Memecoin Mania Fizzles Out After Trump and Melania Coin Launches, Says CoinGecko Report
A recent analysis from CoinGecko reveals that the once-booming memecoin market appears to have reached its peak, largely following the launches of the TRUMP and MELANIA digital tokens in January.
These coins, associated with former U.S. President Donald Trump and First Lady Melania Trump, initially saw a significant surge in value before experiencing sharp declines. According to the report, these high-profile token releases drained attention and capital from the broader memecoin market, signaling the beginning of its downturn.
The memecoin sector’s decline was further intensified by the February launch of LIBRA, a project linked to Argentinian President Javier Milei. LIBRA’s debut was initially marked by a market cap surge of over $4 billion, only to collapse by more than 95% in a matter of hours. CoinGecko suggests that the combined impact of these events played a pivotal role in extinguishing the memecoin craze, shattering the perception of “fair launches” and exposing hidden profit motives behind these projects.
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The overall market for memecoins has since experienced a substantial downturn. CoinGecko reports that the sector’s market cap has dropped by 32%, with trading volumes plummeting a dramatic 72% since reaching their peak on February 3rd. Despite these losses, the report suggests that memecoins will likely remain embedded in the crypto landscape, driven by the easy accessibility of launching new tokens and the ever-present demand for attention in the space.
Though most memecoins are expected to fade into obscurity, CoinGecko predicts that a select few may endure. The future of these tokens will likely follow a power law distribution, where the vast majority will fail, but the survivors could potentially gain significant influence. The strongest coins, they speculate, could even achieve such prominence that they might inspire government entities named after them.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
