CoinGecko, a cryptocurrency data tracker, says the recent hype around memecoins has officially fizzled. They point to the launch of the Trump (TRUMP) and Melania (MELANIA) tokens in mid-January as the turning point.
The Trump Effect (and Melania’s Too)
These high-profile tokens saw a massive initial surge in value, but then crashed hard. CoinGecko claims this sucked the life out of the rest of the memecoin market. They weren’t alone, though.
Another Nail in the Coffin: Libra’s Crash
The launch of another memecoin, Libra (LIBRA), in February, only worsened the situation. Backed by Argentinian President Javier Milei, LIBRA briefly reached a market cap of over $4 billion before losing over 95% of its value in a single day. CoinGecko believes this event completely shattered the idea that memecoins were fairly launched and highlighted the insider profits at the expense of regular investors.
The Memecoin Market Crash
The report shows a significant drop in the memecoin market. Since its peak on February 3rd, the market cap has fallen by 32%, and trading volume is down a whopping 72%.
The Future of Memecoins: A Power Law Predicament
Despite the crash, CoinGecko believes memecoins aren’t going away anytime soon. The ease of creating them means they’ll likely stick around, but the vast majority will fail. They predict a “power law” scenario where a tiny fraction (0.01%) will succeed while the rest (99.99%) will vanish. Those few survivors might even become so influential that a government agency could be named after them one day!
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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