- There’s been a notable drop in the number of meme tokens deployed on Pump.fun.
- While memecoins took a hit, Bitcoin attracted most of the market’s liquidity.
Since reaching its peak in January this year, the cryptocurrency market has declined by approximately 22%.
Source: TradingView
Total market capitalization fell to $2.85 trillion, which is an indication of growing bearish sentiment, as several previously high-performing sectors declined.
Memecoins mirror the broader slowdown
The memecoin market has mirrored this trend, despite being a significant contributor to the overall crypto market capitalization.
One example is the presidential memecoin token Official Trump [TRUMP], which experienced a massive rally crossing $1 billion in market cap in record time, rising from an all-time low of $1.21 to a high of $75.35.
It has since plunged by 83%. Others, like Official Melania Meme [MELANIA], have followed a similar trajectory.
That said, the memecoin sector still holds a market cap of $53.04 billion—up 2.19% over the past 30 days.
However, platforms like Pump.fun, which previously enabled the rapid deployment of memecoins, have seen a significant decline in activity, contributing to the weak performance of the memecoin sector.
Source: CoinGecko
At the time of writing, daily token deployments on Pump.fun dropped by 56.3%, from 72,000 to 31,000.
Graduated tokens—those that make it to broader markets based on factors like liquidity—fell from 1.4% to 0.7% over the past month, confirming that investors aren’t backing these tokens.
In a twist, the decline in both token deployment and graduation on Pump.fun escalated following the launch of LIBRA, promoted by the Argentine president, Javier Milei.
Within hours of its launch, its market capitalization fell from $4.6 billion to $220 million, in what is known as a rug pull.
AMBCrypto found that investor focus has shifted toward Bitcoin as the broader market struggles and the memecoin sector attracts less liquidity.
Bitcoin attracts market liquidity, even from memes
In fact, Bitcoin has become the primary magnet for liquidity as the broader market weakens. This is evident in its growing dominance within the crypto market.
At press time, Bitcoin’s market dominance stood at 59.1%—a 4.6% climb since the start of the year. The metric captures Bitcoin’s share of total crypto market value relative to altcoins.
As Bitcoin’s dominance has risen, memecoin dominance has declined to 1.83%, confirming the ongoing shift in market preference.
Source: CoinGecko
With less liquidity flowing into the memecoin sector, most tokens in this category are likely to remain underperforming, except for a few that react to specific market events, such as TRUMP, which surged 75% in the past day.
