The rapid surge of memecoins this year has started to show signs of cooling off, with the number of new launches halving in the past two weeks.
Slorg, a Solana-based Jupiter’s Core Working Group member, questioned whether this shift signals the end of the memecoin season or simply a pivot toward more quality projects. Despite their hype, the overall performance of memecoins has been far from impressive in recent months.
Is the Memecoin Craze Slowing Down?
According to a recent Bloomberg report, the cryptocurrency sector is now more focused on memecoins than on DeFi initiatives. Lu, a market expert, claims that this modification is part of why Ether isn’t performing as well as Solana, the blockchain that memecoin developers prefer. Although Solana has drawn memecoin developers, there are issues affecting the meme token industry as a whole.
Bitcoin’s value has dropped significantly over the last week, falling to $56,387.73 after losing more than 4.95%. The meme token market has also been impacted by this market collapse. Alongside Bitcoin’s decline, tokens that gained traction early this year, like Pepe and Brett, have witnessed significant losses.
Investors, ever eager to find the next breakout star in the crypto space, are now looking toward initial coin offerings (ICOs) as potential sources of high returns. However, this shift has not been entirely favourable for memecoins either, as excitement around these tokens appears to be waning.
Memecoins Market Down Since Last
The meme coin market continues to be strong despite these difficulties. In the past day, well-known tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) have somewhat increased in value. SHIB is up 0.03% and DOGE is up 1.78%. Even if these improvements are small, they provide some hope in an otherwise difficult situation for memecoins.
It’s unknown if this cooling trend will last as the market corrects itself or if there will be another boom in the meme token market. For the time being, it appears that the emphasis is moving away from the rush of low-effort token launches that typified the early phases of memecoin fever and towards more quality-driven ventures.
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