The once-thriving memecoin market appears to be cooling off rapidly following a series of bad launches and rug pulls that have eroded investor confidence. According to CoinGecko founder Bobby Ong, the enthusiasm surrounding memecoins has dwindled, with significant declines in trading volumes and new token launches.
Ong highlighted in a March 6 report that Pump.fun, a popular token launchpad, saw its metrics nosedive after the Libra (LIBRA) rug pull. The number of newly created and daily graduated tokens on the platform has plummeted by over 90% since their February peak. The launch of political-themed tokens, such as TRUMP and MELANIA, initially fueled a surge in liquidity but ultimately drained attention away from the broader cryptocurrency market.
“The launch of TRUMP and MELANIA marked the top for memecoins as it sucked liquidity and attention out of all the other cryptocurrencies,” Ong stated.
The decline is evident in trading volumes as well. Pump.fun’s activity spiked to an all-time high of $3.3 billion in weekly volume following the launch of TRUMP’s memecoin on January 18. However, volumes have since plunged by 63% from January to February. CoinMarketCap data further underscores the downturn, revealing that the total market capitalization of memecoins peaked at $124 billion on December 5 but has since shrunk to $54 billion.
“If the launch of both these coins wasn’t enough to end the memecoin mania, LIBRA was the final nail in the coffin,” Ong explained, emphasizing how the token’s rug pull exposed the unfair advantage of insiders profiting at the expense of regular investors. LIBRA, linked to Argentine President Javier Milei, saw insiders cash out $107 million, leading to a 94% collapse in its value within hours.
Despite the downturn, Ong believes that while memecoins are seasonal, a select few will endure. On-chain analytics firm Santiment also noted a shift in interest back to Bitcoin (BTC), Ethereum (ETH), and other layer-1 altcoins.
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“The likes of DOGE, SHIB, and BONK have weathered market cycles,” Ong noted, stressing that successful memecoins thrive on strong, dedicated communities that drive engagement and sustain their longevity.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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