The meme-coin sector came under pressure after the U.S. Senate paused discussions on the Digital Clarity Act, intensifying regulatory risk for speculative assets. The overall meme-coin market capitalization slipped 5.13% from the previous day to $44.01 billion, while 24-hour trading volume plunged about 31.8% to $50.9 billion, signaling a liquidity crunch. The declines extended to the leaders, with DOGE down 5.17% to $0.1396, SHIB down 4.06%, and PEPE off 5.71%. Solana-based DOGWIF and BONK dropped 7.15% and 6.51%, respectively, posting losses that outpaced Bitcoin.
The drop is linked to the halt in legislative progress on regulatory measures, illustrating that policy uncertainty remains the single biggest driver of meme-coin volatility. Even as most meme tokens fell, the Trump-related asset rose 4.33% to $5.35. The pullback underscores that policy and regulatory noise are driving market dynamics in the meme-coin space.
Looking ahead, traders expect the volatility to persist; a rapid volume decline suggests broader outflows unless regulatory clarity improves, and Bitcoin failing to reclaim the $96,000 threshold could deepen losses. Analysts warn that until regulatory certainty returns, meme tokens will remain highly volatile and warrant caution for new entrants.
Leave a Reply