Analysis: Binance Meme-Coin Selling Pressure Tops $1.4 Billion Since Bitcoin Peak
Summary
- CryptoQuant's Darkfost said cumulative selling pressure in meme coins on Binance has exceeded $1.4 billion since Bitcoin's peak.
- He said that as Bitcoin has fallen as much as 54% from its peak, meme coins' share of market capitalization has dropped to below 3% of the total altcoin market.
- He warned that meme coins are exposed to heavy loss risk and potential capital losses during market downturns because they depend on speculative demand.
Forecast Trend Report by Period
Bitcoin's steep decline from its peak is deepening weakness across the digital-asset market, according to an analysis.
CryptoQuant contributor Darkfost wrote on Oct. 18 that cumulative selling pressure in Binance's meme-coin segment has exceeded $1.4 billion since Bitcoin reached its high.
Bitcoin has fallen by as much as 54% from its peak in October last year and is still trading about 35% below that level, Darkfost said. Meme coins, which are particularly sensitive to speculative demand and market trends, have been among the hardest-hit segments in the current downturn.
The pullback in the meme-coin market is also evident in its share of market capitalization. Meme coins now account for less than 3% of the total altcoin market cap, marking a record low. The figure suggests liquidity is shrinking as investment funds leave the meme-coin market.
Darkfost said meme coins rely heavily on cultural trends and speculative demand rather than clear fundamentals, leaving selling pressure concentrated in market downturns. As Bitcoin's price correction continues, investor appetite for relatively riskier assets has faded more quickly.
He added that the latest case shows meme coins can be exposed to substantial losses during downturns in the digital-asset market, warning that heavy investment in the sector could lead to significant capital losses.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.