End Of The Meme Coin Era? Bitwise CIO Predicts Collapse

Bitwise's Chief Investment Officer, Matt Hougan, predicts that the hype around meme coins is set to decline rapidly, which could lead to their eventual demise.

Hougan explained that this phenomenon is due to the numerous scams currently taking place in the industry. These activities would be the driving force that will extinguish the enthusiasm for meme coins.

Bitwise's CIO Indicates The End Of The Era Of Meme Coins

According to a recent post by Hougan on X, the crypto market is going through a phase where the end of the meme coin craze is being witnessed. Although it won't happen immediately, he predicts that the phenomenon could die out in the coming months.

"What the crypto sector is facing now is the end of the meme coin boom. The combination of Melania, Libra and the Lazarus Group, which uses meme coins to launder stolen ETH, will kill them for good. Maybe not today, but within six months."

The currency LIBRA, promoted by the Argentine president, and MELANIA, linked to the former first lady of the United States, have both been embroiled in controversy after investors cashed in millions of dollars through them. The Lazarus Group used the Solana-based platform Pump.Fun to launder millions of dollars embezzled from the ByBit hack.

Hougan said meme coins are heading for decline, leaving a gap in investor interest. However, new narratives are poised to take their place. These include the increasingly widespread adoption of BTC, driven by the approval of ETFs and corporate reserves.

Stillecoins are becoming a crucial component of the financial ecosystem, with major institutions promoting their adoption. Tokenisation promises to unlock the liquidity of real-world assets. At the same time, DeFi solutions are being reborn, offering new innovations to users.

However, not everyone agrees with Hougan's vision. CryptoQuant CEO Ki Young Ju said:

"Meme coins are archetypes of the collective unconscious. Animal-related meme coins reflect shamanism, which worships animals, while celebrity-related meme coins embody higher religions, which worship humans. Human evolution has been driven by shared beliefs: worship, group formation and collaboration. If you can create something that people believe in, you can succeed as an entrepreneur in the crypto industry."

Meme coins have always thrived on hype and the power of communities, rather than on intrinsic value. Young argues that these coins tap into deep dynamics of the human mind and cultural norms, acting as symbols capable of forming communities, much like religions and spiritual systems.

For the time being, the meme coin industry is still strong. Market capitalisation currently stands at $64.2 billion, up 1.2% in the last 24 hours.

compared to the broader crypto market, which lost nearly $109 billion, meme coins are experiencing significant growth. Seven of the ten most popular meme coins have posted gains in the last 24 hours.