The meme cryptocurrency sector has suffered one of its sharpest declines this year. A severe meme coin market crash evaporated nearly $28 billion in less than 48 hours. This massive sell-off caused prices to fall by 40%. Assets returned to levels not seen since last July. Data from the tracking platform CoinMarketCap confirm the magnitude of the weekend liquidation.
The total capitalization of meme-based tokens fell drastically. The indicator dropped from a high of $72 billion to just $44 billion. Although the market experienced a modest rebound on Sunday, recovering to $53 billion, it remains well below its recent peaks ($77 billion).
The decline was widespread and affected the niche’s main assets. Dogecoin (DOGE), the leader by capitalization, fell nearly 20% during the week. Shiba Inu (SHIB) followed, losing 13% of its value. Furthermore, Pepe (PEPE), one of this cycle’s favorites, sank more than 21%. Other popular tokens like BONK and FLOKI also registered significant losses, exceeding 20% in the same period.
This collapse did not happen in isolation. It was, in fact, a consequence of a broader crypto market downturn. The main trigger appears to have been an announcement external to the digital economy. According to reports, news of new tariffs on China by the U.S. sparked panic.
This uncertainty led to a massive liquidation of leveraged positions. It is estimated that over $19 billion in leverage was wiped from the general market. Meme coins, known for being highly speculative and volatile assets, were the hardest hit by this sudden risk aversion. Retail traders rushed to exit their positions.
Is the euphoria for Solana and BNB Chain ‘altcoins’ over?
This event marks an abrupt halt to months of growth and euphoria. Much of the recent boom was driven by frantic activity on the Solana and BNB Chain networks. However, on-chain data shows a noticeable cooldown. The creation of new tokens on Solana, according to Solscan data, has decreased by approximately 50% since August.
The network went from 60,000 new tokens daily to just 30,000. Additionally, volume on Solana’s launchpads also fell. It dropped from a peak of $1.5 billion in July to $600 million by late September. This reflects a clear decline in retail enthusiasm and liquidity.
The meme coin sector now faces a harsh price correction. While other sectors like NFTs and Bitcoin show slight signs of recovery, meme coins are still far below their recent peaks. Investors are cautiously watching to see if this crash is just a temporary correction. Or if, on the contrary, it marks the end of the bull cycle for these volatile assets. The short-term future will depend on the stabilization of the general market and the return of retail investor confidence.
