The memecoin market has erased all the positive aspects that adopted Donald Trump’s presidential victory in November 2024, having misplaced greater than half of its worth since December.
According to CoinMarketCap knowledge, the whole market capitalization of memecoins stood at $54 billion on March 5, down 56% from $124 billion on Dec. 5, 2024.
The memecoin market has regularly 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 yr. Supply: CoinMarketCap
Some trade observers have attributed the large memecoin hunch to risky world financial circumstances, 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 important components, comparable to financial uncertainty over the Trump administration and the combination of financial and overseas insurance policies within the US, Zeta Markets co-founder Anmol Singh advised 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 bring about in — essentially shaking confidence and belief amongst retail individuals.”
Following a big sell-off, the memecoin market will possible see consolidation into the most important memecoins whereas “others slowly fade out of relevance,” Singh predicted.
Dogecoin leads memecoin market at 53% dominance
Amongst “main memecoins,” Singh cited established memecoins comparable to Dogecoin (DOGE), Pepe (PEPE), Bonk (BONK) and Dogwifhat (WIF), in addition to the Official Trump (TRUMP) memecoin.
“Most different memecoins gained’t be attention-grabbing for merchants, and that liquidity will go elsewhere,” Singh mentioned, suggesting that the remainder of memecoin capital will possible 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 possible 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 in the marketplace, accounting for 53% of your entire memecoin market cap, in line with CoinMarketCap knowledge.
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 referred to as for buyers to deal with well-established memecoins like DOGE.
Journal: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1
