The significant decline in memecoins' value over the past few months has become a noticeable event in the crypto world. According to CoinMarketCap, the memecoin market cap has dropped by 28% over the last 30 days. Experts have different views on the causes and implications of this decline.
Reasons for Memecoins' Decline
Nate Geraci, the founder of the ETF Institute, attributed the current decline in memecoins to smart money moving into crypto. In a post on X (formerly Twitter), he said that Wall Street money has made it difficult for scams and celebrity coins to thrive like before.
Impact on the Crypto Industry
Geraci believes that the memecoin crash is good for long-term crypto adoption, as Wall Street funds are directed towards tangible assets rather than 'garbage' memecoins. However, some users do not link the decline in memecoins to the arrival of traditional investment money in crypto ETFs. One user noted that the cycles of rise and fall of memecoins do not coincide with the start of ETF trading.
Future of Memecoins
Some analysts disagree that memecoins are a thing of the past. Crypto analyst Newsy Johnson stated that new negative assessments of memecoins are aimed at promoting investments in altcoins. According to recent research, a significant portion of memecoins has indeed lost value. The Chainplay report noted that around 97% of memecoins disappeared in 2024, with approximately 2000 coins dying monthly.
The decline in memecoins is associated with the influx of traditional money into cryptocurrency markets, contributing to the stabilization and growth of serious digital assets. Although some claim that the life cycle of memecoins is not over, data shows a significant decline in their popularity.
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