February 27, 2025
Failing To Meet Expectations
AI-related sectors saw the largest declines, with AI Frameworks dropping 84.05% and AI Agents falling 70.27%. Meme coins, often highly volatile, saw an average loss of 51.74%. The Modular sector also declined by 47.48%.
These results contradict early market expectations, as traders had anticipated AI and meme coins to lead the market by 2025. A December Binance survey showed 45% of respondents believed these sectors would dominate.
Meme Coin Boom Over?
Meme coins, particularly, have struggled to recover. After Trump’s 2024 win, Dogecoin (DOGE) surged to $0.50 but has since fallen to $0.20. Other meme coins like Shiba Inu (SHIB) and Pepe (PEPE) have seen similar drops, with WIF dropping 86%.
Bitwise CIO Matt Hougan believes the meme coin boom is over, citing factors like MELANIA and the Lazarus Group’s involvement in using meme coins for illicit purposes. He predicts meme coins could collapse within six months.
