The memecoins market collapses

The Memecoins market has not begun in the best way in 2025.

A sample of this is that the market capitalization of the Cryptocurrencies meme fell 56% after reaching a historical maximum (ATH) of 137,000 million dollars on December 8, 2024.

Before continuing, it is key to understand what these assets are. As explained in Cryptopedia, the educational section of cryptootics, memecoins pay tribute to pets, political or viral figures of the Internet. They do not solve any problems and are mainly used for financial speculation, which causes their price to rise or lower in minutes without a real foundation.

At the moment, Its market capitalization is 54,000 million dollars.

From this bearish trend does not escape Dogecoin (Doge), the longest memecoin and that works as a kind of reference in the market. Its price was $ 0.40 before Donald Trump’s presidential assumption, but is currently 0.20 dollars.

In the last month, its market capitalization has registered a 25% drop and has descended to ninth place among the most valuable digital assets. In November 2024, Doge occupied the sixth place, above Stablecoin USDC and XRP, the cryptocurrency issued by the Ripple company.

The problems for this market niche began after The launches of the official memecoins of US President Donald Trump (Trump) and his wife Melania (Melania).

What happens is that both tokens reached millionaire valuations and then collapsed, leaving the majority of investors with mass losses.

Trump was market in the prior to the presidential assumption of the Republican leader and a few hours reached a price of $ 75, his ATH. However, over the days its price collapsed to 4 dollars.

At the time of publication of this note, its price is $ 13.

However, the collapse of the Memecoins deepened with the Libra scandal, a token from the Solana network that was promoted by Argentine president Javier Milei. Its launch was full of anomalies and is considered by many as scam.

What happens is that Libra was presented as a project to encourage the growth of Argentine companies, PEro then it was discovered that utility is practically nil and, therefore, it was cataloged as a memecoin.

For this reason, Nic Carter, investor and bitcoiner, remarks that the memecoins time is over. “Memecoins’ trade was completely based on a statement that turned out to be a lie: that the casino was at least fair,” he says.

He also adds: “Milei’s coin was the most obvious test that people were playing in a manipulated market. But this is only the last of a series of unfair and dominated launches. The casino did not only have a slight advantage, but rather a 90/10 relationship in favor of the house. ”

Along the same lines, Jason Hamlin, a specialist in finance, believes that “the era of memecoins is dying,” and points out: “Although they have brought new users and enthusiasm to cryptocurrencies, its boom entails serious disadvantages that threaten the credibility, stability and long -term growth of the industry.”

According to Hamlin, these facts showed that memecoins “distort the markets, invite scams, undermine the promise of technology and interfere with market cycles by diverting and diluting liquidity, which otherwise would be allocated to promising projects with real utility”.

Carter states that, despite new releases and possible profits, The era of the memecoins is over due to the constant scandals that will take investors and the public. In addition, it warns that the use of privileged information in this market niche could generate legal problems, which would discourage both its creation and its adoption.

A more optimistic look

Specialists from the investment firm New York Digital Investment Group (NYDIG) have a different vision than that of Carter and Hamlin, and claim: “If the cycle continues, the memecoins could have a good performance, but that is due to their position in the market as the most speculative part of the risk curve of digital assets.”

To sustain their argument, they explain: “Equateing the memecoins with Bitcoin, as some do in the industry, is a lack of sincerity towards innovations and the utility that Bitcoin has introduced, aspects to which the rest of the industry must pay tribute, and it is an ignorance of practices within the memecoins industry.”

In this debate on the sustainability and future of this market niche, the analysis of Murad Mahmudov appears, better known as “The King of Memecoins.”

Precisely, He mentions that many Altcoins are market with the “inflated prices”something that “leaves little room for retailers to benefit.” In addition, he says:

“The cryptocurrency market has always revolved around speculation. Memecoins lead this to a more pure level, eliminating the false narrative of ‘innovative technology’ that justifies excessive valuations in Altcoins. [En cambio, las memecoins] They create passionate communities that act as unpaid evangelists. Its appeal is clear: they offer fun, hope, belonging and, sometimes, the possibility of getting rich quickly. ”

Murad Mahmudov, investor.