- Meme coins like BONK, FLOKI, WIF, SHIB, and DOGE have crashed by double digits amid the broader market correction.
- Bitcoin has dropped below $95,000, and larger altcoins like ETH, SOL, and BNB have also seen substantial losses of around 7%.
- The market-wide correction has resulted in nearly $17 billion in liquidations across all assets, with Dogecoin ranking third in terms of liquidated longs despite being the sixth-largest non-stablecoin asset.
In a tumultuous plunge seen across the cryptocurrency market, meme coins have experienced the most significant losses. The sector, known for its volatility, has seen popular tokens like BONK, FLOKI, WIF, SHIB, and DOGE crash by double digits, leading the pack in what can be described as a bloodbath scenario.
The Current State of The Cryptocurrency Market
The broader cryptocurrency market finds itself in a state of decline, with Bitcoin dropping below $95,000 for the second time since the start of the week. Many altcoins have also succumbed to the downward pressure, with the meme coin sector particularly hit hard. Despite stories of small-time investors making substantial profits, the niche remains a risky proposition, especially during periods of market-wide corrections.
The Impact on Meme Coins
The effects of this downturn have been particularly severe on meme coins. Bitcoin’s 3% daily decline and larger-cap altcoins like ETH, SOL, and BNB slipping by approximately 7%, pales in comparison to the losses experienced by meme coins. BONK, FLOKI and WIF have all seen their values plummet by around 20%, causing a significant jolt to the industry.
The Fall of SHIB and DOGE
The two largest meme coins, Shiba Inu and Dogecoin, have not been spared from this downturn either. Shiba Inu, currently the worst performer among the top 20 altcoins, has seen its value drop by 15%, while Dogecoin has seen a 12% decline in the past 24 hours. This plunge has seen DOGE trading well below $0.4, a stark contrast from its recent multi-year peak of $0.485.
The Effects of Market-wide Correction
This market-wide correction has resulted in nearly $1.7 billion in liquidations across all assets, with long positions accounting for the majority of these. ETH leads the individual assets with $250 million in longs liquidated, followed by BTC with $175 million. Interestingly, DOGE ranks third despite being the sixth-largest non-stablecoin asset, highlighting the risks associated with over-leveraged meme coin trading.
Conclusion
This sharp downturn and the subsequent bloodbath in the meme coin sector underscore the volatile and risky nature of investing in these cryptocurrencies. While there are success stories, the current market scenario serves as a reminder of the inherent risks and the potential for substantial losses. As the market continues to evolve, investors are advised to conduct their due diligence and be wary of over-leveraging their positions.
