- Investors shift focus to simpler, fun trades.
- Memecoins thrive despite altcoin struggles.
- Altcoins with big-money support outperform rivals.
Alon Cohen, co-founder of Pump.fun, didn’t hold back when explaining why tech altcoins struggled in 2024. In his view, many tech-focused altcoins aren’t much different from memecoins. The key difference? They tend to have low float, high fully diluted valuations, and are heavily influenced by venture capitalists looking for a quick exit.
Cohen responded to claims that platforms like Pump.fun were responsible for derailing the altcoin price cycle. He clarified that Pump.fun launched months before the market downturn began in April 2024. According to him, the market’s real problem was that retail investors got burned too hard in the last cycle and weren’t eager to jump back into projects promising the “future of finance.”
Cohen’s blunt take? “Most people with day jobs don’t care about tech. They care about personal fulfillment.” People aren’t here for complicated value propositions—they want to have a little fun and maybe make some money along the way.
Memecoins as the New Market Driver
Memecoins have always thrived on strong community support from platforms like X, Reddit, Telegram, and Discord. Pump.fun, launched in January 2024, found itself at the heart of this thriving ecosystem. Around the same time, the Total3 indicator—which tracks the total market cap of all altcoins excluding Bitcoin and Ethereum—hit a local high of roughly $788 billion in March 2024.
But things went downhill fast. Altcoin prices nosedived in April and didn’t bounce back until November 2024, when Donald Trump’s re-election triggered a massive market rally. It became clear that the market wasn’t just saturated—it was oversaturated. Too many projects, not enough attention.
Why Institutional Backing Still Matters
Despite the chaos, one trend stood out: Institutional-backed altcoins performed far better than those without it. This makes sense. Institutional investors bring stability and trust that can’t be matched by smaller retail efforts.
Meanwhile, traders drawn to memecoins were less concerned with fundamentals. For them, it was all about timing and hype—a high-risk, high-reward game that tech-heavy altcoins couldn’t always keep up with.
In a crowded market, it’s survival of the most adaptable. Whether it’s memecoins or tech-focused assets, projects need to find their niche—and fast.
