The memecoin market is experiencing a pretty dramatic crash, with its total market cap dropping by 46% over the last two months.
What was once the talk of the town, the so-called memecoin supercycle, is now unraveling faster than one can imagine
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Is this memecoin supercycle it’s in the room with us now?
During this same period, the crypto market didn’t escape unscathed either, shedding about 10% of its total value, but memecoins have seen their market cap shrink from $137 billion down to just $74 billion.
Trading volumes are also taking a hit, plummeting by 29% in this timeframe, and this has led many to question whether the hype surrounding the memecoin supercycle was just that, hype.
Quinten Francois, co-founder of weRate, didn’t hold back, calling the whole supercycle concept the biggest BS he’ve ever heard on X.
Another crypto influencer, IcedKnife, went even further, labeling the entire memecoin rally as a scam.
the meme coin supercycle was a scam after all pic.twitter.com/RsEhD8tMiy
— Iced (@IcedKnife) February 3, 2025
No land for weak fundamentals
Even in just the past week, the top ten memecoins have suffered double-digit losses. The official Trump and Pudgy Penguins coins took some of the hardest hits.
Things got even crazier on Monday when President Trump slapped tariffs on Canada, Mexico, and China, triggering what some are calling the worst liquidation event in crypto history. Total liquidations soared past $2 billion, with major crypto assets feeling the burn.
Bybit’s CEO estimates that liquidations could have reached between $8 billion and $10 billion.
Crypto analyst Kale Abe pointed out that after such massive liquidations, interest in new memecoin launches is likely to tank.
“After $10 billion in liquidations, NO ONE is gonna buy new memecoin launches. We’re stuck with existing coins and those are down 90%.”
Hopium squared?
But not everyone’s throwing in the towel just yet! Memecoin investor and analyst Murad remains upbeat despite his portfolio taking a 26% hit on Monday.
“Buckle up, the best year of your life is coming!”
Just when it seemed like all hope was lost, some diplomatic news brought a glimmer of relief, as Mexican President and Canadian Prime Minister reached an agreement with Trump to postpone a potential trade war.
This news sparked a sharp recovery across the market, Bitcoin briefly shot back above $100,000, and memecoins began to bounce back too.
