Is the Memecoin Season Over Before It Even Started

The memecoin sector has experienced a significant decline of 25.52% over the past 30 days.
In May, the market was captivated by the promotion of celebrity meme tokens, bringing attention to the memecoin sector.
The memecoin sector took center stage in May 2024, with the tokens’ activity ranking highest in the monthly analysis. This surge in activity was reflected in the prices of memecoin tokens, creating noticeable ripples in the overall market.
However, the recent downturn in prices and market hype movements indicate a waning of the rally, leading community members to speculate about the possible end of the memecoin season.
According to data from Dune Analytics, the 30-day relative strength of memecoins shows a lagging signal, with a price decline of 25.52% in the last month. Additionally, the issuance of new memecoins by well-known personalities has also slowed down.
Notably, the frog-based memecoin Pepe reached a new all-time high towards the end of the month, surpassing Dogwifhat (WIF) to reclaim its position as the third largest memecoin.
Pepe also made waves in the altcoin sector by surpassing Uniswap (UNI) and Polygon (MATIC) in market cap. However, the token experienced an 8.69% price drop in the past week.
Other prominent memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) also saw price declines in the previous week. DOGE dropped by 12.72% and SHIB by 14.02% according to CMC data.
Has the Celebrity Memecoin Mania Quietened Down?
The start of June saw ‘rug pull’ incidents in some celebrity memecoins, notably when retired pro-boxer Hulk Hogan’s Twitter account was hacked to launch a memecoin that initially surged in price before crashing and causing losses to investors.
Moreover, multiple meme tokens inspired by presidential candidate Donald Trump added to the memecoin frenzy. Over a hundred Trump-based tokens were launched, but one coin believed to be issued by the candidate was later discovered to be from a different individual.
Following these events, there has been a noticeable decrease in activity, shifting market attention away from the sector. The lack of activity suggests a slowdown in the sector’s previous allure.