Top memecoins traded under pressure following a multimillion-dollar hack of Shiba Inu’s layer-2 network, Shibarium, raising renewed concerns over security in joke cryptocurrencies.

On Sunday, Shibarium suffered a flash loan attack targeting its validator system, resulting in the loss of approximately $2.4 million in ether (ETH) and SHIB. The CoinDesk Memecoin Index dropped 6.6% over 24 hours, compared with a 2.3% decline for the broader CoinDesk 20 Index.

The attacker leveraged a flash loan of 4.6 million BONE tokens, the governance token for the Shiba Inu ecosystem, to temporarily control a majority of validator keys, which are responsible for confirming transactions and maintaining network security. This allowed unauthorized transactions to be approved and assets drained from the bridge connecting Shibarium to Ethereum. A flash loan is a zero-collateral, same-transaction loan commonly used to exploit temporary control over blockchain systems.

The Shiba Inu team prevented a larger breach because the BONE tokens involved were locked by validator staking rules, limiting the potential damage. Nevertheless, markets reacted negatively, highlighting ongoing security risks in blockchain networks.

Memecoins Under Pressure
SHIB experienced its largest single-day drop in three weeks, falling 4% to $0.00001369 and later trading at $0.00001359. The 23-hour session saw volatility of 4%, with pre-dawn declines pushing the token to a low of $0.000013547. Trading volume exceeded 1.064 trillion tokens, signaling strong distribution pressure.

The BONE token initially spiked above $0.36 but has now cooled, trading near $0.20, down more than 2% over 24 hours. Technical analysis shows SHIB forming higher lows and consolidating between $0.000013600 and $0.000013780, with potential upside toward the $0.000014000 resistance.

DOGE Follows the Downtrend
Dogecoin (DOGE) fell 4% to $0.2780 on Sunday and continued lower to $0.2736. The decline was amplified by a massive transfer of 119.3 million DOGE (over $34 million) to centralized exchange OKX, signaling possible liquidation by a large holder.

The Shibarium hack and these large transfers underscore persistent vulnerabilities in memecoins and the broader crypto market, reminding investors of the risks inherent in high-volatility tokens.