Data shows that token creation and trading activity on launchpad Pump.fun has fallen by more than 90% since February. This dramatic decline comes in the wake of the Libra (LIBRA) cryptocurrency launch fiasco.
The Libra token, which was supposedly “shared” by Argentine President Javier Milei, saw insiders cash out over $107 million. This wiped out nearly 94% of the token’s value within hours of launch.
“If the launch of both these coins wasn’t enough to end the memecoin mania, LIBRA was the final nail in the coffin,” Ong wrote in his March 6 report. He added that the incident shattered “the illusion that memecoins were fair launches to reveal cabals and insiders profiting off almost everyone else.”
The current slump marks a stark contrast to the memecoin boom that followed US President Donald Trump’s entry into the space. The January 18 launch of the TRUMP memecoin helped Pump.fun reach an all-time high of $3.3 billion in weekly trading volume.
However, the platform’s trading volumes have since crashed 63% from January to February. The broader memecoin market has also suffered, with total market capitalization dropping from an all-time high of $124 billion in December to just $54 billion today.
According to Ong, memecoins were “always going to be seasonal” but some will continue to survive through market cycles. He points to DOGE, SHIB, and BONK as examples of tokens that have weathered previous downturns.
Why Some Memecoins Survive
“The most successful memes are those that have managed to build cult-like communities who are extremely passionate about a cause, who won’t sell and can create content or stories organically,” Ong explained in his report.
The CoinGecko founder believes the market might evolve toward what he calls an “extreme case of power law.” In this scenario, 99.99% of memecoins would fail while a tiny fraction rise to the top and endure.
Ong also points to regulatory factors that may have contributed to the memecoin boom. Without clear frameworks for launching tokens with utility, many projects turned to memecoins that “promise holders nothing” to avoid securities law issues.
“Part of the blame of the proliferation of memecoins should also go to regulators, particularly in the US, for failing to facilitate an orderly fundraising for tokens with any sort of utility at all,” Ong stated.
The rise and fall of memecoins has occurred against a backdrop of general market volatility. Bitcoin dropped more than 20% from over $100,000 to around $87,000 in recent weeks, while the S&P 500 fell approximately 5%.
Despite the short-term pain, Ong remains optimistic about the broader crypto market. “I do believe we are still in the midst of a bull cycle, and we are just experiencing a short-term shake-out,” he wrote.
The explosive growth in token creation continues unabated. GeckoTerminal now tracks more than 5.5 million tokens, with over 600,000 new tokens created in January alone. At this rate, Ong predicts the market will surpass one billion tokens within five years.
For investors looking at the memecoin space, the lessons from survivors like DOGE and SHIB may prove valuable. Creating enduring value in this sector appears to require building strong communities rather than chasing short-term gains.
Some market analysts, including Arthur Hayes, suggest Bitcoin could dip as low as $70,000 in the current correction. However, institutional interest remains strong, with firms like Standard Chartered and Bitwise previously forecasting prices as high as $200,000.
The tokenization trend extends beyond memecoins to include AI agent launchpads, DAOs, and various real-world assets (RWA). Major traditional finance firms are increasingly participating in the RWA sector, which has primarily focused on US treasuries but is expected to expand to higher-risk products.
As the market evolves, attention will be the most precious resource. “There’s going to be a whole lot of tokens and projects vying for our attention (and money),” Ong concluded. “Only the most high quality projects or tokens are going to stand out.”
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear