Memecoin Market Decline, Chaotic Competition Among New Coins

- Average Decline of Over 63% in Major Memecoin Markets - Pump.fun's Revenue Volatility Rises, Hits Lowest of $262,000 Since May and Recovers to $400,000 [Unblock Media] The memecoin market has entered a general correction phase. Major memecoins like Dogecoin, Shiba Inu, and Pepe are struggling to maintain their yearly highs, with data showing an average decline of 63%. The primary reasons for this decline include decreased investor interest, the indiscriminate release of new coins, and lowered investment confidence due to the overall market adjustment. According to data released by Lookonchain, the introduction of safe launch tokens has intensified competition in the memecoin market. Platforms like Pump.fun and BaseJump have made it easier to issue new coins, lowering technical and financial barriers to the market. Consequently, a greater number of new coins have been issued, accelerating competition within the memecoin sector. Since March, more than 1.98 million tokens have been issued on Pump.fun. Additionally, many memecoins have experienced sharp declines in liquidity on certain exchanges and altcoin markets due to large-scale sell-offs by traders aiming for short-term profits. Industry experts such as Evan Luthra and Slava Demchuk have indicated that these circumstances have drained the former bullish energy from memecoins. Demchuk stated on Cointelegraph, "Memecoin may have already sucked the life out of this bull market, and now money is being redirected to rug pulls and pump-and-dump schemes. As a result, liquidity is lacking in the altcoin market." This reduction in altcoin market liquidity is negatively impacting the entire cryptocurrency market. Evan Luthra added, "Memecoin is definitely mostly pump-and-dump and does not create intrinsic value." Combining the views of Evan Luthra and Slava Demchuk, it appears that memecoins resemble pump-and-dump schemes more than genuine value creation ventures. As the number of memecoins increases, so do the associated costs. Of the 1.98 million tokens issued on Pump.fun since March, only the top 1.3% have received positive assessments. Consequently, even experienced traders are likening the current memecoin market to a "slaughterhouse." According to Josh Benaron, the current memecoin market is expanding too quickly and too vastly, ultimately leading to self-destruction. Supporting evidence of this self-destructive trend includes the daily revenue of Pump.fun dropping to a low of $262,000 since May before recovering to over $400,000. This reflects recurring volatility and short-term popularity. In conclusion, memecoins are structurally characterized by high risk and short-term phenomena, tending to attract temporary capital inflows rather than fostering sustainable long-term value creation. This may cause severe liquidity issues and changes in investment patterns across the entire cryptocurrency market.