The Decline of Meme Coins

Meme coins are experiencing significant losses.

• Dogecoin (DOGE): down 60% from its 2024 high
• Pepe (PEPE): down 73% from its all-time high
• Dogwifhat (WIF): down 88% from its peak

The launchpad and cultural hub Pump.fun has seen a 64.6% decline in token launches compared to its January peak. According to Dune data, the weekly graduation rate of tokens is at its lowest since July 2024, with the market cap graduation threshold increasing from $69,000 to $100,000.

This downturn has led some traders to think the meme coin market might be over. Loopify, a prominent figure in the crypto education space, believes the cycle has peaked.

Revenue Comparisons

In terms of revenue:
– OpenSea: generated $943 million since 2017
– Pump.fun: has generated over $574 million since January 2024

• Total earnings extracted from memes on Solana are estimated between $3.6-6.6 billion.

Critics, including Solana Bateman, allege that Pump.fun has exploited the market without contributing back, listening to calls for improved liquidity and better tokenomics.

Market Reactions

The decline has roots dating back to the launch of Donald Trump’s official meme coin, which triggered a market frenzy. However, launches like MELANIA led to major crashes, shifting market sentiment rapidly.
– TRUMP: down 85%
– MELANIA: down 94%

Recent launches often spiked then rapidly fell, contributing to trader losses. LIBRA, promoted by Argentine President Javier Milei, saw a drastic fall from a $1.17 billion market cap to $40 million in just hours.

Investigations into insider trading and allegations of a rigged system heightened skepticism towards meme coins, prompting investors to seek more stable alternatives. Portfolio manager Pranav Kanade anticipates a migration of capital from meme coins to select altcoins.

Future Outlook

Despite these challenges, some still believe in the viability of meme coins. 0xWinged, a meme coin trader, suggests the market may recover, pointing out that human nature is inclined to gamble, and with improving market liquidity, investments in meme coins could see a resurgence.

In summary, while many traders are moving to other investments, the allure of memes remains strong in the crypto landscape, hinting that meme coins are not yet finished.