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Meme Coin Investor Sentiment 'Shattered' by Middle East Woes…Trading Volume Evaporates by 30%, Leading to Consecutive Plunges
▲ Meme coin 'plunge' due to Trump-induced fear, Dogecoin, Pepe drop by over 10% weekly / ChatGPT generated image ©
As geopolitical risks in the Middle East reignited, the meme coin sector, known for its highest volatility in the virtual asset market, took a direct hit. With market fear reaching extreme levels, trading volume evaporated by over 30%, clearly indicating a sell-off by investors.
According to CoinMarketCap, a global virtual asset market aggregator, at 7:39 AM on the 19th, the global meme coin market capitalization plummeted by 5.00% from 24 hours ago to $33.89 billion. Notably, the 24-hour trading volume recorded $4.41 billion, a staggering 30.86% contraction compared to the previous day. This clearly demonstrates that investors are avoiding meme coin trading amidst the pervasive market uncertainty.
Major meme coins are bleeding across the board. The leading coin, Dogecoin (DOGE), is trading at $0.09518, down 5.27% from 24 hours ago. Shiba Inu (SHIB) fell by 4.22%, while Pepe (PEPE) and Bonk (BONK) also recorded significant drops of 5.17% and 6.74% respectively. Meme Core (M) and Pudgy Penguins (PENGU) also plunged by 7.93% and 6.50% respectively, indicating a sell-off across the entire meme coin ecosystem. Official Trump (TRUMP), which had seen a short-term surge, also fell by 6.18%, unable to avoid weakness.
This large-scale decline in the meme coin sector is attributed to a combination of major macroeconomic headwinds, such as Iran's re-blockade of the Strait of Hormuz and the uncertainty surrounding the second ceasefire negotiations between the US and Iran. As geopolitical tensions escalated and the leading cryptocurrency, Bitcoin, faltered, capital outflow (risk-off) occurred most rapidly and intensely from meme coins, which are the most speculative and defensively weak assets in the market.
The future of the meme coin market is expected to be entirely dependent on news flow from the Middle East. If military tensions escalate as the US-Iran ceasefire expiration date approaches on the 21st, meme coins, which lack clear fundamental support, will find it difficult to avoid further cascading plunges. Experts warn that in the current highly volatile market, even a small negative event can trigger panic selling in meme coins, and an extremely conservative approach is necessary until macroeconomic uncertainties are resolved.
*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.*
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