to leave a comment.
▲ Meme Coin 'Crash' / ChatGPT Generated Image ©
As an unprecedented geopolitical 'nuclear bomb' in the form of armed conflict between the regular forces of the United States and Iran has fallen, the meme coin sector, the most volatile within the virtual asset market, has been collapsing disastrously for two consecutive days.
According to CoinMarketCap, a global virtual asset market tracking site, at 8:48 AM on the 20th, the global meme coin market capitalization shrank to $31.61 billion, a 2.30% decrease from 24 hours prior. This continues a sharp decline after the $33.8 billion mark was broken the previous day. Notably, the 24-hour trading volume increased slightly by 12.90% from the previous day, reaching approximately $4.88 billion, but this is analyzed as a result of fearful investors liquidating their holdings rather than a surge in bargain hunting.
Dogecoin (DOGE), the leading meme coin, recorded a 2.05% drop from the previous day to $0.09304, moving further away from the $0.1 support level. Shiba Inu (SHIB) is trading at $0.000005895, down 2.93%, and Pepe (PEPE) is at $0.000003644, down 3.75%. Meme Kombat (M) and Bonk (BONK), which faltered significantly the previous day, also continued their weakness, falling by 1.78% and 2.49% respectively. Official Trump (TRUMP) remained at $2.79, down 3.09%. Siren (SIREN) was hit hardest, plummeting by 11.82%.
This chain collapse of meme coins is a typical 'risk-off' result, triggered by news that Iran attacked a U.S. warship with drones, leading to extreme fears of an all-out war. Meme coins, which rely on community sentiment and speculative psychology without intrinsic fundamentals or practical use cases, are becoming the primary liquidation target for investors in the current macroeconomic climate where the economy is on the brink. While the leading cryptocurrency, Bitcoin, is precariously balancing around $74,000, the meme coin ecosystem, with no defense whatsoever, is literally collapsing helplessly.
Experts unanimously agree that it is too early to discuss a bottom for the meme coin market as long as there are no clear signs of easing military tensions in the Middle East. If even the last-minute U.S.-Iran talks scheduled for the 20th fail and oil prices surge further, the meme coin sector could experience yet another abyss. Given that market volatility is spiraling out of control, the prevailing warning is that meme coin investments are extremely risky for the time being.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.