Here’s why meme coins like Floki, SHIB, Fartcoin are crashing

Meme coin prices fell on Thursday, erasing most of the gains made during the Santa Claus rally on Christmas Eve.

Fartcoin (FARTCOIN), one of the top meme coins in the Solana ecosystem, fell 16.8%, making it one of the biggest laggards.

Floki (FLOKI) decreased by 4.5%, while Shiba Inu (SHIB) decreased by 6.5%. Other prominent ones in the meme coin industry were Brett, Mog Coin, and Popcat (POPCAT).

PENGU was the only major meme coin in the green, up 6% as total sales jumped 127% to $6.1 million in the last 24 hours.

Meme coins collapse on Boxing Day | Source: CoinGecko

Meme coins pulled back and most coins fell due to risk aversion sentiment in the crypto industry. As Bitcoin fell to $95,000, the market value of all coins dropped to $3.32 trillion. Altcoins, especially the highly volatile meme coins, often fall sharply when Bitcoin is not doing well.

Meme coins and other altcoins also fell as liquidity in the crypto industry dropped due to the Christmas holidays. Data shows that most cryptocurrencies are seeing low volume as most investors and traders remain on vacation. Bitcoin’s 24-hour volume on Thursday reached $33.96 million, the lowest since November 3.

Other breast coins also had lower volume. Floki’s 24-hour volume was $238 million, the lowest level in more than a month. Similarly, Fartcoin’s volume was $187 million, while Shiba Inu’s volume was $576 million. Cryptocurrency prices often fluctuate greatly in both directions when there is limited volume.

Meme coin prices are falling as investors continue to take profits after most rose sharply over the year. Floki rose to $0.0002885 in November, 200% higher than its August low, while Shiba Inu reached $0.000033.

Additionally, there are still concerns that the Fed will make only two rate cuts in 2025. This hawkish trend has pushed bond yields higher; 10-year interest rate increased to 4.63%, 30-year and 5-year interest rate increased to 4.63%. -year increased to 4.8% and 4.50% respectively. Cryptocurrency prices and stocks often fall when bond yields rise.