The Memecoin market cools down: Sharp decline and comprehensive impact on cryptocurrencies

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The meme coin fever that once caused a stir in the cryptocurrency market in 2024 has significantly cooled down, with the GMCI index chart recording widespread declines in various areas. Most notably, the GMCI Meme index has undergone a strong reversal, dropping from a peak of around 550% in December 2024 to just 80% in March 2025.

This 90% drop clearly reflects the volatility in the memecoin sector, which often lacks core value factors and mainly relies on motivation from social networks as well as the enthusiasm of the community. The assets with the largest proportion in this index -- including Shiba Inu, Dogecoin, Pepe, and Trump tokens -- all face significant selling pressure as speculative traders exit the market.

However, the decline is not only limited to memecoins. Data from the chart shows that all GMCI indicators have been trending downward since the beginning of 2025, albeit to varying degrees. While the AI and GMCI30 indicators demonstrate better resilience with moderate declines, the GMCI12 and DeFi indicators are plummeting more steeply, following concerning trajectories.

Memecoin index drops 90% as the cryptocurrency market declinesSource: The Block DataThe overall market retreat occurs amid increasing macroeconomic instability and escalating trade tensions between the US and its counterparts, factors that have significantly reduced risk appetite in financial markets. In this environment, speculative cryptocurrency assets often experience the deepest corrections as investors shift to safer havens.

The changes in the market landscape are also reflected in the activity indicators on meme coin launching platforms. Pump.fun, once considered the focal point of speculative trading, has now witnessed daily revenue drop below 1 million USD, indicating waning interest in new token issuances. This marks a significant shift from the platform's peak period, when it consistently generated daily revenues in the millions of USD.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment decisions

  • The prices of BNB and CAKE skyrocket as memecoin activity shifts to BNB Chain and PancakeSwap
  • PEPE price outlook: Can it overcome the memecoin crisis?

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