Crypto Market Faces Broad Selloff: Layer 2s, Gaming Tokens, and Memecoins Plunge
The cryptocurrency market is undergoing a sharp correction as Bitcoin (BTC) retreats from its recent high above $111,000 to around $105,000. This decline has triggered widespread losses across altcoins, with Layer 2 tokens, gaming projects, and memecoins all suffering steep drops.
Layer 2s See Steep Losses
Layer 2 scaling solutions have been hit hard, with the sector's total market cap dropping 7.34% to $13.54 billion. Stacks (STX) leads the fall with a 19.95% weekly loss, trading at $0.7861. Optimism (OP) and Arbitrum (ARB) have dropped 14.88% and 13.63%, respectively. Most Layer 2 tokens are down across all timeframes, signaling systematic selling rather than project-specific issues.
Gaming Tokens Under Pressure
Gaming and metaverse tokens are also reeling. Render (RENDER), known for its distributed GPU computing services, is down 19.94% this week to $4.15. Immutable (IMX), which focuses on gaming NFTs, has slid 18.37% to $0.5763. Even minor gainers like Four (FORM), up 0.41% weekly, are seeing hourly and daily losses.
Memecoins Take a Beating
Meme coins haven't escaped the downturn. Dogecoin (DOGE) is down 16% weekly to $0.2042 and 9.14% in 24 hours. Shiba Inu (SHIB) and Pepe (PEPE) have dropped 13.39% and 17.41%, respectively. Newer tokens like Bonk (BONK) and Fartcoin have fallen 22.74% and 28.23%.
Drivers of the Selloff
The pullback appears to be driven by profit-taking, macroeconomic uncertainty, and a lack of fresh catalysts. U.S. trade concerns, potential GDP contraction, and the $5B FTX creditor repayments are adding pressure. The Bitcoin 2025 conference also concluded without major developments, dampening investor sentiment.
