Memecoin Market Faces Sharp Decline After TRUMP, MELANIA, and LIBRA Launch

The once-booming memecoin sector has seen a sharp downturn following the launch of TRUMP and MELANIA tokens in January and the subsequent introduction of LIBRA in February, according to a recent CoinGecko report.

Memecoins Lose Momentum as Liquidity Dries Up

Initially, the TRUMP and MELANIA memecoins attracted massive investor attention, leading to a short-lived rally. However, the hype proved unsustainable, and market liquidity quickly drained from other memecoins, leading to a broad sector-wide crash.

The situation worsened with the launch of LIBRA, a controversial memecoin associated with Argentinian President Javier Milei. The token hit an impressive $4 billion market cap on launch day but crashed over 95% within hours, serving as the final trigger for the sector’s collapse.

Market Decline: 32% Drop in Market Cap, 72% Plunge in Volume

CoinGecko’s data reveals that:

• The memecoin market cap has fallen 32% since its peak on February 3rd.
• Trading volumes have dropped a staggering 72%, highlighting the lack of demand.

The report suggests that memecoins, once seen as community-driven and fair, have exposed insider manipulation, making traders more cautious.

The Future of Memecoins: Will the Strongest Survive?

Despite the recent memecoin meltdown, CoinGecko predicts that memecoins will remain part of the crypto ecosystem. However, only a tiny fraction (0.01%) of these tokens are expected to survive long-term.

In an era where attention is the currency, memecoins will need to continuously engage users and evolve beyond mere hype to remain relevant. Whether the next big memecoin will emerge or fade into obscurity remains to be seen.