Meme Coins Experience Losses Following Bitcoin Flash Crash
Meme coins are known for their volatility, often surging when the crypto market is bullish and crashing harder than other tokens during downturns. This trend was evident on Tuesday as many meme coins suffered significant losses after a flash crash in the price of Bitcoin. While higher-cap meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) only experienced minor declines, newer meme coins minted on Solana saw steeper drops.
Bitcoin Flash Crash Impacts Market
Bitcoin, the leading cryptocurrency, experienced a sharp decline from above $68,000 to nearly $62,000 following a flash crash on BitMEX. This sudden drop may have affected the broader market sentiment. However, Bitcoin has already started to recover and is currently priced around $65,200, down 2% for the day.
Solana Meme Coins Take a Hit
While established meme coins like DOGE and SHIB held up relatively well, newer Solana-based meme coins faced more significant losses. For example:
- Dogwifhat (WIF) dropped from $2.77 to a low of $2.15 before rebounding to $2.65, representing a daily dip of 7%. Despite this decline, WIF is still up 30% over the past seven days.
- BONK, previously the top Solana meme coin by market cap, fell 23% in the last week but has since recovered some ground and is now down about 6% for the day. Nevertheless, it remains 50% below its all-time high.
- Book of Meme (BOME), a recent addition to the meme coin scene, experienced wild swings throughout the day, ending at a price of $0.01166, down nearly 4%. This represents a significant collapse of 57% from its peak over the weekend.
Presale Meta and Controversies
The recent trend of “presale meta” on Solana involves anonymous developers posting a Solana address for traders to send SOL (Solana’s native token). In return, they receive a batch of the newly generated meme token. While this method has enriched early BOME traders, some projects associated with presale meta have faced controversies.
One such coin is Slerf (SLERF), which saw dramatic gains but has already lost 25% from its all-time high. Despite this drop, SLERF remains up 100% for the day at a price of $1.02.
An accidental burn of the entire $10 million presale airdrop allocation by the anonymous developer caused panic among Slerf investors. However, the incident also fueled a surge in trading volume, with more than $2 billion worth of trades conducted. Solana decentralized exchange aggregator Jupiter pledged to donate SLERF trading fees to affected users.
Market Impact on Jupiter and Solana
Jupiter’s JUP token experienced a significant decline of 14% in the last 24 hours, making it the biggest loser among the top 100 cryptocurrencies by market cap. However, JUP is still up 29% over the past week. Solana (SOL) also saw a drop of 8% in value, making it one of the worst-performing top 10 coins for the day.
Hot Take: Meme Coins Face Volatility Amidst Bitcoin Crash
Meme coins, including established tokens like DOGE and SHIB, as well as newer Solana-based coins, have experienced losses following a flash crash in the price of Bitcoin. While DOGE and SHIB held up relatively well, Solana meme coins faced steeper declines. The recent trend of “presale meta” on Solana has attracted attention but has also been associated with controversies. Despite the volatility and challenges, meme coins continue to capture the interest of crypto investors.
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