The decline in Dogecoin and Shiba Inu prices mirrors the current cautious mood among investors. The broader cryptocurrency market’s downturn has made investors wary of risky assets, including meme coins. While the SHIB burn rate shows positive activity, it is insufficient to counteract the prevailing bearish sentiment.

As the market continues to evolve, it remains uncertain how meme coins like Dogecoin and Shiba Inu will perform in the future. Investor sentiment and market conditions will play a crucial role in determining the trajectory of these popular meme coins. For now, the focus remains on how the broader cryptocurrency market will navigate the ongoing downturn and what impact this will have on the prices and interest in meme coins.