The memecoin market, once a hotbed of speculative excitement, appears to be rapidly cooling off as a string of failed launches and rug pulls have left investors disillusioned. According to CoinGecko founder Bobby Ong, enthusiasm for these highly volatile tokens has plummeted, with key trading metrics nosediving in recent weeks. In a March 6 report, Ong highlighted the dramatic decline in activity on Pump.fun, a popular token launchpad, in the wake of the Libra (LIBRA) rug pull. Metrics for newly created and daily graduated tokens on the platform collapsed by over 90% from their February peak, signaling a sharp shift in sentiment. Bad Launches Drain Memecoin Enthusiasm “The launch of TRUMP and MELANIA marked the peak for memecoins as they sucked liquidity and attention from the rest of the market,” Ong explained. Just two months ago, memecoin trading was at an all-time high, fueled by President Donald Trump’s token launch on January 18, which pushed Pump.fun’s weekly trading volume to a staggering $3.3 billion. However, since then, activity on the platform has plunged by 63%, mirroring the broader decline in the memecoin sector. Data from CoinMarketCap further underscores this trend. The total memecoin market cap hit an all-time high of $124 billion on December 5 but has since crashed to just $54 billion—a loss of over 56%. Insider Manipulation While the memecoin hype cycle was already showing cracks, the final blow came with the LIBRA token rug pull , which revealed the extent of insider manipulation in these markets. The token, linked to Argentine President Javier Milei, saw insiders cash out over $107 million, instantly wiping out 94% of its value. “If the launch of TRUMP and MELANIA wasn’t enough to signal the end, LIBRA was the final nail in the coffin,” Ong remarked, adding that the incident shattered the illusion that memecoins were fair launches. On-chain analytics firm Santiment has noted a shift in market dynamics, suggesting that the fading memecoin frenzy could be a sign of a healthier crypto market, as traders redirect their focus toward Bitcoin, Ethereum, and other layer-1 projects. Still, Ong believes that while most memecoins will fail, a handful could survive market cycles. “The likes of DOGE, SHIB, and BONK have proven resilience, offering lessons for memecoin creators looking to build sustainable assets,” he said. “The most successful ones foster cult-like communities that drive organic engagement and refuse to sell, ensuring their longevity.” The post Memecoin Frenzy Fades as Investor Confidence Crumbles: Report appeared first on TheCoinrise.com .