In short
In just one month, meme coin trading volume plummeted from $30 billion to below $14 billion.
Leading meme coins performed mediocrely, while a few outlier coins like FARTCOIN showed brief strong performance.
Notable scams and a decline in market dominance may lead to decreased interest from traders and a downturn in industry performance.
Data across the entire industry shows a new market trend - the meme coin craze is declining. Although leading meme coins have maintained stable performance levels, several bearish trends emerged last month.
Certain assets are still achieving remarkable success, but the meme coin sector is quietly declining overall.
Is the winter of meme coins approaching?
About a month ago, the meme coin sector looked entirely different: these assets were in a fierce bull market, outperforming top altcoins. DWF Labs even launched a $20 million fund to promote the development of meme coin creators.
However, new data shows that the gap is widening, as trading volumes in the sector have dropped from about $30 billion to below $14 billion.
CoinMarketCap data also shows that leading meme coins have performed relatively flat this month. Nevertheless, meme coins are known for their extreme volatility, often overshadowing other coins.
For example, earlier this month, FARTCOIN saw a 200% price increase, while older assets like DOGE experienced significant declines at that time. Similarly, POPCAT performed the best in November but soon began to lag behind the market. In other words, these huge successes can distract attention from other losses. However, the overall market is quietly underperforming.
It is difficult to create a comprehensive narrative to accurately explain these trends. Perhaps high-profile scams like Hawk Tuah contributed to the reduction in market interest.
More data clearly indicates that most meme coin traders are losing money on at least some platforms. For whatever reason, their dominance in the altcoin market is sharply declining.
While these trends are indeed concerning, it is too early to assert that a bear market for meme coins is imminent. For example, trading data from November indicated that the altcoin season was also approaching, but the actual rebound failed to materialize.
Perhaps these trends are just temporary illusions. However, traders should pay attention to these bearish signals.
