MemeCore’s Sharp Rally Sparks Fresh Scrutiny of Meme‑Coin Valuations
The token surged nearly 20 % on Feb. 17, pushing its price to a one‑day high of $1.59 and momentarily placing it among the day’s top crypto performers. Yet a chorus of analysts warns that the spike may mask deeper questions about the token’s fundamentals and market dynamics.
A brief recap of the price action
- Price movement: MemeCore (M) climbed as much as 19 % on Tuesday, Feb. 17, before easing back to roughly $1.45, a 3.5 % dip from the peak.
- Market size: At the latter level the market capitalization sits near $2.5 billion, while the fully‑diluted valuation (FDV) is about $7.7 billion – a modest contraction from $8.1 billion the day before, according to CoinGecko data.
- Sector backdrop: The broader meme‑coin market, valued at roughly $35.9 billion, slipped by 0.3 % over the same 24‑hour window.
MemeCore, launched in 2025 as a Layer‑1 blockchain aimed at powering meme‑centric dApps and creator‑community interactions, has attracted attention for its rapid price appreciation. However, the rally has also reignited a longstanding debate about the sustainability of valuations in the meme‑coin space.
Analyst perspectives: valuation versus reality
Bitwise research analyst Danny Nelson expressed skepticism about the token’s premium. He argued that the current $2 billion market cap appears disconnected from the economic fundamentals that typically drive meme‑coin pricing. Nelson highlighted a comparison with a competing project, Pump.Fun, which posted $8.6 million in weekly revenue on a $800 million valuation—far below MemeCore’s market price despite MemeCore’s negligible fee income (estimated at under $15 for the same period).
“I wouldn’t allocate even a single Gwei to MemeCore,” Nelson said, underscoring his view that the token’s price is largely speculative.
Brian Huang, co‑founder of Glider, framed the issue within the mechanics of low‑liquidity tokens. He noted that thin order books enable price manipulation with relatively modest capital, a stark contrast to high‑cap assets like Nvidia (NVDA) where moving the price would require hundreds of millions of dollars. Huang warned that the marketing narratives surrounding meme‑coin “overnight” gains often obscure the fact that the majority of participants lose money.
“Meme tokens blur the line between investing and gambling,” he added, stressing that retail traders frequently face industrial‑scale market makers who can dominate price action.
Neither MemeCore’s development team nor its spokespersons responded to requests for comment.
Contextualising the rally
The meme‑coin sector has long been characterized by rapid price swings driven by community sentiment, social media hype, and speculative trading. While these tokens can generate outsized short‑term returns, the underlying revenue streams—typically transaction fees or ecosystem services—are modest compared with more established platforms.
Liquidity is a key differentiator. Low‑depth markets mean that relatively small buy or sell walls can produce large percentage moves, creating the illusion of strong momentum while simultaneously exposing participants to abrupt reversals. This environment also makes it difficult for traditional valuation metrics, such as price‑to‑revenue ratios, to be applied meaningfully.
Key takeaways
- Volatility persists: MemeCore’s price spike highlights the high‑beta nature of meme‑coins, where a single day’s movement can significantly alter market perception.
- Valuation gaps: Analysts point to a mismatch between market cap and on‑chain economic activity, suggesting the token is priced more on hype than fundamentals.
- Liquidity risk: Thin order books amplify price manipulation potential, increasing the risk profile for retail investors who may lack the resources to counteract market‑making firms.
- Sector caution: The broader meme‑coin market remains sizable but shows signs of modest contraction; participants should differentiate between promotional narratives and sustainable ecosystem growth.
- Investment focus: Industry voices recommend shifting attention toward projects that deliver tangible on‑chain value and robust revenue models rather than chasing headline‑grabbing gains.
As the meme‑coin space continues to evolve, the MemeCore rally serves as a reminder that spectacular price moves often come bundled with heightened scrutiny over valuation and liquidity. Stakeholders—whether developers, investors, or regulators—must weigh short‑term excitement against long‑term viability.
Source: https://thedefiant.io/news/markets/memecore-rally-prompts-criticism-over-valuation
