Iran - Israel tension hit memecoins: Big drop!

Memecoins, which made a name for themselves in the first months of the year, seem to have lost the excitement behind them in recent days. Joke-themed altcoins, which once brought astronomical profits to their investors, are now among the biggest losers in the market.

While the political and military tension between Israel and Iran in the Middle East negatively affected Bitcoin (BTC) and Ether (ETH), the risk of war was also reflected in memecoins.

The cryptocurrency with the largest market value lost 8.1 percent in value in the last week. Weekly loss in ETH was 10.1 percent

Aside from the near-double-digit declines of Bitcoin and Ethereum, the extent of damage in memecoins was much greater. The five biggest joke-themed altcoins are all down more than 20 percent on a weekly basis

According to CoinGecko data, although Dogecoin (DOGE), the ancestor of memecoins, gained 3.6 percent in value in the last 24 hours, the weekly decline was recorded as 21.4 percent. In Shiba Inu (SHIB), which follows Dogecoin, this figure is around 20 percent.

Solana-based memecoin Dogwifhat (WIF) has fallen 25.8 percent in the last 7 days. PEPE and FLOKI, who were in the fourth and fifth places, made them lose more than their rivals. Both altcoins lost 29 percent of their value

Market depth remains solid

Price declines also caused a decrease in transaction volumes. Data tracked by institutional crypto exchange FalconX shows that average daily trading volume on prominent memecoins dropped from $5.8 billion in March to $3 billion in May. Still, this figure is well above the $500 million per day recorded in January.

Additionally, the 1% market depth, a liquidity indicator that measures how easily large orders are executed at fixed prices, remained strong.

According to FalconX's analysis, the 1% market depth of DOGE, the largest memecoin in the world by market value, reached $ 10 million on Friday, the highest level in the last year. In comparison, the market depth of the second-ranked meme token, SHIB, reached $4 million.

Experts made a separate note that memecoin liquidity remained intact despite the decline.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.