The memecoin market has seen a sharp decline following a series of scandals, rug pulls, and poor launches, leading to waning investor confidence. However, industry experts, including CoinGecko founder Bobby Ong, believe that while memecoins are currently down, they are far from dead.
The Rise and Fall of Memecoins
The memecoin sector peaked in January 2025 following the launch of Donald Trump’s TRUMP memecoin on January 18, which drove massive liquidity into the market. However, this excitement faded quickly due to several high-profile failures, most notably the LIBRA rug pull, which shattered investor confidence.
According to CoinGecko’s March 6 report, token launchpad Pump.fun saw a 90% decline in activity following the LIBRA incident. This dramatic downturn signifies how quickly the market shifted from euphoria to skepticism.
“The launch of TRUMP and MELANIA marked the top for memecoins as it sucked liquidity and attention out of all the other cryptocurrencies,” said Ong.
Market Impact and Losses
Before the crash, memecoins had reached an all-time high of $124 billion in market capitalization on December 5, 2024. However, by March 2025, this number had dropped to $54 billion, reflecting a staggering 56% decline in just a few months.
Ong pointed to the LIBRA scandal, where insiders cashed out over $107 million, leading to a 94% drop in the token’s value within hours. This was the final blow that exposed the darker side of memecoin trading—where cabals and insiders profit at the expense of retail investors.
Is There Hope for a Memecoin Revival?
Despite the downturn, experts suggest that memecoins are cyclical in nature and will eventually make a comeback. According to Ong, memecoins were “always going to be seasonal”, meaning that while most will fail, some will endure through market cycles.
On-chain analytics platform Santiment has observed a shift in investor focus toward Bitcoin (BTC), Ethereum (ETH), and other layer-1 altcoins, indicating a healthier market cycle is emerging.
Ong speculates that the memecoin market could become an “extreme case of power law,” where 99.99% of projects fail, but a handful of dominant players will persist.
The Future of Memecoins
Not all memecoins are doomed. Some have managed to build strong communities, which is the key to longevity. DOGE, SHIB, and BONK are examples of memecoins that have survived multiple market cycles. Ong emphasized that successful memecoins thrive on strong, passionate communities that create viral content and narratives.
As the crypto market matures, memecoin creators will need to focus on community engagement, transparency, and sustainability to avoid the pitfalls that led to the current downturn.
Conclusion
While the memecoin market is in a slump, history suggests that speculative trends in crypto always return in new forms. Whether memecoins will regain their former glory depends on how the space evolves and whether projects can regain investor trust. For now, memecoins may be “dead,” but they’ll likely be back.
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