The meme coin market has suffered a massive downturn, with its total market capitalization plummeting by 46% over the past two months. Once fueled by speculation and hype, the so-called “meme coin supercycle” now appears to be unraveling.
During the same period, the broader crypto market also faced significant losses, shedding 10% of its total market cap.
Meme Coin Supercycle Falls Apart?
According to CoinMarketCap, the total market cap of meme coins has plunged from $137 billion to $74 billion in just two months, returning to levels last seen in November 2024.
Trading volumes have also declined sharply, dropping by 29% in the same period. These market movements have led many to question the legitimacy of the meme coin supercycle.
“Meme coin supercycle” is the biggest bullshit I’ve ever heard,” weRate’s co-founder Quinten Francois wrote on X (Formerly Twitter)
Similarly, another crypto influencer, IcedKnife, labeled the entire meme coin rally as a scam, reinforcing the growing skepticism.
Notably, even over the past week, the top 10 meme coins have posted double-digit losses. Official Trump (TRUMP) and Pudgy Penguins (PENGU) suffered the steepest declines, according to CoinGecko.
The sell-off intensified on Monday when President Donald Trump imposed tariffs on Canada, Mexico, and China. This triggered the worst liquidation event in history. Total liquidations exceeded $2 billion, with all major crypto assets recording losses.
That’s not all. According to the estimates from Bybit’s CEO, crypto liquidations could have totaled between $8 billion and $10 billion.
This liquidity crunch further shook investor confidence in meme coins. Crypto analyst Kale Abe suggested that after significant liquidations, interest in new meme coin launches would likely decline.
“After $10 billion in liquidations, NO ONE is gonna buy new meme coin launches. We are stuck with existing coins and those existing coins are down 90%,” Abe posted on X.
Nonetheless, the pessimism was not shared by all. Meme coin investor and analyst Murad remained optimistic.
“Buckle up, the best year of your life is coming,” Murad stated.
This followed the Monday wipeout, when his portfolio dropped by 26%, according to Arkham Intelligence.
Just as the market seemed to be in free fall, a diplomatic breakthrough provided much-needed relief. The Mexican President and the Canadian Prime Minister reached an agreement with President Trump to postpone a potential trade war.
The news triggered a sharp market-wide recovery. Bitcoin (BTC) surged back above $100,000. Furthermore, meme coins saw a resurgence.
According to CoinGecko, their total market cap appreciated by just over 4%. The top 10 meme coins rallied by double digits, except TRUMP. Floki (FLOKI), Pengu, and Dogecoin (DOGE) emerged as the biggest gainers in the past 24 hours.
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