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The memecoin market lost 40% of its value in a 24-hour weekend selloff, with total market capitalization plunging from approximately $73 billion to $44 billion on Saturday, October 12—the lowest level since July—before partially recovering to $53 billion by Sunday.
Dogecoin, Shiba Inu, and Pepe led the decline with weekly losses between 13% and 22%, while Bitcoin and Ethereum ETFs saw combined inflows of $338 million, highlighting the stark divide between speculative meme tokens and institutional-grade crypto assets.
Over the past four months, the memecoins market cap consistently remained above $60 billion, buoyed by strong retail demand and active trading on Solana and BNB chains. However, the sudden plunge signals a shift in sentiment and underscores the vulnerability of meme-based assets.
“Meme tokens are more sentiment-driven than fundamentals-driven, and that can lead to extreme swings,” said Elena Ward, senior analyst at ChainMetrics.
Currently, the memecoins market cap stands at approximately $57 billion, indicating partial recovery but still below previous highs.
The top ten meme tokens account for over 82% of the total memecoins market cap, representing roughly $47 billion. DOGE, SHIB, and PEPE posted weekly losses between 13% 22%, while BONK and FLOKI fell more than 20%. Even novelty tokens such as former US President Donald Trump’s meme coin dropped 20% on the week.
“Retail investors need to brace for volatility in memecoins; these markets move fast and unpredictably,” noted Vincent Liu, CIO at Chronos Research.
While meme tokens lag in recovery, other crypto sectors have bounced back quickly. NFTs, which lost 20% of their value during the sell-off, regained 10% within a day. Similarly, crypto ETFs saw inflows:
Bitcoin ETFs recorded $102 million and Ether ETFs $236 million in net inflows. This contrast shows how the memecoins market cap remains vulnerable relative to more established digital assets.
Bitcoin (BTC) and Ether (ETH) have rebounded faster than meme tokens. BTC recovered from $102,000 to above $111,000, while ETH bounced from $3,700 to $4,000.
Despite these recoveries, the memecoins market cap is still trailing, demonstrating the retail-driven volatility of meme assets.
Meme token prices are strongly influenced by social media hype, investor sentiment, and broader market trends. Analysts warn,
“Memecoins remain high-risk and heavily dependent on retail enthusiasm,” said Jesse Pollak, Head of Base Network at Coinbase.
Retail-driven interest, marketing campaigns, and cross-chain activity will determine whether the memecoins market cap can sustain long-term growth.
Retail Interest: Social media communities drive sudden surges or drops.
Liquidity Constraints: Rapid sell-offs amplify volatility.
Market Sentiment: Broader crypto shocks directly impact meme tokens.
Cross-Chain Activity: Solana and BNB chains influence token availability and value.
Investors should carefully monitor the memecoins market cap and consider strategic entries, diversification, and risk management. Meme tokens may offer short-term gains but require vigilance and timely action.
Understanding market cycles and retail sentiment is crucial for anyone looking to capitalize on meme-driven opportunities.
