The memecoin market has erased all the features that adopted Donald Trump’s presidential victory in November 2024, having misplaced greater than half of its worth since December.
According to CoinMarketCap information, the entire market capitalization of memecoins stood at $54 billion on March 5, down 56% from $124 billion on Dec. 5, 2024.
The memecoin market has progressively declined after peaking at a record-breaking market cap of $137 billion on Dec. 8, briefly rising and dropping amid memecoin launches by Trump and First Lady Melania Trump in January.
Complete memecoin market capitalization up to now 12 months. Supply: CoinMarketCap
Some business observers have attributed the huge memecoin hunch to unstable world financial situations, in addition to lack of memecoin regulation, insider buying and selling scandals and endorsements by public figures.
Main memecoins are set for consolidation
The “memecoin bubble has burst” due to a couple vital elements, similar to financial uncertainty over the Trump administration and the combo of financial and overseas insurance policies within the US, Zeta Markets co-founder Anmol Singh informed Cointelegraph.
Singh additionally pointed to elevated involvement from celebrities and social media influencers, who’ve been accused of utilizing their affect to pump tokens earlier than promoting for revenue:
“Blatant exploitation as celebrities, key opinion leaders, cabals and insiders search to run up tokens by leveraging their affect after which take revenue on the retail merchants they create in — essentially shaking confidence and belief amongst retail individuals.”
Following a major sell-off, the memecoin market will probably see consolidation into the foremost memecoins whereas “others slowly fade out of relevance,” Singh predicted.
Dogecoin leads memecoin market at 53% dominance
Amongst “main memecoins,” Singh cited established memecoins similar to Dogecoin (DOGE), Pepe (PEPE), Bonk (BONK) and Dogwifhat (WIF), in addition to the Official Trump (TRUMP) memecoin.
“Most different memecoins received’t be fascinating for merchants, and that liquidity will go elsewhere,” Singh mentioned, suggesting that the remainder of memecoin capital will probably be distributed to perpetual futures, spot crypto investments and fiat.
The highest seven memecoins by market capitalization as of March 5. Supply: CoinMarketCap
The Zeta Markets co-founder additionally predicted that buyers would probably strategy new memecoin launches with extra warning going ahead.
Associated: House Democrats propose bill to ban presidential memecoins: Report
On the time of writing, Dogecoin — a favorite memecoin of Trump’s senior adviser Elon Musk — is the most important memecoin available on the market, accounting for 53% of the complete memecoin market cap, in accordance with CoinMarketCap information.
SHIB and PEPE rank the second and the third-largest memecoins, with the market caps amounting to $7.7 billion and $2.9 billion, respectively.
The Official Trump memecoin is at present the fourth-largest memecoin with a market cap of $2.6 billion.
Some distinguished crypto group figures like Tron founder Justin Solar have claimed that memecoins are the future of crypto, however known as for buyers to concentrate on well-established memecoins like DOGE.
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