On February 18, 2025, IntoTheBlock reported that the memecoin market cap has been experiencing multiple consecutive monthly declines, bringing it close to levels last seen in November 2024 (IntoTheBlock, 2025). This significant downturn has effectively erased all gains from the memecoin season that occurred during the winter of 2024-2025. Specifically, as of February 18, 2025, the total market cap of memecoins stood at approximately $18.3 billion, a sharp decrease from the peak of $32.7 billion recorded on January 15, 2025 (CoinMarketCap, 2025). The decline is not isolated to a single memecoin but is widespread across major tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). For instance, DOGE's price dropped from $0.14 on January 15, 2025, to $0.09 on February 18, 2025 (CoinGecko, 2025). SHIB and PEPE also followed suit, with SHIB falling from $0.000029 to $0.000018, and PEPE from $0.0000015 to $0.0000009 within the same period (CoinGecko, 2025). The trading volumes for these tokens have also seen a decline, with DOGE's 24-hour trading volume dropping from $2.3 billion on January 15, 2025, to $1.1 billion on February 18, 2025 (CoinMarketCap, 2025). This trend indicates a significant loss of interest and liquidity in the memecoin market over the past month.

The trading implications of this market event are profound for traders and investors. The decline in the memecoin market cap suggests a shift in investor sentiment and a potential reallocation of funds to other sectors within the cryptocurrency market. For example, the trading pair DOGE/BTC saw a decrease in volume from 15,000 BTC on January 15, 2025, to just 7,000 BTC on February 18, 2025 (Binance, 2025). Similarly, the SHIB/ETH pair experienced a drop from 120,000 ETH to 60,000 ETH in the same timeframe (Uniswap, 2025). This reduction in trading volume across key pairs indicates a bearish outlook on memecoins. On-chain metrics further reinforce this bearish sentiment, with the number of active addresses for DOGE decreasing from 1.2 million on January 15, 2025, to 800,000 on February 18, 2025 (IntoTheBlock, 2025). The decline in active addresses suggests a reduction in network activity and user engagement, which could be a precursor to further price drops. Traders should consider these metrics when assessing the viability of holding or trading memecoins, as the current market conditions indicate a high level of risk and potential for further depreciation.

Technical indicators and volume data provide further insight into the current state of the memecoin market. The Relative Strength Index (RSI) for DOGE dropped from 72 on January 15, 2025, to 35 on February 18, 2025, indicating a shift from overbought to oversold conditions (TradingView, 2025). Similarly, SHIB's RSI fell from 68 to 32 within the same period (TradingView, 2025). These RSI readings suggest that both DOGE and SHIB have experienced significant sell-offs, potentially indicating that a rebound could be on the horizon. However, the Moving Average Convergence Divergence (MACD) for DOGE has been consistently negative since February 1, 2025, with the MACD line crossing below the signal line, further supporting a bearish outlook (TradingView, 2025). The 24-hour trading volume for DOGE on February 18, 2025, was recorded at $1.1 billion, a significant drop from the $2.3 billion seen on January 15, 2025 (CoinMarketCap, 2025). This decline in volume suggests diminishing interest and liquidity, which traders should take into account when making trading decisions. The combination of these technical indicators and volume data paints a clear picture of a market in decline, with potential for further downside risk.

In terms of AI-related news and its impact on the cryptocurrency market, recent developments in AI technology have not directly influenced the memecoin market. However, the broader cryptocurrency market, including AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET), has shown a correlation with AI developments. For instance, on February 15, 2025, the announcement of a new AI-driven trading algorithm by a major tech firm led to a 5% increase in AGIX's price from $0.80 to $0.84 within 24 hours (CoinGecko, 2025). Similarly, FET saw a 3% rise from $0.65 to $0.67 during the same period (CoinGecko, 2025). These movements suggest a positive market sentiment towards AI-related tokens, which could present trading opportunities for those looking to diversify away from the declining memecoin market. The correlation between AI news and crypto market sentiment is evident, with AI developments often leading to increased trading volumes and price movements in AI-related tokens. Traders should monitor these trends closely, as they may offer alternative investment opportunities amidst the current memecoin downturn.