Yeliz Akmaca 
In the last 24 hours, a significant sell-off occurred in the meme coin market. TRUMP token dropped by 13.34%, Dogecoin (DOGE) by 4.23%, and Shiba Inu (SHIB) by 5.59%. This decline caused an approximately $2 billion decrease in market volume. Similar sharp declines were also seen in other popular coins like Pepe and Bonk. Pepe coin fell by 8.34%, while Bonk lost 12.19%. Especially, the TRUMP token faced sudden selling pressure following notable moves during the US President’s Middle East tour.
Investors are negatively affected by this rapid decline in these coins. The market volatility and risk aversion trend have particularly increased liquidations among retail investors. Even well-established coins like Dogecoin and Shiba Inu couldn’t escape this crash. Thus, the meme coin collapse weakened market sentiment and shook investor confidence.
Reasons Behind the Meme Coin Crash and Market Reactions
The main reasons behind the meme coin crash are general market fluctuations and risk-averse behavior. Liquidations increased on exchanges as leveraged traders closed their positions. Coins with high retail interest, like the TRUMP token, lost value due to the deteriorating market sentiment. Additionally, some experts pointed to price manipulation allegations around the TRUMP token.
On the other hand, price movements of major cryptocurrencies like Bitcoin and Ethereum also influence this market. Bitcoin’s upward momentum slowed down, while Ethereum experienced significant sell-offs. Although the altcoin market has generally been on the rise, short-term pullbacks are occurring. This situation has led investors to act more cautiously after the sharp decline in meme coins.
In conclusion, the meme coin crash indicated high risk and volatility in the crypto market. Investors are closely watching Bitcoin and major altcoins for possible recovery signals. While selling pressure continues on viral coins, the overall market balance and investor perception remain critically important.
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