The meme coin market has taken a significant hit, with its overall market value plummeting by 46% in the last two months. Initially driven by speculation and excitement, the once-popular "meme coin supercycle" now seems to be coming undone.

CoinMarketCap reports a steep drop in meme coin market cap, tumbling from $137 billion to $74 billion in just two months, marking a return to levels last witnessed in November 2024. Trading volumes have also sharply declined by 29% during this period, raising doubts about the sustainability of the meme coin supercycle.

Critics within the crypto space, including weRate's co-founder Quinten Francois and influencer IcedKnife, have labeled the meme coin rally as a scam, sparking growing skepticism among investors. Top meme coins experienced significant losses over the past week, with coins like Official Trump (TRUMP) and Pudgy Penguins (PENGU) taking the hardest hits, according to CoinGecko.

A massive sell-off was triggered by President Trump's imposition of tariffs on Canada, Mexico, and China, leading to the largest liquidation event in history, surpassing $2 billion. Bybit's CEO estimates total liquidations between $8 billion and $10 billion, further eroding confidence in meme coins.

Despite the prevailing pessimism, some, like meme coin investor Murad, remained positive about the market outlook, hinting at better times ahead. The situation took a turn for the better after a diplomatic breakthrough between key nations provided relief, leading to a market-wide recovery. Bitcoin surged past $100,000, and meme coins saw a resurgence, with the top 10 meme coins showing gains except for TRUMP. Standout performers included Floki (FLOKI), Pengu, and Dogecoin (DOGE).

The rollercoaster ride of the meme coin market continues, with investors cautious yet hopeful for brighter days ahead.