In 2024, the memecoin market faced a surge in popularity followed by a sharp decline in value. Well-known tokens like Dogecoin and Shiba Inu saw significant drops, with an overall decline of around 63%.
Decline in Value of Known Memecoins
In 2024, the value of memecoins such as Dogecoin, Shiba Inu, Pepe, and Dogwifhat significantly dropped. According to Lookonchain data released on September 2, the average value decline was around 63%.
Simplification of New Token Launches
The emergence of new platforms like Pump.fun and BaseJump radically changed the memecoin market landscape. These platforms simplified the new token launch process by removing many of the technical and financial barriers, leading to a significant increase in the number of new memecoins.
Shift in Trader Behavior
Ilias Salvatore of the token analytics tool Flooz noted changes in market dynamics due to new platforms. He highlighted the influence of platforms like Pump.fun and Solana on trader attention. Carlos Mercado, a data scientist at Flipside Crypto, also noted the rapid turnover of tokens and short-term trading behaviors, which differ from traditional investment strategies.
Despite the large number of new memecoins, most investors face high risks. Data shows that only a small fraction of new tokens achieve significant market results.
Comments