The once-thriving meme coin market has suffered a severe blow, with its total market cap plunging by 46% over the past two months. Fueled by speculation and hype, the so-called meme coin super cycle appears to be unraveling. During the same period, the broader crypto market also faced a downturn, with a 10% decline in total market capitalization. According to CoinMarketCap, the meme coin sector dropped from $137 billion to $74 billion, returning to levels last seen in November 2024.
Is the Meme Coin Super Cycle Over?
Alongside the sharp drop in market cap, meme coin trading volume also witnessed a significant decline, tumbling 29% in the same timeframe. This has raised doubts about the validity of the so-called super cycle. WeRate co-founder Quinten Francois openly dismissed the concept, stating on X: “The meme coin super cycle is the most ridiculous thing I’ve ever heard.” Similarly, crypto influencer IcedKnife went as far as calling the entire meme coin rally a scam, reinforcing skepticism.
Over the past week, the top 10 meme coins all suffered double-digit losses, with Trump Coin (TRUMP) and Pudgy Penguins (PENGU) leading the decline, according to CoinGecko data.
Major Liquidations Shake the Market
Monday saw a massive liquidation event that sent shockwaves through the market. The collapse was triggered by U.S. President Donald Trump’s tariffs on Canada, Mexico, and China, which resulted in widespread losses across the crypto market. The total liquidations exceeded $2 billion, making it one of the most significant sell-offs in history. Bybit’s CEO estimated that the real damage could range between $8 billion and $10 billion.
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Investor Confidence Takes a Hit
Following the wave of liquidations, interest in new meme coin launches is expected to decline. Crypto analyst Kale Abe painted a bleak picture, stating, “After a $10 billion liquidation, no one is buying new meme coins. We’re stuck with what we have, and most of them are down 90%.”
However, not all investors are giving up. Meme coin trader Murad remains optimistic despite the downturn, declaring, “Get ready, the best year of your life is coming.” According to Arkham Intelligence, Murad’s portfolio took a 26% hit on Monday, yet he remains confident in a future recovery.
Is a Rebound Possible?
Despite the uncertainty, there are signs of resilience. CoinGecko data shows that the total meme coin market cap has rebounded by 4%. Among the top 10 meme coins, Floki (FLOKI), Pudgy Penguins (PENGU), and Dogecoin (DOGE) recorded the most notable gains. However, Trump Coin (TRUMP) continues its downward spiral.
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