Meme coins have faced more than $1.4 billion in cumulative selling pressure on Binance since Bitcoin hit its last peak, according to CryptoQuant.
The sector has taken a heavy hit amid the broader crypto market struggle.
Meme Coins Lose Ground
Bitcoin’s maximum drawdown since its October peak reached 54%, while its price now sits around 35% below that high. Meme coins have suffered even more as investors pull back from riskier assets. Unlike projects with stronger fundamentals, most meme coins rely heavily on online trends and community hype, which has left them vulnerable during the downturn.
Their share of the total altcoin market cap has now dropped below 3%, which is its lowest level. The decline points to a sharp loss of liquidity across the sector. CryptoQuant went on to explain,
“Overall, this situation reflects massive selling pressure on the riskiest segment of the crypto ecosystem. It is also a reminder that meme coins suffer the most in every correction, and that exposure to them carries a very high risk of capital loss.”
As uncertainty weighed on the crypto market, Dogecoin (DOGE) and rival Shiba Inu (SHIB) have both dropped almost 9%. dogwifhat (WIF) also fell by more than 10% over the past week. The controversial Official Trump (TRUMP) slid over 12%. Meanwhile, BONK and FLOKI suffered steeper losses as each fell more than 15% during the same period. MemeCore (M) saw the biggest drop among these tokens, as weekly losses went up to over 19%.
Hunter Biden’s LAPTOP is another example of how quickly things can change in the meme coin market. The token launched on Coinbase’s Base network on September 9 and had a wild start before suffering a steep crash. It has since lost 98% of its value.
Are Meme Coin Communities Dying Out?
The growing pressure on this sector has also sparked criticism from traders. One market commentator believes meme coins are dying because of the “toxic” trading culture surrounding them. In a recent post, Maverick blamed the Solana-based launchpad, Pump.fun, for encouraging rapid trading instead of building strong communities because many traders now hold tokens for barely a few seconds before selling, making it hard for any project to build real momentum.
The post also questioned the role of KOLs, while accusing some of promoting coins only to dump their holdings minutes later. Even tokens with genuine community support can struggle to gain traction as traders keep selling and pushing prices down. To top that, bundled launches offer little reassurance either, as insiders can eventually dump their tokens and leave other buyers facing heavy losses.
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