 ▲ Meme Coin |
As irrational overheating in the meme coin market reaches a critical point, declarations of capitulation are spreading among investors that the era of meme coins has come to an end.
According to cryptocurrency media outlet NewsBTC on February 16 (local time), on-chain data analytics firm Santiment described the current surge in social media claims that meme coins are “dead” as a classic signal of market capitulation. Santiment analyzed that the moment when the public deems a particular sector worthless and gives up on it can instead present contrarian investors with an opportunity to identify a market bottom. When sentiment across social channels rapidly tilts toward fear and public interest fades, prices may move in the opposite direction.
The recent downturn in the meme coin market is clearly reflected in the numbers. According to CoinMarketCap data, the total market capitalization of meme coins has plunged about 34% over the past 30 days, falling to around $31 billion. As Bitcoin (BTC) dropped to the $60,000 level in early February, marking its lowest point since last October, highly volatile speculative assets such as meme coins suffered even greater losses. The decline accelerated as large holders moved to take profits, and not only small projects but also well-known assets have been unable to escape the broader weakness.
Key support levels for major meme coins are also breaking down. Dogecoin (DOGE) has surrendered the support line it had firmly defended, while Pepe (PEPE) has experienced extreme volatility as large holders reduced their positions. TRUMP coin, a political meme coin associated with U.S. President Donald Trump, has also undergone a sharp correction from its peak as the initial listing frenzy subsided. Structural limitations, including a high concentration of supply in a small number of wallets, have heightened market instability and rapidly erased last year’s gains.
Market experts are questioning whether the traditional capital rotation pattern will apply this time. In the past, funds typically flowed from Bitcoin to Ethereum and then to altcoins and meme coins. However, with institutional investors now accounting for a larger share of the market, capital is likely to move far more selectively. Rather than all meme coins rising together, a differentiated market is expected in which only a handful of assets with compelling narratives and strong community dominance are chosen.
The meme coin market now stands at a turning point, seeking a true bottom amid extreme pessimism. While Santiment noted that the wave of defeatist declarations filling social feeds could signal a rebound, it also emphasized that downside risks remain until liquidity recovers. Meaningful price recovery, along with a restructuring of the meme coin ecosystem, is expected to begin only when market pressure eases and buying interest returns.
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