The memecoin sector has experienced a significant decline of 25.52% in the last 30 days, catching the attention of the market due to celebrity endorsements in May. In fact, May 2024 was a remarkable month for the memecoin sector, with these tokens dominating the monthly analysis and causing significant market fluctuations.
However, the recent drop in prices and the decrease in market hype indicate that the memecoin rally has lost momentum. This has led community members to speculate that the memecoin season may be coming to an end.
According to data from Dune Analytics, the 30-day relative strength for memecoins is showing a lagging signal. The platform reveals that these tokens have experienced a price decline of 25.52% in the past month. Additionally, the issuance of new memecoins by well-known personalities has slowed down.
Interestingly, the frog-based memecoin Pepe reached its all-time high (ATH) towards the end of the month, surpassing Dogwifhat (WIF) to become the third largest memecoin. Moreover, Pepe made significant waves in the altcoin sector by surpassing Uniswap (UNI) and Polygon (MATIC) in market capitalization. However, the token experienced an 8.69% price dip in the past week.
Other leading memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) have also seen price declines in the past week. DOGE recorded a 12.72% weekly decline, while SHIB dropped 14.02%, according to data from CMC.
The celebrity memecoin mania seems to have quieted down recently, with incidents of “rug pull” scams affecting some tokens at the beginning of June. One notable incident involved the hacking of retired pro-boxer Hulk Hogan’s Twitter account, leading to the launch of a memecoin that initially surged in price but eventually resulted in significant losses for buyers.
Furthermore, the launch of multiple meme tokens inspired by presidential candidate Donald Trump contributed to the memecoin season. Over a hundred Trump-based tokens were introduced to the market. However, it was later discovered that one of the coins believed to be issued by Trump was actually issued by someone else.
As a result, there has been a decline in activity and attention in the memecoin sector. This suggests that the allure that surrounded the sector in the recent past has diminished.
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