From $150B To $31B: The Brutal Deleveraging Of The Memecoin Attention Economy
The memecoin sector has experienced a sharp contraction since the speculative peak reached in late 2024, reflecting the cyclical nature of sentiment-driven assets in the cryptocurrency market. After attracting massive attention during the previous bull phase, many meme-based tokens have since lost momentum as liquidity tightened and investor risk appetite declined across digital assets. At its peak, the memecoin sector briefly approached the $90–$100 billion range before momentum began to fade. Since then, market capitalization has steadily declined, reflecting the broader cooling of speculative activity across crypto markets. As of the latest reading, the sector’s total value sits near $27–$28 billion, marking one of the lowest levels recorded in the past year.Related Reading
Technically, the structure remains weak. The market cap continues to trade below its major moving averages, which are all sloping downward and acting as dynamic resistance. This alignment suggests that momentum still favors sellers despite occasional short-term rebounds.
The sharp spike in trading volume during the February decline indicates a capitulation event, when many speculative positions likely unwound rapidly. Following that move, market capitalization has stabilized in a narrow range, suggesting the sector is attempting to find a temporary equilibrium after months of contraction.
Until the market cap reclaims higher resistance levels near $35–$40 billion, the chart suggests the memecoin sector remains in a broader corrective phase.
Featured image from ChatGPT, chart from TradingView.com
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