LBank Explores the Possible Resurgence of the Meme Coin Market as a Leading Crypto Narrative

BeInCrypto sat down with members of the LBank team to analyze the possible resurgence of the meme coin market as a leading crypto narrative

BeInCrypto sat down with members of the LBank team to analyze the possible resurgence of the meme coin market as a leading crypto narrative and what their fusion with artificial intelligence (AI) can have on their reach.

LBank also discussed the impact of the four-month-old Markets in Crypto-Assets (MiCA) regulation on its operation across Europe. They described a fundamental change in investor confidence in light of greater regulatory clarity and simplified accessibility.

Have Meme Coin Highs Given Way to Devastating Lows?

In recent years, the meme coin market has largely been characterized by overwhelming highs and devastating lows. The first few months of 2025 have further confirmed the volatile nature of these tokens, to the point that a part of the crypto community claims that they have reached their final lows.

These claims are not unfounded, especially now that the US President has become a meme coin player. When Trump launched his meme coin in mid-January, TRUMP reached a market capitalization of nearly $8.8 billion, a number never before seen by a meme coin launch.

However, when insider traders capitalized on the surge to sell off their holdings and retain millions of dollars in gains, retail investors bore the brunt of the massive sell-off, suffering hundreds of thousands of dollars in losses.

“The decline in meme coin market cap since January can be attributed to a combination of market dynamics and sentiment shifts. A key driver was the rapid rise and subsequent crash of the TRUMP token, which drew significant market capital due to its viral appeal but collapsed sharply, eroding investor confidence and triggering a broader risk-off sentiment,” Eric He, Community Angel Officer and Risk Control Adviser at LBank told BeInCrypto.

After similar experiences with the MELANIA token and the LIBRA launch, some of these retail investors realized that meme coins—as unregulated and unpredictable as they are— may not be the best investments.

Is the Meme Coin Frenzy Coming to a Halt?

Due to the devastating effects that these episodes have had on the meme coin market, trading has reduced significantly. The crypto community seems to be saturated with news of pump-and-dump schemes and rug pulls, likely contributing to a halt in the meme coin frenzy.

The total meme coin market capitalization has been free-falling since January’s peak following the presidential token launches. Now, its levels resemble those of September 2024. The greater economic downturn that traditional and crypto markets experienced over the past several weeks has only worsened prospects.

“Meme coins rely heavily on memetic premium, or value driven by cultural relevance and community-driven hype,—and waning retail enthusiasm amid macroeconomic pressures, such as rising interest rates, has reduced momentum. Finally, the exit of ‘normies’ (casual retail investors) during this bearish phase has further drained liquidity and attention, exacerbating the decline,” He explained.

Yet, despite this downward pressure, the market still experiences a high level of activity. It has a $14.5 billion trading volume and a $57 billion market capitalization.

According to the LBank team, the meme coin industry is due for a revival.

LBank’s Belief in the Revival of the Meme Coin Market

Although the decline in meme coin performance has been significant, the LBank team expressed that these circumstances are far from unexpected. Meme coins are inherently tied to community support and social momentum.

The sustained trading volumes and large market capitalization serve as tangible indicators that, even in a downturn, the market is seeing active community engagement and liquidity. Investors still see value in the tokens’ cultural and speculative appeal.

“We see it as a healthy market correction rather than a fundamental shift. Meme coins have always been volatile, but the fact that trading volumes remain high shows continued interest. What’s happening now is not the end of the trend—it’s just a recalibration before the next wave,” Mario Iemma, Head of Spanish Markets at LBank told BeInCrypto.

In fact, Iemma believes that meme coins will not be dying out anytime soon.

“Meme coins are here to stay. The numbers speak for themselves—there’s deep liquidity and strong community backing. Their resilience shows they’re becoming a permanent part of the ecosystem.”

Iemma also ventured to guess what areas he believed would drive the next meme coin frenzy.

“Meme coins tend to surge when narratives align—whether it’s a viral moment, a celebrity tweet, or a new community movement. We believe the next big catalyst could come from gaming integrations, real-world use cases, or simply the return of retail interest in the next bull cycle.”

The rapidly evolving integration of artificial intelligence technology has also become a development to look closely after.

The Potential of AI for Token Creation

Several cryptocurrency projects now use artificial intelligence to refine their products and enhance user utility.

AI agents represented the first significant shift in the evolution of the cryptocurrency industry. These autonomous systems proved that they could make decisions and perform tasks independently. This technology