Dogecoin, WIF and other memecoins suffered the biggest crashes due to the liquidation of $1.7 billion worth of cryptocurrencies.

Memecoin, like Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF), was among the worst-performing cryptocurrencies on December 10, offsetting much of the gains it made from President Donald Trump’s rally a few weeks ago.

Memecoin market capitalization took a hit.

The recent decline in memecoin’s price pushed the sector’s overall market capitalization to a three-week low of $119.6 billion as of December 10.

relevant: Bitcoin is seeing most of its liquidations since 2021, with $1.6 billion wiped out in a ‘crazy’ reset.

The last time Memcoin’s market capitalization was below $120 billion was on November 27, when it stood at $118 billion. The total market value of cryptocurrencies in this sector has fallen 21% in the last 24 hours.

Total daily trading volume in the memecoin sector has nearly doubled over the same period, indicating the intensity of selling pressure over the past 24 hours.

Dogecoin, the largest memecoin by market capitalization, led the losses, falling 5.6% over the past 24 hours. DOGE’s rival SHIB also fell, posting a daily loss of 10.4%, while Ethereum-based Pepe (PEPE) was the only top cap memecoin, up 1.7%.

Memecoins OI drops sharply.

Memcoin’s decline on December 10 was preceded by a decline in open interest (OI), with Pnut (PNUT) leading the pullback with a 30% decline in OI over the past 24 hours.

Open interest refers to the total amount of derivative contracts pending that have not yet been settled. A futures contract requires the buyer to settle the contract for every seller.

DOGE saw its IO for the day fall more than 20% to $3.1 billion, nearly six times WIF’s OI of $519 million, down 27% over the same period. PEPE’s OI decreased approximately 11% to $302.4 million.

The decline in Memecoin’s OI signals bearish momentum in the market as leveraged traders close more contracts in anticipation of further price declines.

Massive cryptocurrency liquidation due to Memecoin crash

The cryptocurrency market decline has resulted in more than $1.7 billion being lost on leveraged positions in the last 24 hours, with more than $1.3 billion lost in the last 12 hours alone.

“This is the largest long-term liquidation of the bull cycle to date,” CoinGlass said in a post to X on December 10.

Futures tracking small-cap altcoins and meme tokens posted higher losses than BTC or ETH futures in an unusual move, according to data from CoinGlass.

More than $72.6 million in DOGE longs and $22.35 million in SHIB longs accounted for the majority of all Memcoin liquidations over the past half-day.

Likewise, over $7.9 million in PEPE purchases and $3.6 million in WIF purchases were liquidated during the same period.

This marked the start of a bear market in 2022 and was the largest liquidation event since 2021. More recently, there was a liquidation event similar to the flash crash of December 5 in the derivatives market, which wiped out more than $816 million in long positions and wiped out $280 million in short positions.

During this event, BTC price fell 11% to $92,00, triggering a sell-off in altcoins, including Memcoin. DOGE fell 12% on the same day, and Mimcoin lost $1 billion in market capitalization.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.