The meme coin market has suffered a large downturn, with its whole market capitalization plummeting by 46% over the previous two months. As soon as fueled by hypothesis and hype, the so-called “meme coin supercycle” now seems to be unraveling.
Throughout the identical interval, the broader crypto market additionally confronted vital losses, shedding 10% of its whole market cap.
Meme Coin Supercycle Falls Aside?
In line with CoinMarketCap, the whole market cap of meme cash has plunged from $137 billion to $74 billion in simply two months, returning to ranges final seen in November 2024.
Buying and selling volumes have additionally declined sharply, dropping by 29% in the identical interval. These market actions have led many to query the legitimacy of the meme coin supercycle.
“Meme coin supercycle” is the largest bullshit I’ve ever heard,” weRate’s co-founder Quinten Francois wrote on X (Previously Twitter)
Equally, one other crypto influencer, IcedKnife, labeled the complete meme coin rally as a rip-off, reinforcing the rising skepticism.
Notably, even over the previous week, the highest 10 meme cash have posted double-digit losses. Official Trump (TRUMP) and Pudgy Penguins (PENGU) suffered the steepest declines, in keeping with CoinGecko.
The sell-off intensified on Monday when President Donald Trump imposed tariffs on Canada, Mexico, and China. This triggered the worst liquidation occasion in historical past. Complete liquidations exceeded $2 billion, with all main crypto belongings recording losses.
That’s not all. In line with the estimates from Bybit’s CEO, crypto liquidations may have totaled between $8 billion and $10 billion.
This liquidity crunch additional shook investor confidence in meme cash. Crypto analyst Kale Abe steered that after vital liquidations, curiosity in new meme coin launches would seemingly decline.
“After $10 billion in liquidations, NO ONE is gonna purchase new meme coin launches. We’re caught with present cash and people present cash are down 90%,” Abe posted on X.
Nonetheless, the pessimism was not shared by all. Meme coin investor and analyst Murad remained optimistic.
“Buckle up, one of the best 12 months of your life is coming,” Murad said.
This adopted the Monday wipeout, when his portfolio dropped by 26%, in keeping with Arkham Intelligence.
Simply because the market appeared to be in free fall, a diplomatic breakthrough offered much-needed aid. The Mexican President and the Canadian Prime Minister reached an settlement with President Trump to postpone a possible commerce conflict.
The information triggered a pointy market-wide restoration. Bitcoin (BTC) surged again above $100,000. Moreover, meme cash noticed a resurgence.
In line with CoinGecko, their whole market cap appreciated by simply over 4%. The highest 10 meme cash rallied by double digits, besides TRUMP. Floki (FLOKI), Pengu, and Dogecoin (DOGE) emerged as the largest gainers up to now 24 hours.
Disclaimer
In adherence to the Belief Mission pointers, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to supply correct, well timed info. Nevertheless, readers are suggested to confirm info independently and seek the advice of with an expert earlier than making any choices based mostly on this content material. Please notice that our Phrases and Situations, Privateness Coverage, and Disclaimers have been up to date.