The CEO of CryptoQuant, Ki Young Ju, stated that the meme coin markets are 'dead', as recent on-chain data shows that the dominance of meme coins in the altcoin market has dropped to its lowest in months.
This statement has sparked a debate within the crypto community. Some suggest that the bottom is near, while others see the increasing losses and declining liquidity as signs of a strong downturn.
The dominance of meme coins reaches its lowest level since the beginning of 2024.
Data from CryptoQuant shows that the dominance of meme coins in the altcoin market has steadily decreased throughout this year. It peaked around 0.109 in November 2024. However, now the value stands at 0.034, at the lowest levels of February 2024. This drop signals a clear departure from the more speculative meme tokens.
Data from CoinGecko reinforces this view. The market capitalization across meme coin subcategories peaked clearly between the end of 2024 and the beginning of 2025, before starting a prolonged downward trend. On an annual basis, major meme coins have suffered heavy losses.
Dogecoin (DOGE) is down 66.3%, while Shiba Inu (SHIB) has lost 71.3%. The losses are even more pronounced for Pepe (PEPE), which has dropped 81.6%. Finally, Bonk (BONK) has shed 76% of its value in the same period.
Overall, the meme coin market has declined by 65.9%, according to data from Artemis. The meme coin sector of Solana has been particularly hard hit. Joao Wedson, founder and CEO of Alphractal, explained in detail that,
"Meme coins and altcoins in the Solana ecosystem have just hit their worst period— for many, they are simply dead."
He also emphasized that payment-focused altcoins remain resilient, indicating a clear distinction between utility and speculation.
Why are meme coins "dead"?
Analysts have detailed various reasons behind the decline in meme coin dominance. One trader argued that ultra-low-cost launches, without protection against rug pulls, have eroded trust, community, and long-term holding, leaving room only for short-term speculative interests.
You literally have to thank Pumpfun and Alon for this... It should have never cost less than 1 dollar to launch meme coins without any protection against rugs. We have completely lost the sense of community and HODL after being scammed so many times. No one trusts anymore, everyone just wants to extract value,” wrote DeFiApe on X.
In particular, research from Solidus Labs found that 98.7% of tokens launched on Pump.fun showed typical signs of pump and dump. In parallel, activity on Raydium reveals that about 93% of liquidity pools, or about 361,000 pools, show indicators commonly associated with soft rug pulls.
Analyst Mikko Ohtamaa also added that the sector has become too congested.
"There isn’t enough attention in the world for 25,000,000 meme coins. And even among the winners, 'investors' are losing money... Because there’s no investment in meme coins, there’s only participation in a pump. You don’t buy meme coins because you invest in them; you buy them because you think they will go up and hope to sell at the top. You don’t care about the crime, you just want to be part of the 'crime,'" observed the analyst on X.
Will meme coins recover?
Despite the negative climate, some remain convinced that meme coins will bounce back. They highlighted the drop in dominance as a signal of a possible bottom.
Gordon, a known commentator, stated on X that critics of meme coins are "extremely shortsighted and unintelligent." He emphasized that meme coins have been the main attraction and volume magnet in the crypto sector, predicting a future recovery.
"The only reason there is attention on crypto is meme coins. The only reason there is volume is meme coins. Meme coins will not disappear and will drive the next bull run," he stated.
For now, the meme coin market is at a crossroads. Whether we see a recovery or a decline will depend on the overall market conditions, changes in sentiment, and the ability of solid projects to distinguish themselves from scams.
