A new report from crypto data aggregator CoinGecko suggests that the memecoin craze has peaked with the launch of the Official Trump (TRUMP) and Melania (MELANIA) digital assets.
CoinGecko says that the memecoin sector has significantly declined after President Donald Trump and his wife, First Lady Melania Trump, launched their respective memecoins in mid-January and the high-profile tokens soared in value before plummeting.
The report also says that memecoin Libra’s (LIBRA) launch in February contributed to the sector’s decline.
LIBRA is a crypto project initially backed by Argentinian President Javier Milei and surged to a market cap of over $4 billion on launch day before losing more than 95% of its value on the same day.
“It wasn’t obvious then, but the launch of TRUMP and MELANIA marked the top for memecoins as it sucked liquidity and attention out of all the other cryptocurrencies.
If the launch of both these coins wasn’t enough to end the memecoin mania, LIBRA was the final nail in the coffin, shattering the illusion that memecoins were ‘fair launches’ to reveal cabals and insiders profiting off almost everyone else.”
According to the report, the memecoin sector is experiencing a decline in market cap and trading volume.
“On CoinGecko, the meme category market cap has fallen by 32% since its peak on February 3rd, with volumes down an even more drastic 72%.”
However, the report says that memecoins are likely to remain a part of the crypto market for years to come.
“In an era where there is zero friction to launching a memecoin, attention is literally the product, and low quality memes are not going to go anywhere. Even ‘higher quality’ memes need to be constantly engaging users and retain attention. Those that do these may have a chance to survive.
In the long run, memecoins will probably follow an extreme case of power law, where 99.99% will fail. For the strongest 0.01% that rise to the top, who knows perhaps they may even get a government agency named after it.”
Generated Image: Midjourney
Credit: Source link
