The cryptocurrency market is experiencing a significant downturn, with Bitcoin and Ethereum falling below their 24-hour prices of $68,000 and $3,900, respectively. The meme coin sector has also been hit hard, dropping by 4.11% on Thursday, and its trading volume has decreased by 19.65%.

Key digital assets in the meme coin sector, such as Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE (PEPE), have seen notable declines, collectively falling by 22% after previous gains earlier in the week.

A Shift in Momentum

Earlier this week, DOGE, PEPE, and SHIB experienced significant gains, with SHIB even surpassing Cardano (ADA) to enter the top 10 largest cryptocurrencies by market cap on Wednesday. However, the market momentum has shifted, resulting in a downturn.

SHIB lost 6% of its value but remains among the top 10 largest cryptocurrencies by market capitalization. DOGE dropped 4%, reducing its market cap from $24.16 billion to $23.31 billion and losing 7.32% in trading volume. Despite this, DOGE continues to dominate the meme coin market, though it is facing competition from newer entrants.

Data from IntoTheBlock shows that the number of daily addresses interacting with DOGE has decreased by 18% compared to April. Nevertheless, DOGE remains the leading meme coin, similar to Bitcoin's dominance in the overall crypto market. SHIB and PEPE follow closely, holding the second and third positions in the meme coin segment by market value.

PEPE Takes the Hardest Hit

Among the three, PEPE has suffered the most, with a 12% decline on Thursday, positioning it as the 26th largest digital asset globally with a market cap of over $6 billion. PEPE reached an all-time high of $0.00001717 on Tuesday but has since fallen 22.6% from that peak.

The recent fluctuations highlight the high volatility of the crypto market, particularly in the meme coin sector. Investors are advised to exercise caution, as the meme coin market tends to be more volatile than the broader crypto market.