December 18, 2024
Data from across the industry is showing a new trend in the market – the meme coin craze is on the wane. Although leading meme coins have maintained a steady performance level, several downward trends have emerged in the past month.
Some assets continue to see notable success, but the meme coin space is quietly declining across the board.
About a month ago, the meme coin space looked very different: these assets were in a strong bull market, outperforming leading altcoins. DWF Labs even launched a $20 million fund to support meme coin creators.
However, new data reveals growing cracks, with trading volumes in this space falling from the ~$30 billion range to less than $14 billion.
CoinMarketCap data also shows that leading meme coins have mostly maintained a steady performance this month. However, meme coins are known for their wild ups and downs, and they have a tendency to steal the spotlight from each other.
For example, earlier this month, FARTCOIN saw a 200% price increase, while older assets like DOGE fell sharply at the time. Similarly, POPCAT was one of the best performers in November, but it quickly started to fall behind the market. In other words, these big wins can distract from other losses. However, the market as a whole is quietly falling.
It is difficult to create a comprehensive narrative that accurately explains these trends. Perhaps high-profile scams like Hook Toah have contributed to the market’s lack of interest.
More data clearly reveals that most meme coin traders are losing money, at least on some platforms. For whatever reason, their market dominance against altcoins is declining dramatically.
While these trends are certainly worrying, it’s too early to claim that a meme coin bear market is imminent. For example, November’s trading data suggested that altcoin season was also imminent, but the actual rally never materialized.
These trends may also turn out to be temporary mirages. However, traders should be aware of these bearish signals.
