States that Meme Coins are "Dead", but Many Still See Bounce Potential
The CEO of CryptoQuant, Ki Young Ju, has called meme coin markets "dead" as recent on-chain data shows that the dominance of meme coins in altcoin markets has fallen to multi-month lows.
This statement has sparked a debate within the cryptocurrency community. Some suggest that the fund is nearing its end, while others see increasing losses and dwindling liquidity as signs of a serious decline.
Meme Coin Dominance Reached Its Lowest Point Since Early 2024
CryptoQuant data shows that the dominance of meme coins in altcoin markets has continuously decreased this year. It peaked at around 0.109 in November 2024. However, the metric now sits at 0.034, matching the lows of February 2024. This decline signals a clear distancing from speculative meme tokens.
CoinGecko data reinforces this picture. Market capitalization in meme coin subcategories reached a clear peak in late 2024 and early 2025, before entering a sustained decline. On an annual basis, major meme tokens have suffered significant losses.
Dogecoin (DOGE) has fallen by 66.3%, while Shiba Inu (SHIB) has dropped by 71.3%. The losses are even more pronounced for Pepe (PEPE), which decreased by 81.6%. Finally, Bonk (BONK) lost 76% of its value in the same period.
Overall, the meme coin market has decreased 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, noted that,
“Meme coins and altcoins in the Solana ecosystem have just hit their worst phase; for many, they are simply dead.”
He also noted that payment-focused altcoins remain resilient, indicating a divide between utility and speculation.
Why did meme coins die?
Analysts outlined several reasons for the decline in meme coin dominance. One trader argued that ultra-cheap launches, lacking protection against scams, have eroded trust, community, and long-term holding, leaving only short-term farming.
“You can literally thank Pumpfun and Alon for this. It should have never cost less than $1 to launch memecoins without protection against scams. We completely lost the sense of community and HODL from being scammed so many times. No one has faith, everyone just farms,” posted DeFiApe.
Notably, a study by Solidus Labs found that 98.7% of tokens launched on Pump.fun showed signs of pump-and-dump schemes. Concurrently, activity on Raydium reveals that approximately 93% of liquidity pools, representing around 361,000 pools, show indicators commonly associated with soft scams.
Analyst Mikko Ohtamaa added that the sector has become too crowded.
“The world doesn’t have enough attention for 25,000,000 memecoins. And even with the winners, ‘investors’ lose money… Because there is no investment in memecoins, there is only participation in a pump. You don’t buy memecoins because you invest in them; you buy memecoins because you think they’re going to pump, and you hope to sell at the top. You don’t care about the crime; you want to be part of the crime,” commented the analyst.
Will meme coins recover?
Despite the prevailing negativity, some remain convinced that meme coins will recover. They pointed to the decline in dominance as a signal of a possible bottom.
Gordon, a well-known commentator, argued in X that critics of meme coins are “incredibly short-sighted and low-IQ.” He emphasized that meme coins have been a major driver of attention and volume in cryptocurrencies, predicting a future resurgence.
“The only reason there is attention in cryptocurrencies is because of meme coins. The only reason there is volume is because of meme coins. Meme coins are not going anywhere and will lead the next bull run,” he stated.
For now, the memecoin market is at a crossroads. Whether recovery or decline continues will depend on broader market conditions, changes in sentiment, and the ability of legitimate projects to differentiate themselves from scams.
