Memecoin Mania Crashes: $46B Wiped Out, But Is a Rebound Coming?

The once red-hot memecoin market has taken a nosedive, shedding a staggering $46 billion in value since Donald Trump’s return to the White House. What was expected to be a rally, fueled by the launch of Trump and Melania-branded tokens, has instead turned into a brutal sell-off. But is this just a temporary setback, or could memecoins be gearing up for another explosive run?

The Trump Token Hype and the Sudden Collapse

At the peak of the frenzy, Trump and Melania’s memecoins dominated the market, accounting for nearly 68% of total memecoin trading volume, according to Illia Otychenko, lead analyst at CEX.io. Their rise was fueled by capital rotation from other major players like Dogecoin and Pepe. However, the hype was short-lived. Early investors cashed out millions, leaving later buyers deep in the red.

Trump’s memecoin has plummeted 75% from its peak, wiping out $11 billion, while Melania’s token has fared even worse, crashing 90%. The broader memecoin market has followed suit, with trading volume dropping 20% over the past month.

Oversaturation and Market Recalibration

While part of this decline can be attributed to the broader crypto downturn, analysts argue that memecoins have become oversaturated. “We’re seeing a shift in market sentiment, similar to 2020 and 2021, where projects with actual technical innovation are gaining traction,” said Alvin Kan, COO of Bitget Wallet.

The ease of launching new tokens has also diluted investor interest. Pump.fun, one of the most popular memecoin launchpads, is churning out 50,000 new tokens daily. Yet, recent data reviewed by DL News indicates that only a handful of these reach the $1 million market cap milestone—a stark contrast to just a few weeks ago when dozens achieved that feat.

Will Memecoins Make a Comeback?

Despite the crash, industry experts, including BitGalactic analysts, believe memecoins still have life left in them. “The market moves in cycles, and memecoins thrive in speculative environments. While we may see short-term bounces, a true resurgence is more likely to align with the next crypto bull run,” a BitGalactic strategist noted.

Bitcoin, the market leader, continues to dictate the broader trend. Currently trading at $98,000—down 10% from its all-time high of $108,786 on Trump’s inauguration day—its next move could determine memecoin’s fate. If BTC reclaims new highs, the speculative appetite for memecoins may return in full force.

For now, memecoins remain a high-risk, high-reward game. While the hype may have faded, history suggests that all it takes is one viral moment to send the sector soaring again.