The CEO of CryptoQuant, Ki Young Ju, stated that meme coin markets are "dead," as recent chain data showed that the dominance of meme coins in alternative coin markets has dropped to its lowest levels in several months.
This statement sparked controversy within the cryptocurrency community. Some suggested that the bottom is near, while others saw the increasing losses and shrinking liquidity as signs of a sharp downturn.
The dominance of meme coins has reached its lowest level since early 2024
CryptoQuant data shows that meme coin dominance in altcoin markets has steadily declined this year. It peaked at around 0.109 in November 2024. However, this metric now stands at 0.034, the same low level recorded in February 2024. This decline indicates a clear shift away from speculative meme tokens.
CoinGecko data reinforces this picture. The market cap across subcategories of meme coins saw a clear peak in late 2024 and early 2025, before entering a continuous decline. Annually, leading meme tokens have suffered heavy losses.
The price of Dogecoin (DOGE) recorded a decrease of 66.3%, while Shiba Inu (SHIB) dropped by 71.3%. The losses were more pronounced for Pepe (PEPE), which fell by 81.6%. Finally, Bonk (BONK) lost about 76% of its value during the same period.
Overall, the meme coin market has declined by 65.9% according to Artemis data. The meme coin sector on Solana was the most affected. Joao Weidson, the founder and CEO of Alfractals, noted that,
Joao Weidson stated that meme coins and altcoins in the Solana ecosystem are undergoing the worst phase — for many, they have simply become dead.
It was also confirmed that altcoins focused on payments remain resilient, indicating a divide between utility and speculation.
Why did meme coins 'die'?
Analysts have identified several reasons for the decline in meme coin dominance. One trader mentioned that extremely low-cost launches, which lack protection against fraudulent withdrawals, have undermined trust, community, and long-term holding, leaving only short-term profit.
Davy Abe said everyone can thank Pump Fun and Alon for that.. It was never supposed to cost less than $1 to launch meme coins without any protection against fraudulent withdrawals. We completely lost the sense of community and HODL due to exposure to fraudulent withdrawals many times. Trust is gone, and everyone just extracts a little, he published.
Solidus Labs' research showed that 98.7% of tokens launched on Pump Fun showed signs of pump and dump schemes. In contrast, activities on Raydium reveal that about 93% of liquidity pools, which equate to approximately 361,000 pools, show indicators typically associated with soft fraudulent withdrawals.
Analyst Miko Ohama added that the sector has become overcrowded.
The analyst said that the world does not have enough interest in 25,000,000 meme coins. Even with winners, 'investors' are losing money... because there is no investment in meme coins, there is only participation in the pump. You don't buy meme coins because you invest in them; you buy them because you believe they will rise, hoping to sell at the top. You don't care about the crime; you just want to be part of the crime, he clarified.
Will meme coins recover?
Despite the prevailing negativity, some believe that meme coins will recover. These individuals pointed to the decline in dominance as a sign of the potential to reach the bottom.
Gordon, the well-known commentator, said on platform X that critics of meme coins are 'short-sighted and have very low intelligence.' He confirmed that meme coins were the main driver of interest and trading volume in the crypto world, predicting a return of momentum in the future.
He stated that the only reason for all this interest in crypto is meme coins alone. The only reason any trading volume exists is meme coins. Meme coins will not disappear and will lead the next bull wave.
The meme coin market is currently at a crossroads. General market conditions, changes in investor sentiment, and the ability of legitimate projects to distinguish themselves from scams will determine how long the recovery or decline lasts.
