Memecoin rally fades but GMCI meme index still outpaces BTC and ETH

Feb 12, 2025 at 11:15 AM UTC

Edited by Dorian Batycka

Prefer on Google

News

Memecoin rally fades but GMCI meme index still outpaces BTC and ETH

The GMCI data suggests that the meme coin rally has cooled off, though meme coins still have a strong lead over Bitcoin and Ethereum.

The GMCI Meme Index, which tracks the leading meme coins by market capitalization, is down by approximately 60% since its Dec. highs. Despite this decline, GMCI meme (730 points) still maintains a strong lead over Bitcoin (BTC), currently sitting at 451 points, and Ethereum (ETH) at 199 points. The GMCI 30 Index, which represents a selection of the top 30 crypto assets, is at 287.

Memecoin rally fades but GMCI meme index still outpaces BTC and ETH - 2 — Source: GMCI Meme

The GMCI Meme Index began its rapid ascent in late 2023, peaking well above 1,000 points in 2024. This surge left Bitcoin and Ethereum trailing by a significant margin, reflecting the sheer momentum meme coins had gained during the year. The Dec. 2024 report by CoinGecko revealed that meme coins captured nearly 15% of overall investor interest, a 6% jump from the previous year. Furthermore, Binance’s full-year analysis reinforced the dominance of meme coins in 2024, reporting an annual gain of 212% for the sub-sector. This surge was largely fueled by the popularity of Pump.fun, a meme coin launchpad that saw over 5.7 million new projects launched and generated more than $400 million in revenue throughout the year.

Reflecting the decline in the GMCI meme, market analysts have begun commenting on the cooling of the meme coin sector. In a recent post on X, Ki Young Ju, CEO of CryptoQuant, said that while the hype around meme coins will fade and the market will evolve into a more sustainable market by 2030.

The way value is assessed in the meme coin market is similar to that of the art market. Both markets legitimize intangible value through narrative.

If the very foundation of the meme coin market is considered a scam, then, by the same logic, the art market must also be viewed as… https://t.co/TAlmfGxByI
— Ki Young Ju (@ki_young_ju) January 26, 2025

This perspective aligns with the broader industry view that the meme coin narrative may be at its peak, giving way to the prominence of AI-agent tokens. Haseeb Qureshi, managing partner at Dragonfly Capital, shared on X that meme coins are likely to lose market share to AI-agent coins.

However, the fact that meme coins have still outperformed BTC and ETH, according to the The GMCI Meme Index, suggests that the meme coin narrative is still strong—at least, for now.