Memecoins Lose Steam as Share of Altcoin Market Hits Three-Year Low

Memecoins are rapidly losing their market presence, with their share of the broader altcoin market's total capitalization falling sharply.

Darkfost, a CryptoQuant contributor, wrote on X on July 5 that the number of investors holding memecoins has dropped to its lowest level yet. Memecoins' share of total altcoin market capitalization has also fallen to its lowest since February 2024, he said.

The metric published by Darkfost measures memecoin market capitalization as a ratio of total altcoin market capitalization. A higher ratio points to stronger appetite for memecoin investing, while a lower reading suggests investor attention has shifted elsewhere.

The ratio rose above 10% in November last year, when the memecoin rally was still underway, reaching its highest point in the past three years. It has since fallen steadily to about 3.7%, the lowest level since February 2024.

Darkfost said the memecoin market is effectively in a phase where investors are turning away from it.