Memecoin market crashes 56% since December peak amid fading hype

The memecoin marketplace has erased each of the gains that followed Donald Trump’s statesmanlike triumph successful November 2024, having mislaid much than fractional of its worth since December.

According to CoinMarketCap data, the full marketplace capitalization of memecoins stood astatine $54 cardinal connected March 5, down 56% from $124 cardinal connected Dec. 5, 2024.

The memecoin marketplace has gradually declined aft peaking astatine a record-breaking marketplace headdress of $137 cardinal connected Dec. 8, concisely rising and dropping amid memecoin launches by Trump and First Lady Melania Trump successful January.

Total memecoin marketplace capitalization successful the past year. Source: CoinMarketCap

Some manufacture observers person attributed the monolithic memecoin slump to volatile planetary economical conditions, arsenic good arsenic lack of memecoin regulation, insider trading scandals and endorsements by nationalist figures.

Major memecoins are acceptable for consolidation

The “memecoin bubble has burst” owed to a fewer captious factors, specified arsenic economical uncertainty implicit the Trump medication and the premix of economical and overseas policies successful the US, Zeta Markets co-founder Anmol Singh told Cointelegraph.

Singh besides pointed to accrued engagement from celebrities and societal media influencers, who person been accused of utilizing their power to pump tokens earlier selling for profit:

“Blatant exploitation arsenic celebrities, cardinal sentiment leaders, cabals and insiders question to tally up tokens by leveraging their power and past instrumentality nett connected the retail traders they bring successful — fundamentally shaking assurance and spot among retail participants.”

Following a important sell-off, the memecoin marketplace volition apt spot consolidation into the large memecoins portion “others dilatory slice retired of relevance,” Singh predicted.

Dogecoin leads memecoin marketplace astatine 53% dominance

Among “major memecoins,” Singh cited established memecoins specified arsenic Dogecoin (DOGE), Pepe (PEPE), Bonk (BONK) and Dogwifhat (WIF), arsenic good arsenic the Official Trump (TRUMP) memecoin.

“Most different memecoins won’t beryllium absorbing for traders, and that liquidity volition spell elsewhere,” Singh said, suggesting that the remainder of memecoin superior volition apt beryllium distributed to perpetual futures, spot crypto investments and fiat. 

The apical 7 memecoins by marketplace capitalization arsenic of March 5. Source: CoinMarketCap

The Zeta Markets co-founder besides predicted that investors would apt attack caller memecoin launches with much caution going forward.

Related: House Democrats suggest measure to prohibition statesmanlike memecoins: Report

At the clip of writing, Dogecoin — a favorite memecoin of Trump’s elder advisor Elon Musk — is the largest memecoin connected the market, accounting for 53% of the full memecoin marketplace cap, according to CoinMarketCap data.

SHIB and PEPE fertile the 2nd and the third-largest memecoins, with the marketplace caps amounting to $7.7 cardinal and $2.9 billion, respectively.

The Official Trump memecoin is presently the fourth-largest memecoin with a marketplace headdress of $2.6 billion.

Some salient crypto assemblage figures similar Tron laminitis Justin Sun person claimed that memecoins are the aboriginal of crypto, but called for investors to absorption connected well-established memecoins similar DOGE.

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