TL;DR
- The memecoin boom peaked with the launch of TRUMP and MELANIA, but events like the LIBRA fraud triggered a massive decline in investor interest.
- Pump.fun, the epicenter of the memecoin frenzy, saw a 90% drop in token creation since February, highlighting the shift in market trends.
- Despite the crash, experts like Bobby Ong believe memecoins will remain a cyclical phenomenon, with some projects establishing themselves in the long run.
The memecoin market experienced an unprecedented surge in early 2025, fueled by the launch of TRUMP and MELANIA, cryptocurrencies inspired by the former U.S. president. This frenzy peaked in January when Pump.fun recorded an all-time high trading volume of $3.3 billion in a single week. The rise of memecoins was further amplified by social media hype, influencers promoting new tokens, and a flood of speculative capital entering the market. However, what seemed like the beginning of a new era for memecoins quickly crumbled.
The turning point came with the LIBRA scandal, a token allegedly linked to Argentine President Javier Milei. Within hours, insiders managed to withdraw over $107 million, causing the asset’s value to plummet by 94% and shaking investor confidence. From that moment, capital began flowing out of the sector, dragging the total market capitalization of memecoins down from $124 billion in December to just $54 billion today. This collapse exposed the fragility of many of these coins, which largely rely on speculation and short-term narratives.
The End of Memecoins or an Imminent Revival?
Despite the downturn, CoinGecko does not believe memecoins have disappeared; rather, they are undergoing a correction phase. Bobby Ong, the platform’s founder, points out that this market has always been cyclical, and only projects with solid foundations and dedicated communities will endure. Examples like Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk (BONK) have shown resilience, cementing themselves as more permanent assets in the crypto ecosystem. In fact, more than 600K tokens were created during the month of January alone.
Meanwhile, investor interest appears to be shifting back to Bitcoin and layer-1 altcoins. Santiment, an on-chain analytics firm, interprets the declining enthusiasm for memecoins as a possible sign of market maturation. However, history has shown that these assets can stage a strong comeback at any moment, especially during periods of heightened speculation.
The big question now is whether this cooldown is merely a pause before the next memecoin frenzy or if we are witnessing a definitive shift in the crypto industry. As always, investors must stay alert to changing narratives and the next big trend in the sector.
