Can sellers wipe out meme tokens?

Meme tokens are staging small revivals, but they are at risk even in the case of minor selling pressure. Memes are fragmented, but there is a trend of selling pressure on Binance. 

Meme tokens are having another active season, trying to revive the appeal of crypto space. The latest wave of memes was sparked by influencer Ansem, with a new perpetual airdrop incentive. 

As Cryptopolitan reported, meme tokens also appeared on the newly launched Robinhood chain. Trading in the trenches and new meme launches have proven their ability to draw in traffic to new networks, especially the high-profile ones. 

Securing enough liquidity for memes is the most contentious issue. Not all networks managed to sustain enough liquidity after their initial launch. In most cases, Pump.fun outcompeted other meme platforms for daily launches and general trading activity. 

Meme tokens come under selling pressure on Binance

Binance was the arena to sell off meme coins, showing traders were eager to shed their holdings. Since the October 10 market crash, Binance absorbed $1.2B of selling pressure from meme token holders. 

In comparison, the meme tokens on Robinhood rallied to $293 million, based on short-term hype and novelty. CashCat (CASHCAT) was the leading meme, now capped at $185M. Currently, Robinhood’s chain is in the early stages of meme token launches. New launchpads are trying to gain attention and liquidity, while retail buyers are still attracted by the potential for big gains for a small initial investment.

On Robinhood, some early entries provided those gains, though coins also went through rapid crashes. 

While new meme tokens offer relief rallies, while BTC and ETH remain stagnant, the selling pressure demonstrates that memes lead to deep losses over the long run. The new meme token market also lost its usual narrative of holding with conviction, as most meme rallies fade quickly with whale selling. 

In the past year, the Market Vector Meme Coin Index also showed worsening sentiment. The index is down over 73% in the past year, and hovers near three-year lows. 

The Binance sell-off over the past eight months shows meme tokens have no chance of outperforming the market, and are only suitable for short-term selling. Holders often see limited liquidity and deep drawdowns to zero, as interest for older memes evaporates. 

Retail returns to meme tokens

Meme tokens have taken a different weight of crypto space in 2026. In November 2024, meme valuations made up 10% of the altcoin market. Currently, memes make up between 1-3% of crypto space. Solana and BNB Chain remain the most active networks to carry memes.

Despite this, retail buyers returned to memes, looking for the potential for short-term growth. Retail has shown signs of abandoning BTC and ETH, while looking for short-term turnover. The sluggish performance of larger assets is giving way to another meme token casino, according to crypto influencers. 

According to @cryptogle, analyst and advisor to World Liberty Fi, the rising memes are also at risk of being wiped out within minutes. 

‘With some of these tokens being on perp exchanges, such as cashcat for example, it opens that risk up more because people take leveraged bets, so when price goes down they’ve gotta either cover or get liquidated,’ explained @cryptogle.

With the exception of earlier meme tokens, current launches do not promise utility. However, memes boost fee-generating platforms like Pump.fun and the most active meme dex, PancakeSwap. 

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