Memecoin Market Peaks with Trump and Melania Launches, Faces Sharp Decline
The memecoin market has experienced a significant shift in recent months, peaking with the launch of Official Trump (TRUMP) and Melania (MELANIA) digital assets before facing a sharp decline, according to a new report from CoinGecko.
Memecoin Market Reaches Peak
The memecoin craze hit its zenith in January 2025 when President Donald Trump and First Lady Melania Trump launched their own memecoins. These launches marked the high point of memecoin activity, with the market reaching unprecedented levels of interest and investment.
Sharp Decline Follows
Since the Trump and Melania launches, the memecoin market has seen a dramatic correction. CoinGecko's data shows that the meme category market cap has fallen by 32% since its peak on February 3, while trading volumes have dropped even more dramatically by 72% during the same period.
Impact of LIBRA
The memecoin sector's decline was further exacerbated by the launch of LIBRA (LIBRA) in February. This cryptocurrency, initially supported by Argentine President Javier Milei, saw its market value plummet by over 95% within hours of launch, wiping out nearly $4.4 billion.
Future Outlook
Despite the current downturn, the report suggests that memecoins will remain part of the cryptocurrency market in the future. However, it's predicted that 99.99% of memecoins will ultimately fail, with only a tiny fraction surviving and gaining prominence.
Market Dynamics
The memecoin market's volatility and speculative nature have led to significant price fluctuations. Established memecoins like DOGE, SHIB, and BONK have shown resilience, but the sector remains highly speculative.
Conclusion
The memecoin market's journey from peak to decline highlights the risks and opportunities in the cryptocurrency space. As the market evolves, investors are urged to exercise caution and conduct thorough research before engaging with these high-risk assets.
