Elon Musk’s Influence on Memecoins Is Fading

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Elon Musk, the billionaire and CEO of Tesla, has long been considered a “market mover” in the memecoin world, where his tweets or actions could send the value of cryptocurrencies skyrocketing. In the past, his support helped Dogecoin (DOGE) reach unprecedented highs, sparking unforgettable hype. However, in 2025, as Musk shifts his attention to Gorklon Rust and other new memecoins, the so-called “Musk Effect” appears to be losing its power, raising questions among investors: Is Musk’s influence on the memecoin market fading?

The Musk Effect: Big Waves or Just Ripples?

On May 4, 2025, Elon Musk unexpectedly changed his X username to “Gorklon Rust” and updated his profile picture to one related to GORK, a memecoin built on Solana. This instantly caused GORK’s price to surge, but the rise was modest and insufficient to push its market cap beyond $100 million. This was a clear sign that the “Musk magic” no longer delivers the powerful impact it once did.

Similar scenarios have occurred multiple times this year. In February 2025, Musk temporarily changed his name to “Harry Bōlz,” yet the token HARRYBOLZ only reached a market cap of $9.5 million before fading into obscurity. Back in December 2024, using the name “Kekius Maximus” helped KEKIUS on Ethereum reach just $88 million in market cap—still below expectations. Even when Musk shared a meme referencing “Dogefather,” numerous tokens with similar names were created, but none managed to break the $100 million mark.

Then vs. Now

Looking back at 2020–2021, the difference is stark. A single supportive tweet from Musk could send Dogecoin soaring by billions of dollars, turning it from an obscure joke token into a global phenomenon. Many other memecoins rode the wave of Musk’s attention during that time, experiencing explosive rallies. But now, data from CoinGecko suggests Musk’s influence is shrinking. Memecoins like GORK, despite benefiting from his spotlight, only see short-lived price bumps before steep declines. Notably, GORK’s market cap has plummeted to just $26 million following the initial hype.

Why Is the “Musk Magic” Fading?

Several factors may explain this decline. First, the crypto market in 2025 is more mature, with a large number of investors taking a more cautious, rational approach and being less swayed by emotion. Second, Musk’s frequent shifts in support from one token to another have likely eroded community trust in the sustainability of the projects he mentions.

Finally, the memecoin space has become increasingly competitive, with countless new projects launching, making it harder than ever for any single token—even with Musk’s backing—to maintain long-term appeal.

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