Memecoin Market Falls 50% Since December Peak
The memecoin market has wiped out all gains made following Donald Trump’s presidential victory in November 2024, losing more than half of its value since December.
Data from CoinMarketCap shows that as of March 5, the total memecoin market capitalization stood at $54 billion, reflecting a 56% decline from its December 5, 2024, valuation of $124 billion.
After reaching a record-breaking $137 billion market cap on December 8, the memecoin market has experienced a gradual decline, with brief fluctuations driven by memecoin launches by Trump and First Lady Melania Trump in January.
Some industry analysts attribute the steep memecoin downturn to global economic instability, lack of regulatory oversight, insider trading scandals, and public figure endorsements.
Zeta Markets co-founder Anmol Singh told Cointelegraph that the “memecoin bubble has burst” due to several key factors, including uncertainty over Trump’s administration and its economic and foreign policies.
Singh also pointed to the growing influence of celebrities and social media personalities, accusing them of manipulating markets for personal gain:
“Blatant exploitation as celebrities, key opinion leaders, cabals and insiders seek to run up tokens by leveraging their influence and then take profit on the retail traders they bring in — fundamentally shaking confidence and trust among retail participants.”
Following the recent mass sell-off, Singh believes the memecoin market will likely consolidate, with major memecoins gaining dominance while lesser-known tokens fade into irrelevance.
Among the “major memecoins,” Singh referenced established projects such as Dogecoin, Pepe, Bonk, Dogwifhat, and the Official Trump (TRUMP) memecoin.
“Most other memecoins won’t be interesting for traders, and that liquidity will go elsewhere,” Singh added, suggesting that capital from fading memecoins will likely shift toward perpetual futures, spot crypto investments, or fiat.
Singh also predicted that investors would approach new memecoin launches with greater caution in the future.
At the time of writing, Dogecoin remains the largest memecoin, holding 53% of the total memecoin market cap, according to CoinMarketCap.
SHIB and PEPE are the second and third-largest memecoins, with market caps of $7.7 billion and $2.9 billion, respectively.
The Official Trump memecoin ranks fourth, with a market cap of $2.6 billion.
While some notable figures in the crypto space, such as Tron founder Justin Sun, have claimed that memecoins represent the future of crypto, he has urged investors to focus on well-established tokens like DOGE.
Sources:
https://cointelegraph.com/news/memecoin-market-cap-down-56-past-3-months-what-next
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