Memecoins Crash in Popularity, Losing 50% of Interest Since January Peaks

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?

Demand for Memecoins Keeps Dropping

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.

Should the volume continue to drop, memecoins’ prices might see a prolonged downturn.

The fading memecoin hype is also reflected in activity on the Solana-based token generation platform Pumpfun.

According to Dune Analytics, Pumpfun’s daily trading volume dropped to $270 million on Feb. 13, marking a 50% decline from its Jan. 22 peak.

A similar trend is visible in token creation, with only 47,312 new tokens minted that day—a 30% drop from January’s peak levels.

Some Are Recovering

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?