The meme coin market is facing tough times following recent events tied to the Shibarium attack. Major coins like Dogecoin, Shiba Inu, and PEPE have seen significant value drops in a short period.
Meme Coin Market in Trouble
The total market cap of meme coins has fallen by 7.4% following the attack on Shibarium, leading to declines in key coins such as Dogecoin (-8.4%), Shiba Inu (-6.4%), and PEPE (-7.8%). Even lesser-known coins like Bonk and Fartcoin lost about 10%. The main cause of the decline was the disruption caused by Shibarium, but it may not be the only reason.
Details of the Shibarium Hack
Shibarium is a blockchain designed for Shiba Inu that features a bridge for moving cryptocurrencies between various blockchains. Hackers stole nearly $3 million by exploiting a fake request from a validator linked to Ryoshi Labs, with support from other validators. By utilizing a ‘flash loan,’ the hacker was able to confirm fake transactions and withdraw funds from the bridge.
Response of Meme Coins and Forecasts
Despite the negative news, analysis suggests that Dogecoin is likely to recover due to an upcoming ETF launch in the U.S. Shiba Inu and PEPE also maintain positive projections despite their recent losses. SHIB is near a critical threshold, while PEPE could reach new heights in the short term, indicating potential recovery for meme coins in the future.
While the meme coin market is under pressure, history shows they can rebound quickly. The future of these assets will depend on community responses and market changes.
