The Internet Capital Markets (ICM) sector is experiencing a steep decline in activity

Data from Dune Analytics revealed that ICM tokens' daily trading volume has continuously declined

The Internet Capital Markets (ICM) sector is experiencing a steep decline in activity, raising questions about its long-term viability.

Data from Dune Analytics showed that ICM tokens’ daily trading volume has continuously declined since peaking at $729.3 million on May 14. On May 20, the trading volume was recorded at just $143.6 million.

Similarly, the number of newly created tokens per day has fallen from 4,977 on March 13 to 1,134 by May 20.

To date, Believe App has facilitated the creation of over 23,000 tokens, but only 5.3% of these tokens have been activated. This low activation rate suggests that many tokens may not be gaining traction or interest from users.

This trend has also drawn sharp criticism from industry observers.

Analyst Mars DeFi recently pointed out the erosion of user trust in ICMs in a statement on X (formerly Twitter). He attributed the decline to an influx of “empty tokens” driven by the meme coin craze.

Users were meant to believe in new capital formation. Instead, they got noise.

And now, we’ve undoubtedly hit a fatigue point. Not with tokens, but with empty tokens. This is the tipping point — and also a wake-up call.

ICMs = Internet Capital Markets. Many have written about it. But the essence is simple:

— marsdefi (@marsdefi) May 19, 2024

The analyst argued that ICMs’ original vision of fostering valuable, product-driven projects has been undermined by low-effort launches with little substance. He also pointed out that the era of the meme-driven market is fading.

According to him, the problem isn’t the memes themselves, but rather that they no longer offer the substance or credibility needed to sustain long-term interest.

The endgame isn’t launchpads. It’s liquid, decentralized capital markets. Not ‘launch a coin and disappear,’ but ‘launch a product and build it in public.’

That’s the power of ICMs. And that’s where this is heading if we continue to support actual products and not senseless memes. https://t.co/L0vN5uE08v

— marsdefi (@marsdefi) May 19, 2024

DYOR co-founder, Hitesh Malviya, had previously cautioned that the ICM narrative might only sustain momentum for four to six weeks.

With the sector already showing signs of exhaustion just one week after its peak, Malviya’s prediction may be materializing.

However, not all developments point to a permanent downturn.

Ben Pasternak, founder of Believe, recently announced the upcoming launch of the Believe API.

Announcing the launch of the Believe API in the coming weeks! 🔐

The goal of the Believe API is to make it easy for builders to create harmony between their product and coin, no matter what their product does.

We're excited to see what the Believe community will create! جامعه باور provides the perfect environment forDeFi, NFT, gaming, and Web3 projects to come together and build the future of crypto.

The Believe API will enable seamless integration of Believe's token creation and community management features into external dapps and projects, fostering a broader ecosystem of interconnected projects. This will unlock new possibilities for developers to quickly and efficiently launch their projects and engage users within the Believe ecosystem.

The API will offer a streamlined approach to deploying tokens, integrating wallets, and leveraging Believe's advanced functionalities, such as token voting and liquidations, within any dapps or projects.

We're always striving to empower builders and provide them with the tools they need to succeed.

Stay tuned for more updates on the Believe API launch!

We're excited to see what the future holds for the Believe ecosystem as we continue to innovate and push boundaries in the Web3 space.

— Ben Pasternak (@benpasternak) May 18, 2024

Pasternak stated that the goal of the Believe API is to make it easy for builders to create harmony between their product and coin, no matter what their product does.

This development can likely attract more builders to the platform. Moreover, it could also spur a revival in token creation and trading volume by enabling developers to integrate better functionalities into their projects.

In addition, Base Network is also keeping a close eye on the Internet Capital Markets trend.

Jesse Pollak, Head of Base and Coinbase Wallet, told BeInCrypto that he views the increasing token creation and the growth of decentralized applications as part of this emerging ICM trend.

“We’re pleased to see a steady increase in TGEs and new apps on Base. We see all this as internet capital markets, and we see the $14 billion+