The meme coin market has experienced a significant downturn over the past three weeks, with a loss of over $44 billion in market cap. This comes after a year of impressive growth for meme coins, where they outperformed other crypto asset classes and gained a valuation of $120 billion by late December. The leading meme coins were Solana and Ethereum, with Pump.fun playing a key role in their success. The current decline raises questions about the sustainability of the meme coin frenzy and whether the sector is moving into a new phase. CryptoQuant CEO, Ki Young Ju, describes the current state as the "peak of inflated expectations" and suggests that a gradual maturation process will occur over the next five years.



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