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02/07 13:21

Is Meme Coin Fever Over? Not Quite, Says Kaiko Res

Is Meme Coin Fever Over? Not Quite, Says Kaiko Research

Meme coins, the fun and often humorous cryptocurrencies that have taken the internet by storm, have had a rough start this year. According to a recent report from Kaiko, most meme tokens are struggling, with year-to-date losses ranging from 10% to 70%. But does that mean meme coin fever is over? Not quite.

Meme Coins: The Highs and Lows

A Kaiko report shows that while meme tokens like Dogecoin, Shiba Inu, and newer coins have seen significant price drops this year, their popularity hasn’t completely died down.

While these tokens haven’t performed well recently, their communities remain strong and traders are still active, suggesting that the hype hasn’t died down.

  The Rise and Fall of Meme Coins: A Brief Overview

Meme coins have gained a lot of attention in the past year due to their viral trends and the potential for quick profits. Traders rushed to buy these tokens, hoping for big profits. But in 2025, despite the volatility, the continued launch of new meme coins, especially on the Solana network, proves that traders are still willing to bet on the next big viral success.

Why Do Meme Coins Continue to Rise?

One of the main reasons meme coins continue to thrive is that they are profitable for both exchanges and market makers. The price difference between buying and selling meme coins is much higher than that of larger cryptocurrencies like Solana (SOL) or Ripple (XRP). This allows market makers to make more money trading meme coins.

Exchanges are also looking to make money from trading meme coins, which generate millions in fees.  Centralized exchanges (CEXs) have been rapidly adding meme coins since 2020. While US exchanges like Coinbase were initially slower to add meme tokens, they are now catching up.

Coins like PNUT, TRUMP, and MELANIA have appeared on major exchanges within days thanks to their viral appeal and connections to popular personalities.

Risks of Rapid Listing of Meme Coins

However, Kaiko’s analysis points out the risks associated with the rapid listing of meme coins. These tokens often see huge trading volumes that far exceed their liquidity, especially when they first launch. For example, the TRUMP token saw $16 billion in trading volume on January 20 — about 30% of Bitcoin’s daily volume — despite limited liquidity.

This imbalance can lead to wild price swings, forcing market makers to widen bid-ask spreads to manage risk.  As a result, trading costs are rising, making meme coins a high-risk, high-reward investment.

Still Going Strong!

While the meme coin hype has slowed this year, it’s far from over. The combination of humor, community support, and speculative potential continues to attract investors. As exchanges adjust their listing strategies — from “permissioned lists” to “blocklists” — to better manage new tokens, meme coins are likely to remain a significant part of the crypto world.

In short, while 2025 is a bumpy year for meme coins, their ability to attract the attention of traders and investors ensures that they will continue to play a major role in the crypto market.

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