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Fears of stagflation triggered by geopolitical tensions in the Middle East and a U.S. employment shock have battered the cryptocurrency market, sending the highly volatile meme coin sector into a steep collapse.
As of 6:57 a.m. on the 7th, data from global crypto market tracker CoinMarketCap showed that the total market capitalization of meme coins shrank by 7.41% over the past 24 hours to $28.44 billion. The 24-hour trading volume, a key measure of market activity, also plunged 19.46% from the previous day to $2.87 billion, clearly indicating that investor buying sentiment has frozen.
Leading meme coins suffered significant losses. Dogecoin (DOGE) fell 2.95% over the past 24 hours to $0.09108, while Shiba Inu (SHIB) and Pepe (PEPE), ranked second and third by market capitalization, declined 2.65% and 3.25%, respectively, remaining mired in a downturn. Official Trump (TRUMP) and Pudgy Penguins (PENGU) dropped 2.08% and 3.88%, respectively, while SPX6900 (SPX) tumbled 7.21%, marking a sharp decline.
However, even amid the bloodbath, some tokens defied the trend. Memecore (M) and Pippin (PIPPIN) rose 2.58% and 5.47%, respectively, while micro-cap meme coins such as BIAO and WAR surged 80.90% and 59.53%. These localized spikes suggest that speculative capital flows remain concentrated in select tokens.
The primary driver behind the more than 7% evaporation in meme coin market capitalization in just one day is a complex macroeconomic crisis that swept through the New York stock market. International oil prices soared past $90 per barrel amid concerns over a potential Iranian blockade of the Strait of Hormuz, while a shocking U.S. February nonfarm payrolls report showed a decrease of 92,000 jobs. As fears of 1970s-style stagflation—marked by surging inflation and economic slowdown—spread across Wall Street, extreme risk-off sentiment took hold. As a result, large-scale capital outflows first struck the meme coin market, which depends heavily on liquidity and investor sentiment rather than fundamentals.
Looking ahead, the meme coin market is expected to face a prolonged period of intense volatility amid deep uncertainty. Until macroeconomic uncertainties ease and Bitcoin, the leading cryptocurrency, firmly establishes a bottom, it will be difficult to expect an independent trend reversal in meme coins. For now, investors should refrain from hasty bottom-fishing or chasing rallies, and instead focus on a conservative approach and rigorous risk management until macro indicators stabilize and market fear subsides.
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