Memecoin may have died at the moment, but they will come back: CoinGecko

According to Bobby Ong, the co-founder of CoinGecko, interest in memecoins has significantly decreased after a series of failed launches and rug pull incidents that severely shook investors’ confidence. In the report on March 6, Mr. Ong pointed out that the metrics on the Pump.fun launchpad platform plummeted immediately after the Libra (LIBRA) rug pull. The number of new tokens created daily on this platform has decreased by over 90% compared to the peak in February. “The launch of TRUMP and MELANIA marked the ultimate peak of memecoin, as they drained liquidity and attention from other cryptocurrencies,” Ong commented.

This retreat is completely opposite to the boom period after the launch of President Donald Trump’s memecoin on January 18. At that time, Pump.fun platform recorded a record high weekly trading volume of 3.3 billion USD. However, since then, the trading volume on Pump.fun has decreased by 63% in just the period from January to February. Data from CoinMarketCap also shows that the total market capitalization of memecoins once reached a record high of 124 billion USD on December 5, but has now dropped to 54 billion USD. “If the introduction of these two coins is not enough to end the memecoin fever, then LIBRA is the final nail in the coffin, shattering the illusion that memecoins are fair projects. The incident has exposed internal groups and insiders profiting from the majority of investors,” Ong added. The launch of Libra, a cryptocurrency shared by Argentine President Javier Milei, witnessed internal teams withdrawing more than 107 million USD, causing the token value to drop by nearly 94% in just a few hours. Memecoin: Seasonal Trend and Long-Term Lesson He believes that memecoins are “seasonal” in nature, but there are still some projects that have the potential to survive through market fluctuations. In February, the on-chain analysis platform Santiment noted that the cryptocurrency market may be entering a healthier phase as interest in memecoins wanes, and funds are redirected back to core assets such as Bitcoin, Ether, and layer-1 altcoins. He predicts that the memecoin market may evolve into “an extreme case of the power law,” where 99.99% of projects fail, leaving only a few standout ones to emerge as leaders and survive in the long run. “Memecoins like DOGE, SHIB, and BONK have surpassed many market cycles and brought valuable lessons to meme coin creators who want to build sustainable assets,” Ong shared. He also emphasized that: “The most successful memes are those that have built a community like a cult - where members are extremely passionate about a common goal, not easily sold out, and have the ability to create content or stories naturally.”