Are Meme Coins Dead? The Rise, Fall, and Possible Revival: CoinGecko Report

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Meme Coins have taken a significant hit following a series of rug pulls and failed launches, raising the question: Are they gone for good, or is this just another phase in their cyclical history?

The Rise and Fall of Meme Coins

Interest in meme coins skyrocketed earlier this year, particularly after the Jan. 18 launch of the TRUMP token. This surge drove weekly trading volume on the launchpad Pump.fun to an all-time high of $3.3 billion. However, the momentum was short-lived. The LIBRA collapse, which resulted in a rug pull that wiped out nearly 94% of the tokenâ€™s value within hours, triggered a sharp decline in meme coin activity.

Also read: Best Meme Coins to Watch

Following the LIBRA debacle, new token launches and daily graduated tokens on Pump.fun plummeted by over 90%. CoinMarketCap data also shows that the total market capitalization of these tokens fell drastically, from its peak of $124 billion in December to just $54 billion.

What Went Wrong?

The spectacular rise and fall of TRUMP and LIBRA coins exposed major vulnerabilities in the meme coin space. The TRUMP and MELANIA coins siphoned liquidity from other cryptocurrencies, causing investor attention to shift. The LIBRA launch shattered investor trust, revealing how insiders cashed out over $107 million while leaving ordinary investors at a loss.

CoinGecko co-founder Bobby Ong noted that meme coins were always destined to be seasonal assets, thriving during hype cycles but struggling to maintain long-term stability and value.

Also read: Meme Coins Lose $70 Billion Since December â€“ Whatâ€™s Next?

Will Meme Coins Survive?

Despite the current downturn, history suggests that meme coins are far from extinct. Ong speculates that the market may follow an â€œextreme case of power law,â€ where 99.99% of these tokens fail, but a select few endure.

Successful projects like Dogecoin (DOGE), Shiba Inu (SHIB), and BONK have weathered multiple market cycles. Their resilience is largely due to their strong communities, which remain loyal and continue to drive engagement and narrative-building around their preferred tokens.

Crypto analysts suggest that the decline in meme coin mania could actually be a positive sign for the broader cryptocurrency market. According to on-chain analytics platform Santiment, investor interest is shifting back to Bitcoin (BTC), Ethereum (ETH), and other layer-1 altcoins, indicating a healthier market cycle ahead.

Also read: The Rise of AI Meme Coins Explained

While meme coins are currently struggling, they may still have a futureâ€”especially if new projects can foster strong communities, maintain compelling narratives, and implement fair launch mechanisms. For now, investors should remain cautious, stay informed, and watch for new opportunities as the crypto market continues to evolve.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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