Bitcoin faces second largest liquidation event in history, erasing 25% of Base meme coins’ market cap

Bitcoin (BTC) derivatives traders faced over $226 million in liquidation in the past 24 hours, according to Coinglass data. On-chain data for Bitcoin states that this marks the second-largest liquidation for BTC in its history, after the one triggered by the collapse of the defunct crypto exchange FTX. 

Meanwhile, meme coins on Coinbase’s Layer 2 chain Base have erased over 25% of their market capitalization in the past 24 hours, per CoinGecko data. 

Brett (BRETT), Toshi (TOSHI), Degen (DEGEN), Basenji (BENJI), and ChompCoin (CHOMP) lost between 19% and 30% of their value in the past 24 hours, offering sidelined traders an opportunity to buy. 

Base meme coins suffer steep correction as Bitcoin dips

Bitcoin faced a massive liquidation event, erasing nearly $226 million in derivatives positions in the past 24 hours. The correction in the largest crypto-asset by market capitalization ushered in a decline in altcoins and different categories of tokens. 

According to on-chain data, the ongoing liquidation is the second-largest event in Bitcoin’s history, following the FTX collapse in November 2022. The recent correction is likely triggered by market-moving events like German government Bitcoin transfers and Mt.Gox repayment to creditors in July. 

Base meme coins erased 25.2% of their market capitalization in the past 24 hours. Early on Friday, the market capitalization is $1.476 trillion, per CoinGecko data. 

The meme coins Brett (BRETT), Toshi (TOSHI), Degen (DEGEN), Basenji (BENJI), and ChompCoin (CHOMP) lost between 19% and 30% of their value in the past 24 hours. The Base-based meme coins have extended their weekly losses. 

Each meme token is down between 30% and 41% in the past seven days. 

Base-based meme coins 

Meme coins are a key narrative of this cycle, offering traders an opportunity to multiply their capital and yield gains. The decline in meme coin prices has offered traders an opportunity to “buy the dip”, so sidelined traders can capitalize on the correction and open new positions in these assets.