The memecoin market has significantly declined since its peak, erasing all gains made following the November 2024 presidential election. Since December, its value has plummeted by over half.

According to CoinMarketCap, the total memecoin market capitalization was $54 billion on March 5th, a 56% decrease from $124 billion on December 5th, 2024. The market peaked at $137 billion on December 8th, experiencing brief fluctuations following memecoin launches by Donald and Melania Trump in January.

Total memecoin market capitalization in the past year. Source: CoinMarketCap

Industry experts attribute this substantial downturn to several factors: volatile global economic conditions, a lack of memecoin regulation, insider trading scandals, and endorsements from public figures.

Market Consolidation Expected

Zeta Markets co-founder Anmol Singh told Cointelegraph that the "memecoin bubble has burst," citing economic uncertainty surrounding the Trump administration's policies as a key contributor. Singh also highlighted the problematic influence of celebrities and social media influencers who allegedly manipulate token prices for personal profit:

“Celebrities, key opinion leaders, and insiders are blatantly exploiting their influence to inflate token prices before selling, eroding trust among retail investors.”

Singh predicts market consolidation, with major memecoins surviving while others lose relevance.

Dogecoin Dominates

Singh identifies Dogecoin (DOGE), Pepe (PEPE), Bonk (BONK), Dogwifhat (WIF), and the Official Trump (TRUMP) memecoin as major players. He suggests that remaining memecoin capital will likely flow into perpetual futures, spot crypto investments, and fiat assets.

The top seven memecoins by market capitalization as of March 5. Source: CoinMarketCap

Singh anticipates increased investor caution regarding new memecoin launches.

At the time of writing, Dogecoin—favored by Trump's senior advisor Elon Musk—holds the largest market share at 53%, according to CoinMarketCap. SHIB and PEPE follow, with market caps of $7.7 billion and $2.9 billion respectively. The Official Trump memecoin ranks fourth, with a $2.6 billion market cap.

While figures like Tron founder Justin Sun see memecoins as the crypto future, they advise focusing on established options like DOGE.