Investor enthusiasm for meme coins has waned following a series of unsuccessful launches and rug pulls that have dampened interest. However, the bull run is not over, and the segment could regain its position, according to a report by CoinGecko.
Experts pointed to the influence of TRUMP and the controversies surrounding LIBRA as factors that have shaped the dynamics of meme coins.
While the “presidential” token and its counterpart from the First Lady of the United States drew liquidity and attention away from other cryptocurrencies, the asset associated with Argentine leader Javier Milei became the “final nail in the coffin,” shattering illusions of their “fair launches.”
Following the Pump & Dump of LIBRA, the number of new “funny coins” on the “meme token factory” Pump.fun plummeted by more than 90%. From January to February, trading volume on the platform fell by 72%.
The total market capitalization of the sector decreased from $124 billion on December 5 to $54 billion.
According to experts, meme coins have “always been seasonal.” Some, like DOGE, SHIB, and BONK, have survived several market cycles and can serve as a benchmark for creators aiming to develop a long-term asset.
CoinGecko quoted renowned segment expert Murad Mahmudov, who explained the success of certain “funny coins” by the cult-like communities that have formed around them, deeply passionate about their cause. The founders of such projects prioritize creating organic content.
“Attention is literally a commodity, and low-quality memes will not disappear. Even ‘higher quality’ tokens must constantly attract users and keep their focus. Those who succeed have a chance to ‘survive,'” noted CoinGecko.
Analysts concluded that in the long term, 99.99% of the segment’s representatives will fail.
Earlier, Messari highlighted a decline in meme coin trading volumes on DEX to a yearly low.
Bernstein predicted a liquidity shift from the sector to DeFi and NFT. Experts are confident that the decline in hype around “funny coins” will positively impact stablecoins and RWA.
In an exclusive article, ForkLog examined the phenomenon of the popularity of AI-related meme tokens.