Originally published on: December 10, 2024
In a dramatic turn of events, popular memecoins such as Dogecoin, Shiba Inu, and Dogwifhat experienced significant losses on Dec. 10, erasing gains made during a recent rally fueled by Donald Trump. The overall market capitalization of memecoins fell to a three-week low of $119.6 billion, signaling a challenging period for these unique digital assets.
The sharp decline in memecoin prices resulted in a 21% decrease in the aggregate market value of this sector over a 24-hour period. The trading volume across memecoins nearly doubled, indicating heightened selling pressure and market volatility.
Dogecoin, the largest memecoin by market capitalization, led the downward trend with a 5.6% drop, while other memecoins like Shiba Inu and Pepe also saw significant losses. Interestingly, Pepe was the only top memecoin to post gains, showcasing the unpredictable nature of these speculative assets.
The decline in memecoins was accompanied by a decrease in open interest, with Pnut leading the retreat with a 30% decline. This shift in open interest suggests a bearish sentiment among traders and investors as leveraged positions are liquidated in response to market conditions.
The recent crypto market drawdown resulted in over $1.7 billion in leveraged positions being wiped out, marking the largest liquidation event of the current bull cycle. Futures tracking smaller altcoins and meme tokens experienced higher losses, with millions of dollars in long positions being liquidated within a short period.
As the crypto market faces increased volatility and uncertainty, investors are advised to conduct thorough research and exercise caution when making investment decisions. It’s essential to stay informed about market trends and developments to navigate the ever-changing landscape of digital assets.
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