The meme coin market has attracted great attention in recent years and has been followed by many investors. However, recent data shows that there may be a significant change in this market. While leading meme coins maintain their stability, there is a significant decrease in transaction volumes and market dominance. So, is the end of the meme coin projects that investors follow with interest approaching? Here are the details…
A month ago, the meme coin market was under intense bull market influence. These assets were rising, leaving altcoins behind, and offered investors great earning opportunities. For example, DWF Labs launched a $20 million fund to support meme coin projects. However, when looking at current data, trading volumes have decreased from $30 billion to less than $14 billion. In addition, CoinMarketCap data also shows that leading meme coins have performed largely sideways in the past month. However, due to the nature of meme coins, it is normal for this market to experience fluctuations. For example, FARTCOIN gained 200% this month, while DOGE experienced a significant loss in value during the same period.
The meme coin market is experiencing significant losses not only in trading volumes but also in market dominance. While leading meme coins had a strong dominance over altcoins in previous months, this dominance has now significantly decreased. CryptoQuant data shows that many investors have lost money from meme coin trading. One of the reasons for this decline is high-profile scams such as Hawk Tuah. Such rug pull scams negatively affect market dynamics by undermining investor confidence. In addition, the emergence of altcoins as a more reliable investment alternative is another factor that has reduced interest in meme coins.
Analysts are divided on whether the current data signals the start of a bear season or a temporary lull. Last month, expectations for the start of an altcoin season were dashed. Similarly, it is not yet clear whether the bearish signals in the meme coin market are permanent.
Many investors continue to trust the market dynamics, saying, “Maybe this is just a temporary illusion.” However, it is also true that bearish signals should not be ignored and a careful strategy should be followed. The future of the meme coin market will depend on whether these assets can recover.