Data across the industry shows new market trends - the meme coin frenzy is declining. Major meme coins are maintaining consistent performance levels, but a few declines have emerged in the past month.
Some assets are still performing well, but the meme coin market is generally quieting down.
Is a 'Meme Coin Winter' Approaching?
About a month ago, the meme coin market looked quite different: these assets were in a powerful bull run, outperforming major altcoins. DWF Labs even launched a $20 million fund to support meme coin creators.
However, new data shows cracks are widening as trading volume has declined from around $30 billion to under $14 billion.
According to CoinMarketCap data, major meme coins have mostly maintained flat performance this month. But meme coins are known for their dramatic rises and falls, and tend to steal attention from one another.
For example, early this month FARTCOIN achieved a 200% price surge, while older assets like DOGE crashed during that period. Similarly, POPCAT saw its peak performance in November, but quickly started falling behind in the market. So these big successes can mask other losses. But the overall market is quietly showing poor performance.
It's difficult to craft a comprehensive narrative that precisely explains these trends. Perhaps high-risk scam events like Hawk Tuah have contributed to dampening market interest.
More data clearly shows most meme coin traders lose money, at least on certain platforms. For whatever reason, the market dominance of altcoins is rapidly declining.
These trends are certainly concerning, but it's premature to claim a meme coin bear market is imminent. For example, November trading data suggested an altcoin season was approaching, but the actual rally did not materialize.
Perhaps these trends are just a temporary illusion. But traders should be aware of these declining signals.
