Meme Coins Propel Recovery in Cryptocurrency Market After Historic Crash

The cryptocurrency market has experienced a swift rebound following a sharp weekend downturn, with meme coins leading the charge. Popular meme tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Bonk (BONK), DogeWhiffHat (WIF), and PudgyPenguins (PENGU) have all posted double-digit gains, collectively lifting the total meme coin market capitalization to $69 billion (approximately KRW 98.52 trillion).

Meme Coins See Double-Digit Surge

Over the past 24 hours, meme coins have registered significant recoveries. As of November 13, key cryptocurrency analytics outlet Decrypt reported that Dogecoin (DOGE) had surged by 11.9%, trading at $0.21. Other major meme coins followed suit:

• DogecoinWhiffHat (WIF): Up 18.4%.
• PudgyPenguins (PENGU): Gained 17.5%.
• Pepe (PEPE): Rose by 13.2%.
• Bonk (BONK): Increased 15.3%.
• Shiba Inu (SHIB): Added 9.4%.

A Dramatic Recovery After Historic Market Crash

These gains come on the heels of a massive market sell-off on Friday, which saw Bitcoin (BTC) plummet from $121,000 to $109,000, wiping out approximately $20 billion (roughly KRW 28.56 trillion) in market liquidations in a single day.

Following the crash, Bitcoin showed signs of stabilizing, climbing by 2.9% to trade at $115,227 by Monday morning. Other leading cryptocurrencies also regained ground:

• Ethereum (ETH): Gained 8.4%.
• Binance Coin (BNB): Rose by 12.2%.
• Solana (SOL): Climbed 8.7%.

Arjun Vijay, co-founder of GeoTus Exchange, called the market’s swift recovery a “logical progression.” He explained, “The flash crash was a temporary anomaly caused by cascading liquidations, and market participants had already expected a recovery." Vijay emphasized that meme coins often experience stronger rebounds after volatile drops, as risk-tolerant investors are drawn back to these high-reward assets.

US-China Trade Tensions Triggered the Weekend Crash

The weekend market upheaval was precipitated by unexpected geopolitical developments. U.S. President Donald Trump’s abrupt announcement of massive tariff hikes on Chinese imports and his cancellation of an upcoming summit with Chinese President Xi Jinping rattled markets globally. Trump defended these measures, stating they were “necessary decisions in the national interest,” despite acknowledging the “temporary pain” they would impose on Americans.

China’s Ministry of Commerce responded with sharp criticism, accusing the U.S. of weaponizing national security and applying discriminatory trade restrictions. Despite the escalation, tensions cooled slightly over the weekend, with Trump posting on Truth Social that “The U.S. does not want to harm China but wants to help.” However, prediction market platform Myriad continues to estimate only a 13.5% likelihood that Trump will visit China before year-end.

Market Resilience: "Short-Term Pain, Long-Term Gain"

Chamane Tam, Head of OTC Sales and Trading at Hex Trust, provided insight into the broader market implications of the recent crash. Tam characterized the correction as a “healthy” mechanism that eliminated excess leverage in the system. “While painful in the short term, this adjustment strengthens the market for the long term,” she stated.

Tam also pointed out that altcoins, including meme coins, suffered the most during the downturn. However, she noted that institutional investment infrastructure remained robust throughout the crisis. Bitcoin dominance failed to break above 60.5%, signaling that altcoins might spearhead the next phase of recovery as market liquidity stabilizes.

The Re-Emergence of Meme Coins Amid Broader Trends

The rapid resurgence of meme coins underscores their allure to investors seeking high-risk, high-reward opportunities. These assets often thrive during market turbulence, appealing to both seasoned traders and speculative investors.

Looking ahead, broader macroeconomic and geopolitical developments will remain critical drivers of market sentiment in the fast-moving world of digital assets. While meme coins have showcased their resilience and growth potential in volatile conditions, the overall trajectory of the cryptocurrency market will likely hinge on a delicate balance of institutional momentum, retail participation, and global economic stability.