Meme coins have been one of the most popular narratives in the first two quarters of 2024. However, there has been a significant cooling off in their market after the intense activity of the “spring.”
In fact, recent findings suggest that only a handful of meme coins have recorded gains over the past 30 days, and these are relatively lesser-known. While the popular ones are struggling to gain strength.
Meme Coin Frenzy Fizzles
According to the latest observation shared by IntoTheBlock, the frenzy around meme coins has notably diminished, with only a few showing positive price action.
Values of lesser-known tokens such as doginme, Kimbo, Turbo, Dogelon Mars, and Coq Inu have surged by 18%,16.97%, 15.70%, 11.57%, and 10.1%, respectively, during this period.
Meanwhile, the OG meme coin – Dogecoin (DOGE) – settled with a modest 2.6% decline over the past month. Shiba Inu (SHIB), on the other hand, is down by almost 8%. PEPE, too, is in the red within the same timeframe.
This shift indicates a period of consolidation or decreased interest in speculative meme coin investments, as per IntoTheBlock. The crypto analytic platform also speculated whether the market would witness another wave of explosive price movements in the meme coin sector.
“Following the peak of meme coin-spring, the meme coin frenzy has significantly diminished. Over the past 30 days, only a handful of meme coins have shown positive price action. Do you think we’ll see another wave of explosive price moves?”
Scams in the Meme Coin Sector
Since the beginning of this year, the Solana blockchain has experienced a surge in meme coin creations, particularly tokens themed around celebrities. Crypto investors have observed a flurry of launches as the market recovered, but recent statistics paint a bleak picture.
In fact, celebrity-backed meme coins on the Layer 1 blockchain have plummeted by 94% within the first month after their launch. Approximately 50% of these tokens have lost 99% of their value from their peak prices. This essentially highlighted the speculative nature of this asset class, especially those that depend on celebrity endorsements for investment.
For instance, prominent on-chain sleuth ZachXBT recently linked the convicted UK hacker Gurvinder Bhangu to the hacks of the X accounts of Sydney Sweeney and Bob Odenkirk. These accounts were then used to promote Solana-based tokens, SWEENEY and SAUL, in pump-and-dump schemes.