Memecoin Mayhem: $1.7B Crypto Liquidation Hits Hard, Dogecoin and Shiba Inu Take the Brunt
The crypto market is reeling from one of its biggest liquidation events in recent history, with $1.7 billion in leveraged positions wiped out in just 24 hours. Among the hardest hit are memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF), which have all seen dramatic price declines. The memecoin sector’s market capitalization dropped to a three-week low of $119.6 billion on December 10, as speculative trading fueled the crash.
Dogecoin, the largest memecoin, led the losses, shedding 5.6% of its value in a single day. Shiba Inu followed closely with a 10.4% drop, while Pepe (PEPE) was one of the few memecoins to post gains, rising by 1.7%. This crash comes on the heels of a sharp decline in open interest (OI) in the memecoin market, signaling the end of bullish sentiment as traders exit leveraged positions.
The liquidation event also revealed unusual patterns in futures markets, with altcoins and memecoins experiencing larger losses than Bitcoin or Ethereum futures. Nearly $100 million in Dogecoin and Shiba Inu longs were liquidated within just 12 hours, marking the largest liquidation event in the market since 2021.
Disclaimer: The cryptocurrency market is highly volatile, and the value of digital assets can fluctuate rapidly. This article does not provide financial advice. Always conduct thorough research and consult with financial professionals before making any investment decisions.
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