 ▲ Meme coins ‘plunge’/ChatGPT-generated image © |
Over the weekend, an all-out war erupted in the Middle East, and war-driven fear sweeping across the cryptocurrency market has mercilessly crushed the highly speculative meme coin sector, triggering a bloodbath-style sell-off.
As of 9:42 p.m. KST on February 28 (local time), according to CoinMarketCap, the total market capitalization of meme coins had fallen sharply to $29.3 billion, marking a steep 5.77% decline. Market leader Dogecoin (DOGE) plunged 6.34% over the past 24 hours to trade at $0.08902, surrendering even the psychologically important $0.09 support level.
Losses among alt meme coins have been even more devastating. Dogwifhat (WIF) was hit the hardest, tumbling 10.03%, while Bonk (BONK) and Pepe (PEPE) dropped 7.77% and 6.94%, respectively, unable to withstand intense downward pressure. Shiba Inu (SHIB) also fell 6.29%, and PIPPIN, which recently led the meme rally, slid 3.80% to $0.6052, leaving the broader top-tier meme coin segment awash in red.
The root cause of this sharp downturn lies in the escalating military conflict between Israel and Iran that erupted over the weekend. As extreme fear grips the market, investors are rushing to offload meme coins—high-beta assets with the greatest volatility—from their portfolios to secure cash. With traditional financial markets such as equities closed, geopolitical-driven selling pressure has been funneled entirely into the 24-hour cryptocurrency market, further accelerating liquidity outflows.
The outlook for meme coins will likely depend heavily on whether the Middle East conflict escalates further and on Bitcoin’s ability to defend key support levels. In the short term, when traditional financial markets reopen on Monday, an additional wave of risk-off selling across portfolios could trigger a chain reaction of flash crashes in the meme coin sector. Given the inherently weak fundamentals of meme coins, extreme volatility is expected to persist until macroeconomic stability is confirmed, making strict risk management more advisable than premature buying.
*Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.*