- Crypto markets tumble as Bitcoin drops from $111K to $105K, dragging altcoins down hard.
- Layer 2 and gaming tokens lead declines with double-digit losses across timeframes.
- Profit-taking, macro risks, and FTX repayments drive a broad crypto market correction.
An overall selloff has affected the cryptocurrency market, with Layer 2 tokens, gaming projects, and meme coins experiencing sharp drops across multiple timeframes. The correction comes as Bitcoin retreated from its recent high of above $111,000 to current levels around $105,000. This has triggered weakness throughout the altcoin sectors.
Layer 2 scaling solutions have been particularly hard hit, with the sector’s combined market capitalization falling 7.34% to $13.54 billion. Stacks (STX) leads the decline with a 19.95% drop over seven days, trading at $0.7861. Optimism (OP) follows closely with a 14.88% weekly decline to $0.6883, while Arbitrum (ARB) has fallen 13.63% to $0.3709.
The weakness extends across different timeframes, with most Layer 2 tokens showing red across 24-hour, weekly, and longer periods. This broad-based decline suggests systematic selling rather than project-specific issues driving the correction.
Gaming Tokens Struggle Amid Market Pullback
Gaming and metaverse tokens have faced equal selling pressure, with major projects posting double-digit weekly declines. Render (RENDER), used for distributed GPU computing, has dropped 19.94% over seven days to $4.15.
Immutable (IMX), focused on gaming NFTs, has fallen 18.37% to $0.5763 with a $1.06 billion market cap. Even projects showing minor weekly gains, like Four (FORM) at 0.41%, have struggled with daily and hourly declines.
Memecoins Also Hit Hard by Market Decline
The meme coin sector has not escaped the broader market pressure, with major tokens posting losses across timeframes. Dogecoin (DOGE), the largest meme coin by market cap, has declined 16% over seven days to $0.2042 and 9.14% in the past 24 hours.
Shiba Inu (SHIB) has fallen 13.39% weekly to $0.00001334, while Pepe (PEPE) shows a 17.41% decline to $0.00001278. Even politically-themed tokens like Official Trump (TRUMP) have retreated 18% over seven days to $11.54.
Newer meme coins have faced even steeper declines, with Bonk (BONK) down 22.74% weekly and Fartcoin experiencing a 28.23% drop. Several factors appear to be driving the broad-based cryptocurrency selloff. Bitcoin’s retreat from $111,000 highs has created a risk-off environment that typically affects altcoins more severely than the leading cryptocurrency.
Related: U.S. Court vs. Trump Tariffs: Bitcoin and Altcoins Take a Hit
Market Selloff Driven by Profit-Taking and Macro Risks
Post-rally corrections are common following strong rallies, with markets often consolidating gains before potential continuation moves. The technical nature of the decline suggests profit-taking rather than fundamental deterioration in underlying projects.
Macroeconomic uncertainty, including concerns about U.S. trade policy and potential GDP contraction, has contributed to broader market weakness. Additionally, upcoming FTX repayments, which are expected to exceed $5 billion in stablecoins, could create further selling pressure as creditors receive their distributions. The Bitcoin 2025 conference conclusion without major announcements may have disappointed some market participants expecting catalysts. All these factors could have contributed to the selloff timing.
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