The memecoin market is in momentum and has lost more than 20% in the last few days and over 30% in 60 days, yet there is no exact fixed factor that is pulling the market in a downward direction.
Some major factors include the fading hype of memecoins, which helped the market expand to the verge in the last quarter of 2024, the sudden failure of dozens of memecoins has sparked concerns over their real-world usage, and some also say they are not serving the same purpose that crypto serves.
In the last two quarters of 2024, big projects that were later identified as bogus resulted in losses of more than $100 million, and a report published in the first week of 2025 argues the memecoin market lost more than $1 billion in scammy and Ponzi releases.
One of the most recent examples of memecoins’ failure can be seen in that earlier it reported the MELANIA memecoin, which had ties with the first lady of the United States, is facing allegations of insider trading and a few others.
Competition among Memecoins is hindering the market’s growth
It is worth noting that Dogecoin and Shiba Inu are one of the oldest coins in the market, with Doge topping all the memecoins, yet several other coins entered the market, but their major problem was major of them went out of the market, resulting in severe losses.
The increasing number of memecoins projects in the market has ultimately affected the trading volume, and the decline in volume has resulted in fear sentiments among investors.
According to data from CoinMarketCap, the market capitalization of the memecoin market was $44.56 billion, with a monthly loss of 7.64%, and the volume was $4.09 billion, down by 1.90% in a month.
There is no exact number of the total of memecoins in the market, but there are arguments that more than 15k memecoins are there in the market, but the most prominent of them being Dogecoin, Shiba Inu, Pepe, Official Trump, Bonk, Fartcoin, Floki, Dogwifhat, Brett, Pudgy Penguins, and Popcat.
Other than these, there are several other memecoins from which some of them belong to celebrities, political figures, and internet personalities.
Even after these massive rejections over the past few weeks, experts still see memecoins growing in the near future, and the mark of $1 trillion in market capitalization is likely to be achieved soon.
The launch of memecoins has continued to be one of the most contentious issues in the cryptocurrency space, drawing frequent condemnation from industry professionals and titans.
Some cryptocurrency personalities claim that memecoins introduced by well-known public figures and celebrities have no practical use and are frequently short-lived and abruptly disappear.
