Meme coin market sheds 56% since December, faces consolidation around top tokens

The meme coin market has lost 56% of its value since December, wiping out gains that followed Donald Trump’s 2024 presidential victory, Cointelegraph reported. According to CoinMarketCap, meme coin market capitalization stood at $54 billion on March 5, down from $124 billion in early December. The sector peaked at $137 billion on Dec. 8 but gradually declined, with brief surges tied to meme coin launches by Trump and Melania in January. Analysts blame the slump on global economic uncertainty, lack of regulation, insider trading and celebrity-driven pump-and-dump schemes. Zeta Markets co-founder Anmol Singh said the market is likely to consolidate around leading coins like Dogecoin, Pepe, Bonk, Dogwifhat and the Official Trump token, while smaller projects fade. Dogecoin remains the dominant player with 53% market share, followed by SHIB, PEPE and the Official Trump token. Some, including Tron founder Justin Sun, still see potential in meme coins but advise focusing on established names like DOGE.