Memecoin Meltdown: DOGE Leads a $1.7B Crypto Crash
Memecoin Market Plunge: The total market capitalization of memecoins dropped by 21% within 24 hours, reaching a three-week low of $119.6 billion.
Dogecoin Leads the Decline: DOGE, the largest memecoin by market cap, saw a 5.6% decrease, while Shiba Inu (SHIB) fell by 10.4%.
Massive Liquidations: Over $1.7 billion in leveraged positions were liquidated across the crypto market, marking the largest such event since 2021.
Memecoins Hit Hardest: Memecoins accounted for a significant portion of these liquidations, with $72.6 million in DOGE longs and $22.35 million in SHIB longs wiped out.
Open Interest Declines: Open interest (OI) for memecoins dropped sharply, indicating traders were closing positions in anticipation of further declines.
Increased Trading Volume: Despite the downturn, trading volume in the memecoin sector nearly doubled, reflecting heightened selling pressure.
Speculative Nature of Memecoins: The event highlighted the volatile and speculative nature of memecoins, which are often more susceptible to market swings.
Potential for Recovery: Some analysts suggest that such liquidations can reset the market, potentially paving the way for a healthier rebound.