Geopolitical Tensions Rattle Crypto Markets, but Meme Coin Casino Thrives
Geopolitical unrest causes a sell-off in major cryptocurrencies, but meme coin trading on platforms like Pump.fun remains strong, with Solana-based coins leading the charge.
This week, geopolitical tensions in the Middle East sent shockwaves through global markets, including the cryptocurrency space. Iran's firing of ballistic missiles toward Israel, followed by Israel's vow to retaliate, triggered a sell-off as traders sought to reduce risk. Bitcoin dropped from $65,000 to $60,000, while Solana (SOL) fell from a high of $159 to $135. U.S. stocks were not immune either, as the S&P 500 index dropped 1.25% following the news.
Bitcoin is currently hovering at a critical support level of $60,000, and as is often the case, altcoins, including Solana, saw sharper declines. Despite the broader market downturn, the meme coin ecosystem remains resilient, with activity on Pump.fun—one of the most popular meme coin creation platforms—continuing to climb, even after Bitcoin's recent dip.
In the last 24 hours, 15,322 tokens were created on Pump.fun, with 278 tokens graduating
Solana saw $1.3 billion in on-chain trading volume, of which $735 million was tied to meme coins. According to Dexscreener, the top three coins with the highest trading volumes across all chains were Solana-based meme coins.
Top three tokens by volume across chains
Leading the charge was Pochita, a newly launched meme coin on Solana, which recorded over $112 million in volume within the last 24 hours. Impressively, Pochita has surged 48,000% in just 17 hours since its launch, showcasing the increasing risk appetite of meme coin traders despite the broader market slump.
Pochita meme coin with the largest onchain volume across all chains
Historically, October has been a bullish month for Bitcoin, with the cryptocurrency gaining in nine out of the last 11 Octobers, yielding an average return of 22%. Although the start of October this year has been shaky, with Bitcoin's recent drop, it will be interesting to see if the trend continues.
Meanwhile, the meme coin ecosystem, particularly on platforms like Pump.fun, appears to be operating independently of broader market movements. Despite Bitcoin's recent pullback, meme coin trading continues to thrive, highlighting the unique behavior of this niche sector.
However, larger-cap meme coins have shown some sensitivity to Bitcoin's price fluctuations, reacting more in line with the broader crypto market.
Solana meme coin's overall market cap is down 8% in the last 24 hours, according to Coingecko, which does not include new meme coins. This dynamic could play a role in the coming weeks, as geopolitical tensions and Bitcoin's performance dictate the overall market sentiment.