BNB Meme Coin Rally Comes to a Sudden Halt
The recent surge in BNB Chain’s meme coins has abruptly ended, with several tokens plummeting between 60% and 95% in the last 24 hours. This sharp decline followed a statement from Binance founder Changpeng “CZ” Zhao, who clarified that his social media posts should not be taken as trading signals or recommendations.
Zhao’s comments came in response to a post from trader YazanXBT, which warned users that naming tokens after CZ or sending coins to their wallet would not reduce trading risks. “My tweets are not recommendations,” Zhao wrote on X. He also mentioned that he tweets normally, and any overlap with memes is a coincidence and not an endorsement.
Over 100,000 Traders Join BNB Meme Frenzy Ahead of $800 Million Market Crash
Dozens of tokens that had skyrocketed during the so-called “BNB Meme Szn” lost most of their value in a matter of hours. Market data from Bubblemaps shows that more than 100,000 on-chain traders participated in the BNB meme coin boom earlier this week, with nearly 70% seeing profits at the peak. One trader reportedly earned over $10 million, while dozens more made seven-figure profits as volumes on BNB Chain decentralized exchanges reached record highs.
PancakeSwap alone processed nearly $80 billion in trading volume in September, its busiest month since the end of 2021, and recorded $30 billion in the first nine days of October alone. However, those gains quickly evaporated as liquidity diminished and traders rushed to liquidate their positions. Several popular coins, including $HODL, $SAFU, $BROCCOLI, and $PUP, have fallen between 80% and 95% since Zhao’s clarification.
Rug Pulls and Market Sustainability
Analysts say parts of the market were also affected by rug pulls, with some tokens disappearing after gathering liquidity from buyers. The HODL token, a top performer in the early stages of the BNB meme surge, was among those that collapsed. The rapid shift has fueled the debate about sustainability in the memecoin market. Analysts warn that most short-lived tokens are based on fleeting hype rather than lasting value.
BNB Retreats After Record Run Despite Network Milestones
BNB, the BNB Chain’s native token, fell 2% in 24 hours to around $1,270 as memecoin trading on the network slowed even as on-chain activity hit new highs. The decline followed a sharp increase in trading volume and came despite the BNB Chain consuming 5 trillion gas in a single day, driven by 24 million swap transactions.
The selloff saw BNB fall from $1,308 to $1,255 before stabilizing at $1,270. Large-scale buying occurred between $1,255 and $1,280, but the token struggled to reclaim resistance around $1,320, leaving short-term bearish pressure intact. Despite the short-term exhaustion, the medium-term outlook remains positive, with BNB continuing to benefit from growing network usage.
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