Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Memecoin market faces significant decline

Memecoin market faces significant decline

GrafaGrafa2025/03/06 06:10
By:Isaac Francis

The memecoin market has experienced a significant downturn, with its total market capitalisation plummeting to $54 billion as of March 5, 2025.

This represents a 56% decline from the $124 billion recorded on December 5, 2024, and a peak of $137 billion on December 8, 2024.

Industry observers attribute this slump to volatile global economic conditions, lack of regulation, insider trading scandals, and endorsements by public figures.

Anmol Singh, co-founder of Zeta Markets, noted that "the memecoin bubble has burst" due to economic uncertainty and excessive involvement from celebrities and influencers.

"Blatant exploitation as celebrities, key opinion leaders, cabals and insiders seek to run up tokens by leveraging their influence and then take profit on the retail traders they bring in — fundamentally shaking confidence and trust among retail participants," Singh stated.

The market is expected to consolidate around major memecoins such as Dogecoin (CRYPTO:DOGE), Shiba Inu (CRYPTO:SHIB), and the Official Trump (CRYPTO:TRUMP) memecoin.

Dogecoin currently dominates the market with a 53% share, followed by Shiba Inu and Pepe (CRYPTO:PEPE).

Singh predicts that other memecoins will gradually lose relevance as liquidity shifts to more established cryptocurrencies or fiat currencies.

Investors are likely to approach new memecoin launches with increased caution moving forward.

Despite the downturn, memecoins remain a notable sector in the cryptocurrency market, though their volatility and speculative nature raise concerns about their sustainability.

The recent decline has erased all gains made following Donald Trump's presidential victory in November 2024, highlighting the sector's sensitivity to external factors.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!