The cryptocurrency market is reeling from a sharp downturn, with meme coins bearing the brunt of the sell-off. On May 31, 2025, the total crypto market capitalization erased $147 billion in just 24 hours, triggering widespread losses across digital assets. Among the hardest hit are meme-based cryptocurrencies—especially PEPE, BONK, and other community-driven tokens that surged in popularity during recent bullish cycles.
This sudden correction highlights the volatility inherent in speculative assets and raises questions about the sustainability of meme-driven valuations in a tightening macro environment.
Meme Coins in Freefall: PEPE and BONK Lead Losses
Meme coins, known for their high-risk, high-reward nature, are experiencing double-digit declines. Pepe (PEPE), often referred to as the "largest frog coin," dropped 12.1% in a single day, according to CoinGecko. Its price fell to $0.0000113**, a multi-week low, pushing its market cap below **$4.7 billion.
This represents a staggering 60% decline from its all-time high reached on December 6, 2024. Despite its viral origins and strong community backing, PEPE’s fundamentals remain purely speculative, leaving it vulnerable during broader market corrections.
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Meanwhile, Bonk (BONK), the Solana-based meme token, lost 10.3% overnight. Its price plunged to $0.00001587**, with market capitalization shrinking to **$1.29 billion on declining trading volume. The drop in volume suggests weakening investor interest—a potential red flag for future price action.
Other major meme players are also bleeding value:
- SPX6900 (SPX), a favorite in analyst Murad Mahmudov’s portfolio, fell 13% to $0.9595.
- Dogecoin (DOGE), the original meme coin, dropped 7.8% to $0.189.
- Shiba Inu (SHIB), once dubbed the “dogecoin killer,” dipped to $0.00001254, continuing its struggle to regain momentum.
These losses reflect a broader retreat from risk-on assets as investors reassess exposure to low-utility, high-volatility tokens.
Sector-Wide Impact: Frog-Themed and Solana Meme Coins Hit Hardest
The meme coin ecosystem is not collapsing uniformly—certain subcategories are suffering more than others. According to market data, the worst-performing segments include:
- Frog-themed meme coins: down 16.1% in 24 hours
- Murad Mahmudov-associated meme tokens: down 16%
- Solana-based meme cryptos: down 13.8%
The sharp decline in frog-themed tokens—led by PEPE and FLOKI—suggests that thematic trends can amplify both rallies and sell-offs. When a narrative loses steam, momentum reverses quickly.
Similarly, Solana-based meme coins are under pressure due to reduced network activity and declining investor sentiment toward the broader Solana ecosystem. Once a hotbed for retail speculation, Solana’s meme coin scene is now seeing capital outflows.
WIF and FLOKI Exit Top 100 Cryptocurrencies
Two prominent meme coins—Dogwifhat (WIF) and Floki (FLOKI)—have officially fallen out of the global top 100 by market cap.
WIF, which gained fame as a leading meme coin on Solana, plunged 18.6% in 24 hours. Its market cap collapsed from over $1 billion to just **$818 million**, marking a significant loss of investor confidence. The drop underscores how rapidly sentiment can shift in the absence of strong utility or development progress.
FLOKI, inspired by Elon Musk’s Shiba Inu dog and backed by an active community, fell 13.5% to $0.00008003. Despite previous efforts to expand into metaverse and NFT projects, FLOKI has struggled to maintain relevance amid increasing competition.
Even Based Brett (BRETT), another community-driven token built on Base chain, dropped 14.5% to $0.0501, signaling that no corner of the meme coin universe is immune to the downturn.
Broader Market Context: Bitcoin and Ethereum Hold Steady
While meme coins spiral downward, the larger crypto market shows more resilience. Bitcoin (BTC) dipped only 1.5%, attempting to stabilize above a key psychological level. Though its market cap briefly threatened to fall below $2 trillion, institutional buying appears to be providing a floor.
Ethereum (ETH) saw a slightly steeper drop of 2.5%, but fundamentals remain strong due to ongoing ecosystem growth and Layer 2 adoption.
This divergence highlights a critical trend: during market stress, capital flows away from speculative assets toward established blue-chip cryptocurrencies.
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Why Are Meme Coins So Vulnerable?
Several factors explain why meme coins are disproportionately affected during downturns:
- Lack of intrinsic value: Most meme coins have no revenue model, governance structure, or real-world use case.
- High reliance on social sentiment: Prices are driven by hype on platforms like X (formerly Twitter) and Reddit.
- Low liquidity in bear markets: As traders exit, bid-ask spreads widen and slippage increases.
- Concentration of holdings: A small number of wallets often control large supplies, increasing manipulation risk.
These vulnerabilities make meme coins excellent vehicles for short-term speculation—but poor candidates for long-term investment.
Frequently Asked Questions (FAQ)
Q: What caused the sudden drop in meme coin prices?
A: A combination of broader market sell-offs, profit-taking after previous rallies, and weakening social sentiment contributed to the decline. Regulatory uncertainty and macroeconomic concerns also played a role.
Q: Is PEPE still worth investing in after this crash?
A: PEPE remains highly speculative. While some investors see value in its brand recognition and community size, it lacks utility. Any investment should be approached with caution and proper risk management.
Q: Why did WIF lose its top 100 position?
A: WIF’s fall was driven by declining trading volume, reduced social engagement, and a broader loss of confidence in Solana-based meme projects following earlier hype cycles.
Q: Are all Solana-based meme coins failing?
A: Not all—but many are struggling due to reduced network activity and competition from newer ecosystems. Projects with active development and real utility may still survive.
Q: Can meme coins recover from such losses?
A: Historically, some meme coins have rebounded during bull runs fueled by renewed hype. However, recovery depends heavily on timing, narrative strength, and overall market conditions.
Q: Should I buy the dip or wait longer?
A: That depends on your risk tolerance and investment strategy. Traders often use volatility to their advantage, while long-term investors may prefer to wait for clearer signals of stabilization.
Final Thoughts: Caution in the Meme Coin Arena
The collapse of top meme cryptos like PEPE and BONK serves as a reminder of the risks involved in chasing viral trends. While these assets can deliver explosive gains during bull markets, they are equally capable of devastating losses when sentiment shifts.
Investors should prioritize due diligence, diversification, and emotional discipline—especially when navigating highly speculative corners of the crypto world.
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