Memecoin dominance falls to lowest level in over two years

Those still holding memecoins belong to an ever-shrinking group. The dominance of the memecoin market relative to the broader altcoin market has fallen to its lowest point since February 2024, a clear sign that enthusiasm for this segment has cooled significantly.

From 10% to 3.7% in less than a year

Analyst Darkfost shares a CryptoQuant chart showing the ratio between the market capitalisation of memecoins and that of altcoins over the past few years. This ratio serves as a gauge for the popularity of the memecoin segment. A high value means memecoins are in fashion, while a low value indicates a largely abandoned market.

In November 2024, the memecoin market reached an absolute peak. Its share of total altcoin market capitalisation rose to over 10%. That was the moment when memecoins were firmly in the spotlight and speculators piled in en masse. Now the figure stands at just 3.7%, meaning the sector has lost more than two-thirds of its relative weight in less than a year.

Memecoin holders are becoming increasingly scarce

Darkfost states that anyone still holding memecoins today is part of the smallest group in the past three years. The growing loss of interest is also visible elsewhere. Earlier it emerged that nearly a million investors collectively lost $3.81 billion on the TRUMP memecoin, further eroding confidence in the segment.

The chart shows that the ratio is currently at the same level as early 2024, just before the memecoin craze truly took off. Whether this forms a bottom and a new season for memecoins is on the horizon, or whether the sector will sink further, remains unclear for now. At the same time, selling pressure on altcoins is falling to its lowest level in five years, which may indicate that the broader market is stabilising while memecoins lag behind.

The figures paint a clear picture: the memecoin hype of 2024 is largely over, and the segment is currently in a deep slump.