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Memecoin mania fading? What’s scaring creators off Pump.fun
The crypto market has witnessed a significant decline in the number of meme tokens deployed on Pump.fun, with daily token deployments plummeting by 56.3%. This sharp decrease indicates that the enthusiasm for memecoins may be waning.
According to recent data, there has been an approximately 22% drop in the cryptocurrency market since reaching its peak in January this year. The total market capitalization has fallen to $2.85 trillion, a sign of growing bearish sentiment in the market as previously high-performing sectors have declined.
The memecoin market has mirrored this trend, despite being a significant contributor to the overall crypto market capitalization. For instance, the presidential memecoin token Official Trump [TRUMP] experienced an enormous rally, crossing $1 billion in market cap in record time. However, it has since plunged by 83%. Other tokens, such as Official Melania Meme [MELANIA], have followed a similar trajectory.
Although the memecoin sector still maintains a substantial market capitalization of $53.04 billion, up 2.19% over the past 30 days, the decline in platforms like Pump.fun is alarming. The platform had enabled rapid deployment of memecoins, contributing to their weak performance.
Following the launch of LIBRA, promoted by Argentine President Javier Milei, token deployments and graduations on Pump.fun escalated, as investors’ focus shifted toward Bitcoin amid market struggles. This event, known as a rug pull, saw LIBRA’s market capitalization drop from $4.6 billion to $220 million within hours.
As the broader crypto market falters, Bitcoin has become the primary magnet for liquidity. Its dominance within the market has risen by 4.6% since the start of the year and currently stands at 59.1%. Simultaneously, memecoin dominance declined to 1.83%, further confirming the shift in investor preference.
It appears that with less liquidity flowing into the memecoin sector, most tokens within this category are expected to remain underperforming, except for a few that may react to specific market events, such as TRUMP, which rose by 75% over the past day.
Source: https://ambcrypto.com/memecoin-mania-fading-whats-scaring-creators-off-pump-fun/
