CryptoQuant CEO Joo Gi-young mentioned that the meme coin market has 'died' based on on-chain data. Recent data shows that meme coin market share has fallen to its lowest level in months within the altcoin market.
Such remarks have sparked controversy in the cryptocurrency community. While some report that the bottom is near, others interpret the accumulated losses and liquidity drop as serious bearish signals.
Speculative meme coins, market exit is clearly visible.
According to CryptoQuant's data, the market share of meme coins in the altcoin market has been continuously declining this year. It peaked at approximately 0.109 in November 2024. However, the current indicator has dropped to 0.034, similar to the low of February 2024. This shows that the market is clearly exiting speculative meme tokens.
CoinGecko's data supports this. The market capitalization of the meme coin sector peaked significantly at the end of 2024 and the beginning of 2025 before entering a long-term decline. Annually, major meme tokens have recorded substantial losses.
Dogecoin (DOGE) has dropped by 66.3%, while Shiba Inu (SHIB) has decreased by 71.3%. Pepe (PEPE) recorded a decline of 81.6%. Finally, Bonk (BONK) lost 76% of its value during the same period.
According to Artemis data, the entire meme coin market has dropped by 65.9%. The meme coin sector of Solana has been particularly hard hit. Joao Wedson, founder and CEO of Alphractal, stated the following.
"Meme coins and altcoins in the Solana ecosystem have reached the worst phase in history. In many cases, they have already completely disappeared from the market."
He pointed out that payment-focused altcoins are still maintaining their strength, highlighting the difference between usability and speculation.
Why did meme coins die?
Analysts have suggested various reasons for the decline in meme coin market share. One trader evaluated that projects launched cheaply without strong safeguards have lost trust, community, and long-term holding culture due to frequent scams.
"All of this is thanks to Pumpfun and Alon. The launch of meme coins without safeguards should not have been possible for under $1. Repeated rugs have completely destroyed trust in the community and the HODL spirit. No one trusts anymore, and everyone is just looking for short-term gains," said DeFiApe.
Notably, the findings from Solidus Labs are important. Traces of pump-and-dump fraud were detected in 98.7% of the tokens launched at Pump.fun. Simultaneously, looking at Raydium's activities, typical signs of soft rug were detected in about 93% of liquidity pools, specifically in approximately 361,000 pools.
Analyst Mikko Ohtamaa added that the market is overly saturated.
"There isn't enough attention in the world to pour into 25 million meme coins. Even the winning meme coins cause 'investors' to lose money. There is no concept of investment in meme coins. It's only about participating in the pump. The reason for buying meme coins is not for investment purposes; it's to sell at the peak, expecting a pump. I don't care about the legality. I just want to be part of a crime," stated the analyst.
Will meme coins rebound?
Despite the prevailing negative sentiment, some are confident about a rebound for meme coins. They mentioned that the decrease in dominance could be a signal of a bottom.
Prominent commentator Mr. Gordon claimed on X that meme coin critics are 'surprisingly shortsighted and lacking intelligence.' Mr. Gordon emphasized that meme coins were a major driver of attention and trading volume in the cryptocurrency market, predicting a revival in the future.
"The only reason attention is focused on cryptocurrencies is because of meme coins. The trading volume is generated thanks to meme coins. Meme coins will not disappear and will lead the next bull market," he said.
The current meme coin market is at a crossroads. Whether recovery continues or decline persists depends on the overall market conditions, psychological changes, and whether legitimate projects can succeed in distinguishing themselves from scams.
