Binance Faces Steep Decline in Meme Coin Value, Raising Questions About Its Role in Fueling Investor Hype

Data from CoinMarketCap shows meme coins, including Dogecoin (DOGE) and Shiba Inu (SHIB), recorded sharp declines of 9.6% and 15.3% respectively

Several meme coins listed on Binance are experiencing a steep decline in their value. These tokens, lacking fundamental value, are considered among the riskiest investments in the crypto space. The price slump highlights the inherent volatility in meme coins and raises questions about Binance’s role in fueling investor hype.

The meme coin market is valued at $114 billion, with $20 billion in trades over the past 24 hours. However, this market is known for its volatility and unpredictability.

Major Meme Coins See Significant Declines

According to data from CoinMarketCap, meme coins, including Dogecoin (DOGE) and Shiba Inu (SHIB), have seen declines of 9.6% and 15.3% over the past week, respectively.

Meanwhile, among the newly introduced tokens, OFFICIAL TRUMP (TRUMP) and Pudgy Penguins (PENGU) dropped 7.6% and 2% in the past 24 hours. Over a week, PENGU fell 22%, and dogwifhat (WIF) dropped 21%.

Even Pepe (PEPE), once the third-largest meme coin, tumbled 18% in the last seven days, losing its rank to TRUMP.

Related: Shiba Inu in 2025: Can $SHIB Make a Comeback This February?

Meme Coin Hype and Investor Risks

The introduction of meme coins like TRUMP and MELANIA by Donald Trump’s team sparked controversy, with critics labeling them as “pump-and-dump” schemes. Meme coins often rely on hype to maintain their value, leaving investors vulnerable when the buzz fades.

While Binance provides significant liquidity for these tokens, smaller meme coins often suffer from low trading volumes. This makes it challenging for investors to sell large amounts without driving prices lower.

Related: Dogecoin (DOGE) Price Outlook: Is a Bullish Breakout on the Horizon?

Adding to the risk, meme coins listed on Binance can become overly dependent on the exchange for their valuation. Any decision by Binance to delist or reduce support for these tokens could severely impact their prices.

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