Is the Memecoin craze fading? CoinGecko: They will eventually make a comeback!

Despite the recent decline in the Memecoin market's popularity, CoinGecko founder Bobby Ong believes that the decline of Memecoins is only temporary, and there is still a possibility of a return in the future. In January of this year, the market was once booming with the launch of TRUMP Memecoin by U.S. President Donald Trump, but interest from investors significantly decreased following the 'Libragate' incident and a series of failed launches.

Market popularity plummets

In a report on March 6, Ong pointed out that since the peak in February, the number of newly created tokens and daily graduate tokens on the token launch platform Pump.fun has plummeted by over 90%. The launch of Memecoins by Trump and Melania had siphoned off a lot of liquidity and attention, but the trading volume on Pump.fun has already dropped by 63% between January and February.

According to CoinMarketCap data, the total market capitalization of Memecoins reached an all-time high of $124 billion on December 5, but it has now fallen to $54 billion. Ong stated, 'If the launches by Trump and Melania were not enough to end the Memecoin frenzy, then LIBRA is the last straw that broke the camel's back.'

The impact of the Libra incident

Libra is a cryptocurrency 'shared' by Argentine President Javier Milei, and since its launch, insiders have cashed out over $107 million, leading to a 94% drop in the token's value within hours. This incident completely shattered the illusion of fair distribution for Memecoins, exposing the phenomenon of insiders profiting from it.

The seasonality of Memecoins

Ong pointed out that Memecoins 'always have seasonality,' but some tokens are able to survive in volatile market cycles. For example, tokens like DOGE, SHIB, and BONK have withstood the test of market cycles, providing valuable experience for future Memecoin creators.

Future outlook

Ong speculated that the market may be heading towards an 'extreme power law,' where 99.99% of Memecoins will fail, with only a few able to stand out. He emphasized that the most successful Memecoins often have cult-like communities that are extremely passionate about a cause and can organically create content or stories.