Cryptocurrency markets are facing renewed pressure in the wake of President Donald Trump’s latest round of tariffs, with only a few digital assets—including Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP)—managing to avoid the worst of the year’s downturn.
While Bitcoin has remained relatively stable, most leading cryptocurrencies are now down at least 20% year-to-date. The hardest-hit segments include Layer 1 blockchain networks and meme coins, both of which have seen dramatic investor pullbacks amid mounting economic uncertainty.
Layer 1 Networks See Confidence Erode
Layer 1 blockchains such as Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA), Sui (CRYPTO: SUI), and Avalanche (CRYPTO: AVAX) have all posted sharp losses. Despite retaining multi-billion dollar market capitalizations and top-tier rankings globally, these foundational networks have struggled to maintain investor interest.
Ethereum, in particular, has emerged as the biggest underperformer, plunging 46% since the start of the year—far worse than Solana and Cardano, which are each down around 20%. The drop in Ethereum is especially jarring given its prominence as the second-largest cryptocurrency with a nearly $220 billion market cap and the distinction of being one of only two cryptos (alongside Bitcoin) with a spot ETF.
The steep selloff is at odds with Ethereum’s continued institutional endorsement. The Trump administration included Ethereum in its U.S. Digital Asset Stockpile in March, and President Trump, along with members of his family, has voiced support for the asset. Ethereum is also a core holding of World Liberty Financial, the Trump-aligned crypto investment firm.
Still, that backing hasn’t been enough to stem the bearish tide as concerns over global trade and liquidity continue to dominate market sentiment.
Meme Coins in Freefall
Worse still is the performance of meme coins, a category known for its volatility and speculative nature. The recent tariff-fueled risk-off environment has decimated this segment, turning once-popular tokens into cautionary tales.
Dogecoin (CRYPTO: DOGE), the original meme coin, is down 45% this year. Shiba Inu (CRYPTO: SHIB) has dropped 37%, while Pepe (CRYPTO: PEPE) has declined by more than half. The Official Trump meme coin (TRUMP), which launched in January, has cratered a staggering 84%.
Investor sentiment has turned decisively against meme tokens. “These coins are speculative by nature, and in today’s macroeconomic climate, that’s simply not attractive,” said one analyst. Ark Invest’s Cathie Wood recently warned that most meme coins are on a path to becoming worthless.
While some meme coins may briefly spike on hype-driven rallies, analysts warn that such moves are likely to be short-lived. “Even if you see a pop, it’s probably just a dead cat bounce—or in this case, a dead dog bounce,” one market observer quipped.
Investor Takeaway
The message from the market is clear: steer clear of meme coins and approach even the more established Layer 1 networks with caution. With geopolitical tensions and economic headwinds mounting, digital asset investors appear to be retreating to perceived safety—namely, Bitcoin and a handful of regulatory-favored tokens.
For now, Ethereum’s long-term promise remains intact, but its short-term outlook has rarely looked more uncertain. As for meme coins, the speculative frenzy that once fueled their rise has all but evaporated.
Related Topics:
