The memecoin surge that drove the 2024 crypto rally seems to be losing steam. Major players like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have dropped by an average of 63%, raising concerns about the sustainability of this trend.
The Game Has Shifted: New "safe-launch" platforms like Pump.fun and BaseJump are flooding the market with thousands of new tokens, making it easier for traders to participate. However, this influx is overshadowing older coins like DOGE and SHIB, which are struggling to maintain their positions. Since March, Pump.fun alone has launched 1.98 million tokens, with only 1.3% reaching significant milestones. According to Ilias Salvatore from Flooz, “Money flows where attention goes,” highlighting the chaotic nature of the memecoin market.
A "Slaughterhouse" Market: Experts like Evan Luthra caution that this frenzy is drawing attention and liquidity away from more meaningful blockchain projects. Luthra remarked, "Memecoins are mostly pumps and dumps; they don’t create inherent value," as concerns grow over liquidity across the wider altcoin space.
Looking Ahead: While the market has taken a hit, some analysts believe memecoins aren’t disappearing entirely. New platforms continue to emerge but are grappling with similar liquidity challenges. Meanwhile, blockchain innovators are encouraging a shift in focus towards real-world assets (RWAs) and AI-driven projects for long-term growth.
