Memecoin Market Decline, Chaotic Competition Among New Coins

Working Title: "Top Meme Coins Face Challenges Amid the Rise of Stable Release Tokens"

@Mark, you have extensive knowledge of the cryptocurrency and stock markets. This topic concerns the difficulties the top meme coins are facing in the market and how new stable release tokens are encroaching on their market share. I believe your overall insights into the cryptocurrency market will be helpful, so I'm assigning this task to you. Please take care of it.

Let's start the analysis.

We can observe that the current meme coin market is highly unstable. The major players in this market, such as Dogecoin, Shiba Inu, Pepe, and Dogwifhat (WIF), which saw explosive growth throughout 2024, are struggling to maintain their annual highs. According to data from Lookonchain, the average decline rate for major meme coins is around 63%. This downward trend is accelerating as the rules of the game in the meme coin market are changing.

The primary reason for this change is the emergence of new 'safe-launch' services. Platforms like Pump.fun and BaseJump have made the issuance of new coins much more accessible than before, lowering technical and financial barriers to entry in the market. This has, in turn, intensified competition within the meme coin sector.

According to Ilias Salvatore, the current market operates on the principle that "money flows where interest lies." Pump.fun and Solana are trending, attracting traders looking for new potential, and targeting a different type of trader than leverage trading. Thus, traders are moving more quickly to newly issued coins, with most safe launch tokens having a short life cycle of a few hours to days.

However, the number of meme coins has surged, increasing the associated costs. On Pump.fun alone, over 1.98 million tokens have been issued since March. Yet, only the top 1.3% have been evaluated as successful in the market. This environment makes it difficult for users to find winning tokens, leading even experienced traders to liken the current meme coin market to a "slaughterhouse."

Additionally, meme coins are causing liquidity issues. Some experts warn that meme coins are siphoning vitality from the current bull run. This trend is reducing liquidity in the altcoin market, negatively impacting the entire cryptocurrency market.

Compiling the views of Evan Luthra and Slava Demchuk, meme coins exhibit characteristics closer to a 'pump and dump' scheme rather than true value creation. Furthermore, according to Carlos Mercado's analysis, meme coins drive traders to seek short-term profits, making long-term investment challenging.

According to Josh Benaron, the current meme coin market is growing too fast and too large, ultimately leading to its self-destruction. There is insufficient demand to sustain the continual generation of new coins. Supporting data includes the daily revenue of Pump.fun, which dropped to its lowest since May at $262,000 before rebounding above $400,000.

Meme coins thus accentuate the structural problems of the existing cryptocurrency market, diverting capital from useful technological projects. However, as new safe launch platforms like Pump.fun, BaseJump, and Ethervista continue to emerge across various chains, the popularity of meme coins is not expected to completely vanish.

In conclusion, due to their structural characteristics, meme coins are evaluated as high-risk and short-term phenomena. They tend to induce temporary capital inflow rather than sustainable long-term value creation. This can lead to significant liquidity issues and changes in investment patterns across the entire cryptocurrency market.

[Victoria]:

Alright, Mark. I'll give you feedback on the market analysis. It was a good attempt, but it still needs some additional improvements. You only need to correct about three things.

Well-done parts:

1. The strong point is that you clearly presented the instability of the meme coin market and the decline rates of major coins. Information backed by data can always build credibility with the readers.
2. The part where you explained how 'safe launch' services have intensified competition in the meme coin market was also very helpful. You analyzed the causes of market changes well.

Parts that need improvement:

1. After the part where you state, "The average decline rate is around 63%," you need to clearly describe the specific reasons why the decline rate is as high as 63%. Explain in more detail what factors played a role in the market so that readers can understand better.

2. In the part where you mention, "Meme coins are causing liquidity issues," it would be better to describe more specifically which areas are experiencing liquidity problems. For instance, including examples of particular altcoin markets or specific exchanges would be helpful.

3. In the sections where you quote experts' opinions, it would be good to add something like, "including the opinion of Slava Demchuk,". Highlighting that various expert opinions have been reflected can make it more persuasive to the readers.

In summary, you should strengthen the logical flow leading to the conclusion by better utilizing footnotes and citations. Reflect the feedback thoroughly to make the article more robust. Got it?

Mark, start writing the article!

Alright, let's take a detailed look at the article you submitted.

First, I'll give feedback on the summary sentence. The summary is generally appropriate. You've encapsulated the key points of the decline rates in the major memecoin market and the revenue volatility of a particular platform, which captures the essence of the article well. However, the expression "average decline rate of the memecoin market of more than 63%" could be made more concise. For example, "memecoin market average down 63%" would make it easier to grasp the main points.

Now, let's look at the article title. "Overall Adjustment in Memecoin Market... Decline in Investor Interest and Proliferation of New Coins" is relatively good. It includes elements that can attract interest. However, it could be made a little more concise. For example, "Memecoin Market Adjustment... Decline in Investor Interest and Proliferation of New Coins" could be cleaner and more attention-grabbing.

Let's examine the article as a whole. The content is factual and detailed, which is good. You've covered the decline of major memecoins, the impact of platforms like Pump.fun, and included opinions from industry experts, which is very good. However, some sentences are too long, which might make it challenging to keep the reader's attention. For instance, "The main reasons for this decline rate are the decline in investor interest, reckless launch of new coins, and decreased investment confidence due to the overall adjustment of the market." This sentence covers three important points, so it would be better to split it into three sentences. Additionally, it would be beneficial to make the conclusion a bit more concise as well.

Overall, the structure and content of the article are very satisfactory and seem ready for publication. Now, you should request @olive to work on the representative image for the article. Most importantly, always remember to ensure that all information is appropriate and trustworthy.