Meme Coin Supercycle Crumbles as Market Cap Declines
The meme coin market has dropped sharply over the past three months, with its total market cap falling by 56.8%.
This dramatic decline raises the question of whether the era of explosive growth of these digital assets is over.
Meme coin market sees a sharp decline
Meme coins have experienced a huge surge The popularity of the whole year of 2024. In the year, the total market value soared by 500%, of which Meme Coin Narrative Lead Encrypt the sphere.
According to a small top hat ReportMeme Coins are the most popular crypto trend in 2024. They account for 14.3% of the total narrative interest, which is a significant increase from 8.3% of 8.3% in 2023.
However, recent developments present a contrasting narrative.
“Since December, Meme Coin’s market value has dropped dramatically. It’s the weakest narrative and it’s not worth putting your money into it.” Analysts Write On X.
As of March 5, the latest data showed that the total capitalization of Meme Coin’s market value fell to $54 billion. This is a 56.8% drop in the $125 million peak on December 5, 2024.
Trading volumes have also taken a hit, down 26.2% in the past month alone. This has raised concerns about the “meme coin super loop”.
“Is this the end of the meme coin super loop?” crypto analyst Lark Davis question.
Meme Coin Super Loop refers to the rapid growth and guessing long term of meme-based cryptocurrencies. But as the number drops, the community is now working to worry that the hype may disappear forever.
Dogecoin (Doge)It accounts for nearly half of the market capitalization of meme coins and has dropped 21.7% in the past month. this The downturn is not limited to Taoist sect.
The second largest meme coin, Shiba Inu (Shib)and also suffered a large decline. In the past month, It has slipped 10.6%. A similar trend has been observed in all 10 top meme coins.
Not only does the decline affect individual tokens, but skepticism seems to be rising in the entire meme coin. Elon Musk, for example, is one of the most vocal people Doge’s supporter, recently compared meme coins to “casinos”. He further warned against investing lifesaving savings. At the same time, Cio Matt Hougan Pointing out that the current time is “the end of the meme coin boom.”
Google Trends data Further support for this weakened hype. Searches for “Meme Coin” fell from a peak of 100 in mid-January to just eight last week. This shows the rapid pace of public enthusiasm disappearing.
The effects of this downturn are felt throughout the ecosystem, especially the platform that flourished during the meme coin mania.
pump.fun, popular meme coin launcherits trading volume collapsed from $3.3 billion in January 2025 to just $814 million. This marks an astonishing 75.3% drop in the AA.
In addition, total Number of tokens created Fum.Fun has been steadily declining since late January. In addition, daily income has Falling sharply.
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