Memecoins have been underperforming the wider cryptocurrency market, experiencing significant losses recently. Over the last 10 days, the total market capitalization of memecoins has decreased by 21.5%, falling from $54.70 billion on July 22 to $42.91 billion on August 2. This downturn has been accompanied by a 21% drop in daily trading volumes across the memecoin sector. Key tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF) have seen sharp corrections, with DOGE declining by 2.5% to $0.1131 and SHIB decreasing by 2.13%​. This decline is part of a broader correction in the altcoin market, which began in July 2022. The total market cap of all cryptocurrencies excluding Bitcoin (TOTAL2) has decreased by 13% from $1.031 trillion on July 22 to $942 billion on August 2. Traders have been booking profits as the relative strength index (RSI) suggested overbought conditions, leading to a corrective pullback. This has affected memecoins significantly, with interest and confidence in the sector waning​ .Additionally, market news such as the failure of approximately 99% of all memecoins launched on Pump.fun, a Solana memecoin creation tool, has contributed to the bearish sentiment. The declining trading volumes and negative market trends have further impacted the prices and market caps of popular memecoins like DOGE and SHIB​.