Memecoins took the biggest hit in today’s market sell-off, losing nearly double its average market capitalization.
Matrixport’s report this morning regarding a possible rejection of a Bitcoin ETF application by the SEC triggered significant liquidations across the market. In four hours, the market lost more than $540 million, with Bitcoin and Ethereum falling nearly 10%.
However, the meme coin market appears to have come to the sharp end of liquidation, with all major meme tokens today losing more than 10% of their value. Bonk, the latest and most popular meme coin, is down nearly 16% today, with the token down 66% from its all-time high reached less than three weeks ago.
Dogecoin suffered perhaps the worst decline among the top meme tokens, going from $0.090 to $0.0819 in just 15 minutes. Afterwards, the leading memecoin showed a slight recovery. Shiba Inu is also down over 10% on the day, but the token’s notable gains in December mean it’s still up nearly 8% in 30 days.
Today the cryptocurrency market cap fell by 4.9%, while the memecoin market cap fell by almost 11.5%. This is more than twice the average. As speculation continues to emerge regarding the potential approval of a Bitcoin ETF, it will be interesting to see how much of an impact this has on the meme coin market.