Dogecoin liquidates 60 million won in one day... Maximum in 3 years

The memecoin market is showing a downward trend with the largest amount being liquidated in Dogecoin (DOGE) in three years. This is interpreted to be because when the price of Bitcoin (BTC) fell, large-scale liquidation occurred in the BTC futures market.

According to CoinDesk on the 18th (local time), $60 million (KRW 82.98 billion) was liquidated from DOGE in one day. It is the largest since 2021. According to CoinMarketCap on this day, the overall market capitalization of MEMCOIN decreased by 11% over the past 24 hours to $45.31 billion (KRW 62.6002 trillion). Dog Weep Hat (WIF), the top meme coin by market capitalization, fell the most, with its price decreasing 14.55% over the past 24 hours. Major memecoins DOGE and Shibainu (SHIB) fell 11.4 and 11.5%, respectively, and PEPE fell 10%.



The reason the MEMCOIN market is weak is interpreted as the liquidation of long positions in the BTC futures market. A long position is a contract in which an investor expects the price of an asset to rise and will buy the asset at the current price at a certain point in the future. When the price of BTC falls, investors who bet on a rise in the price of BTC liquidate their long positions. As the price of BTC plummeted that day, long positions worth about $215.69 million (300 billion won) were liquidated in the BTC futures market over 4 hours. Lucy Hu, a metalfa analyst, said, “As the price of BTC plummeted, the memecoin market also showed an overall downward trend this month.” He added, “The impact on the price of DOGE, one of the memecoins with a large market capitalization, will be significant.”

Reporter Yang Jin-ha

jjing@rni.kr