Memecoins are likely dead for now, but they’ll be back: CoinGecko

Enthusiasm for memecoins appears to have cooled after a series of bad launches and rug pulls killing off investor interest, according to CoinGecko founder Bobby Ong. 

Metrics for token launchpad Pump.fun immediately plummeted following the Libra (LIBRA) rug, Ong said in a March 6 report, with newly created tokens and daily graduated tokens on the platform falling over 90% since their February peak.

“The launch of TRUMP and MELANIA marked the top for memecoins as it sucked liquidity and attention out of all the other cryptocurrencies.”

It’s a stark contrast from memecoin activity after the launch of US President Donald Trump’s memecoin on Jan. 18, when Pump.fun usage recorded an all-time high of $3.3 billion in weekly trading volume.

However, volumes on Pump.fun have since plunged 63% from January to February. CoinMarketCap data also shows the total market capitalization of memecoins hit an all-time high of $124 billion on Dec. 5, but has since dropped to $54 billion.

“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,” Ong added.

The launch of Libra, a cryptocurrency “shared” by Argentine President Javier Milei, saw insiders cash out over $107 million, wiping out nearly 94% of the token’s value within hours.

Related: Memecoin ‘retail mania’ could go the way of ICOs and NFTs, say execs

Ong says memecoins were “always going to be “seasonal” but that some would continue to survive the fluctuating market cycles.

In February, onchain analytics platform Santiment noted that crypto could be headed into a healthier market cycle as interest in memecoins waned and attention shifted back to Bitcoin (BTC), Ether (ETH) and other layer-1 altcoins.  

Ong speculates the market might be headed toward an “extreme case of power law,” where 99.99% fail and a few rise to the top and endure.

“The likes of DOGE, SHIB, and BONK have weathered market cycles and offer lessons for memecoin creators looking to build a longer-term asset,” Ong said.

“The most successful memes are those that have managed to build cult-like communities who are extremely passionate about a cause, who won’t sell and can create content or stories organically.”  

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