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The memecoin economy is under significant pressure amid a major decline in the larger cryptocurrency sector. Cryptocurrency analyst Darkvost recently reported that users holding memecoins are becoming increasingly rare, falling to their lowest levels in several years. While the larger cryptocurrency market is still suffering from a long-term bear market, these online prank-based cryptocurrencies appear to be the hardest hit.
Darkfeast chirp:
The influencer also attached the following chart to the tweet:
Based on the chart, the total share of memecoins is close to 3.7% of the entire cryptocurrency market. This is the lowest level recorded since February 2024, and the share could decline further in the near future as there is currently no end in sight to the ongoing market pressure.
Back in November 2024, the memecoin sector held up to 10% (or even 11% in some reports) of the market at the height of memecoin mania. However, the market share peaked around that time and has been trending downward ever since. It has eroded steadily through 2025 and into mid-2026, and is now trading at less than 4%.
Why are Memecoins so volatile?
Memcoins have always been a niche online phenomenon that has captured the attention of users, especially among the younger demographic. It all started with more mainstream coins like Dogecoin and Shiba Inu that showed the world that there was potential for social media to become digital currencies.
The sector exploded in 2024, led by platforms like Pump.fun that enabled rapid launch of tokens on Solana and other chains. Viral memes and characters were encoded and distributed to millions of investors through the platform. Most of these launches failed, but some succeeded, which kept the economy relevant for about a year and a half.
At one point, the total market cap of memecoins reached $150 billion. However, the bubble burst, and the sector collapsed, now worth around $27-35 billion in mid-2026.
the future
The sudden collapse in the value of the memecoin sector shows that this fad is over for now, after the great capitulation. Every cryptocurrency bull market has seen the emergence of a major alternative sector that has failed to gain traction in the long term, and there are fears that memcoins could follow the same path.
In 2017, it was the altcoin revolution; And in 2021, the NFT craze; In 2024-2025, the prevailing sentiment is towards meme currencies. The full recovery of the memecoin economy remains uncertain.