Meme Coin Crash: Dogecoin, Shiba Inu, Pepe Plunge Over 10% as Traders Warn of Risks

Meme coins like Dogecoin, Shiba Inu, and Pepe experienced a significant decline on Tuesday, with double-digit losses across the board. Dogecoin saw a $60 million liquidation as its price dropped over 10%, while Shiba Inu saw increased trading activity and a 5,500% surge in its burn rate. Toncoin surpassed Dogecoin to become the ninth-largest cryptocurrency by market capitalization.

Traders expressed concerns about the misinterpretation of "bluechip memecoin" in the crypto community. DonAlt highlighted the potential risks and misconceptions associated with this term, emphasizing that there are no true "blue chips" in the crypto market. He cautioned against assuming that the attention economy won't shift away from memes, DeFi, and NFTs.

Ash Crypto attributed the altcoin sell-off to a lack of narrative, the delayed Ethereum ETF trading, and excessive greed. He noted a 15%–20% decline in several large-cap altcoins despite Bitcoin's minor correction. He also observed that the delayed ETH approval has impacted sentiment and that a rally in altcoins typically starts with ETH.

Ash Crypto highlighted the role of celebrity-backed meme coins and retailer hype in driving excessive greed, historically leading to market crashes. However, he views most altcoins as oversold and believes that "buying fear" can yield substantial returns.