Memecoins Lose $47 Billion in Market Capitalization Since TRUMP Launch

Has the memecoin supercycle finally ended? The memecoin market has shed nearly $50 billion in valuation since the launch of TRUMP.

The total memecoin market capitalization jumped to $117 billion on the back of President Donald Trump’s official memecoin, TRUMP, but is down over 40% since its launch on Jan. 17. The total memecoin market capitalization is now $70 billion, shedding $47 billion in three weeks, and $56 billion from its all-time high in December.

Top memecoin DOGE is down 25% in the last week. PEPE is down 35%, WIF is down 42%, and FARTCOIN is down 55% in the same period.

Insult was added to injury following a controversy surrounding the WIF token, where the memecoin’s official page announced that the DogWifHat would finally be featured on the Las Vegas sphere, after raising nearly $700,000 from the community in March 2024.

Less than a week after the announcement, it was reported that Vegas Sphere officials denied any such agreement, alleging that the WIF team was lying about the collaboration. Despite the allegations, the memecoin’s announcement is still up and reads “dates as soon as we are allowed to share.”

While many market participants are calling memecoins dead, some thought leaders such as Murad Mahmudov are still as bullish as ever. Murad is still forecasting astronomical price targets on the memecoins he supports, and he recently said, “Pay Attention to Coins that are Hustling, Vibing, Bullposting, Showing up and Diamondhanding *regardless of Price*. Those are the ones that will go to Tens of Billions in a few months.”

There is no clear catalyst for the total collapse in prices, but it could be attributed to a massive liquidity rotation as traders dumped their holdings to pile into the TRUMP memecoin launch, only to sustain heavy losses as the token cratered over the following weeks.

More liquidity left the market after Melania Trump, Donald Trump’s wife, launched her own official memecoin less than 48 hours after the TRUMP launch.

The MELANIA token skyrocketed on opening day to a $13 billion valuation, but in its wake, the TRUMP memecoin dropped by 50%, and both have been downtrending ever since. TRUMP currently trades at a $17 billion valuation, and MELANIA at $1.3 billion.