The memecoin sector attracted significant attention in May 2024, leading the way in terms of market activity. This increase in activity is reflected in the price of memecoins, creating significant ripples throughout the market. However, recent bullish momentum has waned, as indicated by weakness in both price and market interest, fueling speculation about the end of memecoin season.
Memecoin dominance in alt markets is declining.
CT would be shifting from gambling to focusing on fundamentals, similar to a few years ago.
Pack it up lads, it’s over. pic.twitter.com/H5d81mRIJB
— Ki Young Ju (@ki_young_ju) June 19, 2024
According to Dune Analytics, memecoin’s 30-day relative strength is showing signs of weakening. Data shows prices have fallen more than 25% in the past month. Additionally, the issuance of new memecoins by celebrities has slowed down.
Source: Dune Analytics
One notable memecoin, Pepe, reached an all-time high (ATH) in late May, surpassing Dogwifhat (WIF) to become the third largest memecoin. Pepe also made a splash in the altcoin sector, surpassing Uniswap (UNI) and Polygon (MATIC) in market capitalization. However, Pepe has reduced prices by 7% in the past week. Other top memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) also saw double-digit declines in the same time frame.
Source: Coingecko
The celebrity-driven memecoin craze appears to have subsided. The beginning of June saw carpet pulling incidents in a number of celebrity-promoted tokens. For example, wrestling legend Hulk Hogan’s X account was hacked, leading to the launch of a memecoin that initially increased in price but then plummeted, causing significant losses to investors. Furthermore, the memecoin sector has seen the launch of many Trump-themed tokens, fueled by the hype surrounding US presidential candidate Donald Trump. However, one of these tokens is DJT, which was initially believed to be issued by Trump, but ZachXBT later identified Martin Shkreli as the person behind the project.
These events have contributed to the memecoin sector stagnating, with a marked decline in market activity and attention. The release of new memecoins and falling prices show that this sector is losing its appeal.
You can see memecoin price here.
Itadori
Bitcoin Magazine
