Memecoin Update: Memecoin Market Cap Crashes 56% in Just 3 Months – What’s Behind the Collapse?

Jakarta, Pintu News – According to Cointelegraph (5/3/25), in the past three months, the market capitalization of memecoin has plummeted by 56%, erasing all the gains made after Donald Trump’s victory in the US election in November 2024.

Memecoin Market Experiences Drastic Decline

According to CoinMarketCap data, the total market capitalization of memecoin as of March 5, 2025 stood at $54 billion, down from its peak of $124 billion on December 5, 2024.

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This decline has raised big questions about the future of memecoin, which previously dominated cryptocurrency trends throughout 2024.

With trading volumes plummeting by 26.2% in the past month, many investors have begun to doubt whether theecoin “supercycle” has ended.

Factors Causing the Collapse of the Memecoin Market

Some market analysts attribute the fall of memecoin to unstable global economic conditions, lack of regulation, as well as the rise of insider trading scandals.

Some celebrities and social media influencers have also been accused of exploiting the market by pumping up the price ofecoins before selling them for personal gain.

Anmol Singh, co-founder of Zeta Markets, calls this phenomenon a form of “blatant exploitation” that undermines retail investor confidence. Economic uncertainty due to the Trump administration’s policies was also cited as one of the main triggers for the bursting of theecoin “bubble”.

“Blatant exploitation occurs when celebrities, key opinion leaders, exclusive groups, and insiders attempt to drive up token prices by leveraging their influence, then take advantage of the retail traders they attract-fundamentally shaking the trust and confidence of retail investors.”

Dogecoin (DOGE) Still Dominates, but…

Despite the major downturn in the memecoin market, several major memecoins are still holding their own and are expected to consolidate. Dogecoin DOGE11.10%->Current DOGE PriceRp 2.48311.10%Market CapRp 914,37 TriliunTrading VolumeRp 74,07 TriliunCirculating SupplyRp 147,24 Miliar remains the king of memecoins with a 53% dominance of the total market capitalization.

Read also: Dogecoin Inches Higher Today (March 6, 2025) – Analysts Predict a 5X Surge Ahead!

DOGE currently has a market capitalization of $29.8 billion, followed by Shiba Inu SHIB6.42%->Current SHIB PriceRp 0,191107716.42%Market Cap-Trading Volume-Circulating Supply- with $7.7 billion and Pepe PEPE9.27%->Current PEPE PriceRp 0,105728349.27%Market Cap-Trading Volume-Circulating Supply- with 2.9 billion. In addition, the Official Trump memecoin (TRUMP), which received widespread attention, now ranks fourth with a market capitalization of $2.6 billion.

However, many analysts predict that only memecoins with a strong community base will survive, while others will lose relevance as market interest shifts.

The Future of Memecoin: Hype or Hope?

Some prominent figures in the crypto industry, such as Justin Sun (founder of Tron), are still optimistic about the future of memecoin, although they advise investors to be more cautious and only invest in established projects like DOGE.

However, the signs of a downturn are increasingly evident. Google Trends shows that searches for the keyword “memecoin” have dropped dramatically from a high of 100 in January to just 8 last week.

Memecoin launch platforms such as Pump.fun have also seen trading volumes drop from $3.3 billion in January 2025 to just $814 million, a drop of more than 75%.

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With this negative trend, investors are starting to question whether the memecoin era still has a future or if this is the end of the biggest speculative wave in crypto.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Is the Meme Coin Supercycle Over? Accessed March 6, 2025.
• Cointelegraph. Memecoin Market Cap Down 56% Past 3 Months-What’s Next? Accessed March 6, 2025.
• Cryptonomist. The Memecoin Suffer from the Crypto Market Crisis-56% from the Last Peak. Accessed March 6, 2025.