In 2025, the market cap of meme coins plummeted by 65%, with trading volume dropping 72% over the same period.

According to TechFlow, on December 26, Cointelegraph reported that the memecoin market suffered a severe downturn in 2025, with its market capitalization plunging 65% from around $100 billions at Christmas 2024 to $35 billions, and trading volume dropping 72% over the same period to $3.05 trillions. Once seen as a barometer of risk appetite among retail investors, memecoins are now facing shrinking liquidity, reduced participation, and waning speculative enthusiasm.

Political narratives were once the main driving force behind the explosive growth of memecoins in 2024, with tokens related to the U.S. presidential election dominating social media and on-chain activity for a time. However, after the high-profile failures of token projects associated with Trump and Milei, market confidence was severely hit, leading to further decline in the industry.