The memecoin market witnessed explosive growth in 2024, but its biggest players — including Dogecoin, Shiba Inu, Pepe, and Dogwifhat — are struggling to hold their positions.
State of the Memecoin Market
Data released by Lookonchain on Sept. 2 revealed just how tough the market is for the incumbent pack of memecoins, which are down an average of 63%. This comes amidst a plethora of new tokens that have been launched since March, significantly increasing competition for established memecoins.
Growth of Memecoin Numbers
Safe-launch services such as Pump.fun and BaseJump have made it easier than ever to launch new tokens, leading to a dramatic increase in their numbers. Since March, over 1.98 million tokens have been launched on Pump.fun alone. However, only 1.3% of these tokens reached a market cap of $69,000, making them eligible for trading on decentralized exchanges.
Impact of Memecoins on Liquidity
The rising popularity of memecoins is causing concern among industry figures. It is believed that memecoins are diverting attention and capital from more long-term projects. Slava Demchuk, CEO of AMLBot, stated that memecoins might be depleting liquidity in the altcoin market.
In a rapidly evolving market, memecoins face significant challenges. However, some experts believe that the memecoin market will never completely fade away, and this category of crypto assets will continue to attract investors.
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