Experts Say Meme Coin Collapse Is Temporary—Here's Why

The excitement of memecoins has considerably cooled in recent weeks, after experiencing a historic peak. According to Bobby Ong, founder of CoinGecko, while these meme-based cryptos may seem temporarily “dead,” their cyclical nature suggests an inevitable return to the market.

The Collapse of the Meme Coin Market After a Promising Start to the Year

CoinGecko has observed a drastic drop in meme coin activity since February 2025. This trend has particularly intensified following the controversial launch of the memecoin Libra (LIBRA), associated with Argentine President Javier Milei. According to the report published on March 6 by Bobby Ong, the indicators from the launch platform Pump.fun have dropped by over 90% since their peak in February.

The contrast is striking with the euphoria that followed the launch of the meme coin TRUMP on January 18, when Pump.fun recorded a record weekly trading volume of $3.3 billion.

Since then, volumes have dropped by 63% between January and February. The total market capitalization of memecoins, which had reached a historic high of $124 billion in December, has now fallen to $54 billion.

The “Libragate” scandal dealt a fatal blow to investor enthusiasm. This launch saw insiders cashing in over $107 million, erasing nearly 94% of the token’s value in a matter of hours. “LIBRA was the final blow, shattering the illusion that memecoins were fair launches […]”, explains Ong.

A Cyclical Future Despite the Current Turmoil

Despite this gloomy period, CoinGecko experts maintain that memecoins will remain “always seasonal,” following cycles of popularity. Bobby Ong predicts that the market may evolve towards “an extreme case of the power law,” where 99.99% of projects will fail while a few rare tokens will manage to endure.

Examples of DOGE, SHIB, and BONK, which have survived several market cycles, offer valuable lessons. According to Ong, “the most successful memes are those that have created passionate communities, which do not sell out and can generate content organically “.

This calm coincides with a potential cleansing of the crypto market. In February, the analysis platform Santiment noted that interest was now shifting to Bitcoin, Ethereum, and other layer 1 altcoins, suggesting a potentially healthier market cycle.

While the sector is going through a tough phase, U.S. authorities are considering regulating this volatile market. The MEME Act, a legislative initiative led by Democrats, could prohibit politicians from issuing or promoting digital assets, directly targeting the TRUMP and MELANIA tokens that have caused an estimated $2 billion loss for nearly 813,000 investors.