Memecoins Plunge 63% Despite Market Frenzy as New Tokens Flood the Scene

The top 10 memecoins, including Dogecoin and Shiba Inu, are down 63% on average as new safe-launch tokens capture attention and investor capital.

The once booming memecoin market is experiencing a sharp decline, with the top 10 memecoins—Dogecoin, Shiba Inu, Pepe, and others—down 63% on average. Despite the broader crypto market frenzy, new tokens launched on platforms like Pump.fun and BaseJump are drawing attention and funds, leaving legacy memecoins struggling to maintain their value.

Logos of major memecoins like Dogecoin and Shiba Inu, symbolizing the current downturn in their market value.

Key Points:

1. Top Memecoins Struggling: Legacy memecoins like Dogecoin, Shiba Inu, and Pepe are facing major declines, down an average of 63% from their yearly highs.

   
   

2. Rise of Safe-Launch Tokens: New token launch platforms such as Pump.fun have flooded the market, making it easier for traders to chase new "gems," diverting attention from older memecoins.

   
   

3. Increased Competition: Over 1.98 million new tokens have been launched since March, intensifying competition and leaving older memecoins overshadowed by a wave of speculative short-term coins.

   
   

4. Liquidity Concerns: Experts believe that the memecoin market is draining liquidity from more sustainable projects, threatening the long-term health of the crypto market.

Related: Bitcoin's Negative Funding Rate Sparks Bear Concerns, But Options Market Shows Resilience

Legacy coins struggle to keep investor attention as the meme coin market faces increasing competition from new safe-launch tokens. The decline of established meme coins signals a shift in the market, but meme coins remain a powerful force in the crypto space. Whether this trend marks the end of memecoin mania or just a temporary dip remains to be seen.

Source: Cointelegraph