- It’s been a slow past few weeks for Ethereum and the decentralized finance space.
- After peaking a number of weeks ago, a number of top coins pertaining to this space have dropped off dramatically.
- One such coin, which was subject to a recent parabolic explosion, has undergone a strong retracement over the past two days.
- The Ethereum-based coin, known as MEME, has dropped around 70% from its all-time high price set just two days ago.
- The coin is the native token of the Meme project, which is a platform where users can mint and transfer digital trading cards.
- A debate is still raging over the project and if it has long-term staying power.
Ethereum Coin MEME Plunges 65% In Two Days
If you have been following Ethereum’s DeFi space over recent days, you likely know of a coin called MEME. The coin, launched just weeks ago as a free airdrop to 50 or so individuals, surged as high as $2,000 under 48 hours ago as buying pressure flooded in from across the industry.
This buying pressure is depicted in the chart below, which shows how the coin rallied around 1,000% in the span of seven days.
Unfortunately for its holders, MEME has declined as fast as it came up.
The coin now trades at $700 as of this article’s writing, nearly 70% below the all-time highs it just recently set. Those that recieved the airdrop still own coins worth hundreds of thousands of dollars, but that’s far below the highs it just set.
The drop comes after a parabolic explosion in the non-fungible tokens market, where users can sell unique pieces of digital art for Ethereum or other coins. MEME is crucial to the NFT market because it is where users can generate and transact some popular art pieces/trading cards.
The collapse of this Ethereum-based token may suggest that NFTs are in decline after their parabolic rally.
Are NFTs Here to Stay?
Many have been left wondering if NFTs are here to stay in the longer run. After all, at least in their current iteration, NFTs are only used to represent jpgs and gifs that can technically be copied by anyone.
Anthony Pompliano, co-founder of Morgan Creek Digital, though, thinks that digital art is here to stay:
“This transition to a digital art world is not a question of if it will happen, but rather when. In fact, I personally believe that the digital art market cap will grow to become larger than the physical art market cap. This may sound ridiculous today, especially since the digital art market cap is less than $10 million and the traditional art market is more than $60 billion, but this is exactly what disruption looks like… My confidence level that we see a future 6,000x increase in the digital art market cap is fairly high though.”
Whether or not all this value will accrue to Ethereum and its tokens, though, remains to be seen.