The memecoin market has hit a rough patch, but according to CoinGecko co-founder Bobby Ong, this downturn is just another phase in its cyclical nature. The excitement around memecoins skyrocketed following the launch of the TRUMP memecoin on January 18, yet it quickly deflated after the "Libragate" scandal sent shockwaves through the market.
The Rise and Fall of Memecoins
The launch of Pump.fun, a Solana-based platform that enabled easy creation of memecoins, fueled an explosion of new tokens. At its peak, Pump.fun saw weekly trading volumes reach $3.3 billion, and total market capitalization for memecoins hit an all-time high of $124 billion in December 2024. However, in just a few months, those numbers have plummeted.
A major factor in this decline was the LIBRA rug pull, which revealed how insiders profited at the expense of retail investors. The collapse of LIBRA, a token linked to Argentine President Javier Milei, wiped out 94% of its value within hours, with insiders cashing out over $107 million. This event severely damaged trust in the fairness of memecoin launches and sent investor confidence spiraling.
Solana’s role in the memecoin boom has been undeniable. The network’s low fees and high-speed transactions made it the perfect breeding ground for speculative tokens. However, the rise of scams and unethical token launches on Pump.fun led to regulatory scrutiny. In December 2024, the UK Financial Conduct Authority (FCA) blocked access to the platform, signaling growing concerns over fraud in the space.
The surge in questionable token launches also harmed Solana’s reputation. Analysts noted a shift in sentiment, with crypto communities on Reddit and Twitter (X) voicing concerns about the increasing prevalence of rug pulls and exploitative token schemes. This coincided with a sharp decline in Solana’s price—down 9% in February 2025—while active user numbers dropped significantly.
What Comes Next?
Despite the current downturn, Ong suggests that memecoins are far from dead. He argues that while 99.99% of tokens will fail, a select few will endure market cycles and establish themselves as long-term assets.
Examples like DOGE, SHIB, and BONK illustrate that memecoins with strong communities and viral appeal can survive beyond initial hype cycles. Successful memecoins tend to form cult-like followings, where users remain engaged not just for financial gain but for cultural and ideological reasons.
Remember when many were trying to convince us that this was a Memecoin Cycle?
— Shiro (@CryptoShiro_) March 7, 2025
That the Bull Run would be all about Memecoins?
Here’s the state of Memecoins over the past 90 days.
This includes only Memecoins in the top 100 by market cap (excluding $TRUMP, which wasn’t released… pic.twitter.com/TY3OqagxTn
Moreover, with mainstream crypto interest shifting back toward Bitcoin, Ethereum, and layer-1 altcoins, the memecoin craze may be entering a cooldown phase rather than a permanent decline. If history is any indication, the next major cultural or political event could reignite interest, bringing memecoins back into the spotlight.
For now, traders and investors should exercise caution and remain aware of the risks, as the industry adapts to new market conditions.
HODL Team
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