CryptoQuant CEO Ki Young Ju claims that memecoins are 'dead.' According to him, the latest on-chain data shows that the dominance of memecoins in the altcoin market has fallen to its lowest level in several months.
This opinion sparked a debate within the cryptocurrency community. Some suggest that the bottom is near, while others see increasing losses and decreasing liquidity as signals of a serious decline.
The dominance of memecoins has reached its lowest level since the beginning of 2024.
Data from CryptoQuant shows that the dominance of memecoins in the altcoin market has been steadily decreasing this year. It peaked in November 2024 at around 0.109. Now the rate is 0.034, corresponding to the lows of February 2024. This trend shows a clear flight from speculative meme-type tokens.
Data from CoinGecko confirms this market picture. The market capitalization in the subcategories of memecoins skyrocketed to peaks at the end of 2024 and the beginning of 2025. It then entered a clear downward trend. Year-on-year, top memecoins have suffered significant losses.
Dogecoin (DOGE fell) by 66.3%, while Shiba Inu (SHIB) lost 71.3%. Pepe (PEPE) recorded an even larger drop, losing 81.6%. Finally, Bonk (BONK) lost 76% of its value during the same period.
Overall, the memecoin market has dropped by 65.9% according to data from Artemis. The memecoin sector on Solana has been severely impacted. Joao Wedson, founder and CEO of Alphractal, noted that:
“Memecoins and altcoins in the Solana ecosystem have just hit the worst phase – for many, they are simply dead.”
He also noted that payment-focused altcoins remain resilient. This shows the divide between utility and speculation.
Why are memecoins “dead”?
Analysts listed several reasons for the decline in memecoin dominance. One trader stated that huge losses – without protection against rug pulls – undermined trust, community, and long-term holding of tokens. Currently, only short-term profit-taking matters. Therefore, DeFiApe wrote:
“You can really thank Pumpfun and Alon for this… It should never cost less than $1 to launch a memecoin without any protection against rug pulls. We completely lost the sense of community and HODL after so many rug pulls. No one trusts, everyone just takes profits.”
Interestingly, research by Solidus Labs showed that 98.7% of tokens released on Pump.fun exhibit characteristics of pump-and-dump schemes. At the same time, activity on Raydium shows that about 93% of liquidity pools, or about 361,000 pools, have indicators typical of soft rug pulls.
Analyst Mikko Ohtamaa added that the sector is oversaturated:
“There isn’t enough attention in the world for 25,000,000 memecoins. Even with winners, ‘investors’ are losing money… Because it’s not an investment in memecoins, it’s a participation in the pump. You don’t buy memecoins because you invest in them. You buy memecoins because you think there will be a pump and hope to sell at the peak. You’re not interested in the crime. You don’t want to be part of the crime.”
Will memecoins regain value?
Despite negative sentiment, some believe that memecoins will rebound. They point out that the decline in dominance may be a signal of a potential bottom.
Gordon, a well-known commentator, wrote on X that critics of memecoins are “incredibly short-sighted and have low IQ.” He emphasized that memecoins were a key driver of attention and volume in the crypto market. He predicts their return in the future:
“The only reason cryptocurrencies are in the spotlight is memecoins. The only reason there is any volume is memecoins. Memecoins are not going away and will lead the next bull run.”
Currently, the memecoin market stands at a crossroads. The direction – upward or downward – depends on the overall market situation, investor sentiment, and whether credible projects distinguish themselves from scams.
To read the latest market analysis of cryptocurrencies from BeInCrypto, click here.
