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▲ 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 in the virtual asset market, has been tragically collapsing for two consecutive days.
According to CoinMarketCap, a global virtual asset market tracking site, at 8:48 AM on the 20th, the total market capitalization of meme coins worldwide shrank by 2.30% from 24 hours ago to $31.61 billion. This follows the previous day's breach of the $33.8 billion mark, indicating a continuous sharp decline. Notably, the 24-hour trading volume slightly increased by 12.90% from the previous day to $4.88 billion, but this is analyzed as a result of fearful investors exiting their positions rather than a buy-the-dip trend.
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 line. Shiba Inu (SHIB) is trading at $0.000005895, down 2.93%, and Pepe (PEPE) is down 3.75% at $0.000003644. Memecoin (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 cascading collapse of meme coins is a typical result of 'risk-off' (avoidance of risky assets) as fears of an all-out war escalated with the breaking news that Iran struck a U.S. warship with a drone. Meme coins, which rely on community sentiment and speculative psychology without fundamental value or practical use, are becoming the primary liquidation target for investors in the current situation where the macro economy is on the brink. While the leading cryptocurrency, Bitcoin, is precariously treading water around $74,000, the meme coin ecosystem, with no defensive capabilities whatsoever, is literally collapsing helplessly.
Experts unanimously agree that it is too early to discuss a bottom for the meme coin market unless there are clear signs of de-escalation in military tensions in the Middle East. If the last-minute U.S.-Iran talks scheduled for the 20th also collapse and oil prices surge further, the meme coin sector could experience another abyss. As market volatility spirals out of control, the prevailing warning is that investing in meme coins is extremely risky for the time being.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*
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