With declining liquidity and hype, memecoins may be at a turning point | Credit: Hameem Sarwar
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Key Takeaways
As prices fell, the broader memecoin market cap dropped from $100 billion.
The number of memecoins created daily has also declined alongside trading volume.
Some cryptos have recovered from the recent lows but not yet at last month’s height.
Memecoins have seen a sharp decline in investor interest, with data showing a 50% drop in mindshare reaching a high level in January.
Once the hottest trend in the market, these tokens are now struggling to maintain momentum. This development is due to falling demand and dwindling liquidity in the market.
Does this signal the end of the frenzy, or will the memecoin mania come to play this cycle again?
In 2024, the memecoins outperformed almost every sector of the crypto market. This dominance extended into January as the total market cap of these assets surged above $100 million.
The hike in January happened due to the rise in PolitiFi tokens, especially since it was the same month as Donald Trump’s inauguration. Besides these tokens, demand for AI-themed memecoins also surged, driving the market cap and trading volume higher.
However, as of this writing, the market cap and volume of memecoins have dropped by an average of 50%. This decline could be linked to the decline in the price of several assets in this category.
For example, the Official Trump (TRUMP) token, which saw an explosive rally last month, has plunged nearly 80% from its peak. Similarly, AI-themed memecoins like ai16z (AI16Z), which hit an all-time high during the same period, have suffered an equivalent decline.
However, it remains uncertain if memecoins will continue to see their prices fall.
Despite the broader decline in memecoin interest, a few tokens show signs of resilience. In the last 24 hours, the Official Trump (TRUMP) token has surged by 17%, Dogwifhat (WIF) has jumped 21%, and Fartcoin (FARTCOIN) has gained 10%.
In Other Development…
In addition, the next phase of memecoin season may not continue on Solana but on the BNB Chain. This speculation comes from the recent launch of Test Token (TST) on the network, indicating growing activity on the blockchain.
Apart from TST, former Binance CEO Changpeng Zhao (CZ) also “allowed” the launch of memecoins after revealing his dog’s name., suggesting that BNB memecoin season might continue.
But lately, ‘CZ’ recently hinted at reducing his activity on X, citing frequent misinterpretations of his posts. Given CZ’s influence in the crypto space, a decline in his engagement could have ripple effects—particularly on the tokens, which often thrive on social media-driven hype.
If his reduced presence dampens sentiment, could this stall the potential memecoin resurgence on BNB Chain and other chains as well?
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
