Memecoin Market Plummets 94% as Libra Launch Fails, DOGE and SHIB Survive
1min read Memecoin market activity has experienced a significant decline, with metrics dropping over 90% following controversial launches and apparent rug pulls. The Libra cryptocurrency launch, which saw insiders cash out over $107 million, wiped out nearly 94% of the token’s value within hours, shattering investor confidence and marking a stark contrast to the previous memecoin boom.
The memecoin market cap has plummeted from $124 billion to $54 billion, with trading volumes plunging 63%. This dramatic decline comes after the Libra token launch fiasco, which was supposedly “shared” by Argentine President Javier Milei. The incident highlighted the lack of fairness in memecoin launches, where insiders often profit at the expense of other investors.
Despite the current slump, some memecoins like DOGE, SHIB, and BONK have demonstrated resilience by building passionate communities. These tokens have weathered previous downturns and continue to survive through market cycles. The success of these memecoins can be attributed to their ability to create content or stories organically, fostering a cult-like community that is extremely passionate about the cause.
Regulatory uncertainty in the US has also played a role in 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. This regulatory environment has contributed to the proliferation of memecoins, but it may change under the new administration.
The memecoin market is expected to evolve toward an “extreme case of power law,” where 99.99% of memecoins will fail while a tiny fraction rise to the top and endure. This scenario highlights the need for memecoins to build strong communities and create enduring value rather than chasing short-term gains.
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. The explosive growth in token creation continues unabated, with over 600,000 new tokens created in January alone. At this rate, the market is predicted to surpass one billion tokens within five years.
Despite the short-term pain, the broader crypto market remains optimistic. The tokenization trend extends beyond 