Memecoins may be dormant for now, but they are expected to make a comeback: CoinGecko

Mar 8, 2025 - 15:43

Mar 27, 2025 - 17:19

Memecoins may be dormant for now, but they are expected to make a comeback: CoinGecko

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Memecoin activity surged following the launch of U.S. President Donald Trump’s TRUMP memecoin on January 18 but declined after the "Libragate" controversy.

Interest in memecoins has waned following a series of failed launches and rug pulls that have dampened investor confidence, according to CoinGecko founder Bobby Ong.

In a March 6 report, Ong noted that activity on the token launchpad Pump.fun dropped sharply after the Libra (LIBRA) rug pull, with newly created tokens and daily graduated tokens declining by over 90% from their February peak.

“The launch of TRUMP and MELANIA marked the peak for memecoins, as they drew liquidity and attention away from other cryptocurrencies,” Ong stated.

Pump and dump, Data, CoinGecko, Memecoin — *The memecoin market has taken a serious hit following the Libra launch. Source:* *CoinGecko*

Memecoin activity surged following the launch of U.S. President Donald Trump’s memecoin on Jan. 18, with Pump.fun reaching a record $3.3 billion in weekly trading volume. However, interest has since plummeted.

Trading volumes on Pump.fun dropped 63% from January to February, and CoinMarketCap data shows the total market capitalization of memecoins fell from an all-time high of $124 billion on Dec. 5 to $54 billion.

“If the launch of these coins wasn’t enough to end the memecoin mania, LIBRA was the final nail in the coffin,” said CoinGecko founder Bobby Ong. “It shattered the illusion of fair launches, exposing insider profits at the expense of regular investors.”

The LIBRA token, linked to Argentine President Javier Milei, saw insiders cash out over $107 million, wiping out nearly 94% of its value within hours.

Ong believes memecoins have always been “seasonal” but expects some to endure despite market fluctuations.

In February, on-chain analytics firm Santiment suggested that crypto markets were stabilizing as memecoin hype faded, with investor interest shifting back to Bitcoin (BTC), Ether (ETH), and other layer-1 altcoins.

Ong speculates that the market could follow an “extreme case of power law,” where 99.99% of memecoins fail while a select few survive and thrive.

“DOGE, SHIB, and BONK have weathered multiple market cycles and serve as examples for memecoin creators aiming for longevity,” Ong said.

“The most successful memecoins are backed by strong, cult-like communities—holders who are passionate about the cause, resistant to selling, and capable of generating organic content and narratives.”