Memecoin is trading near year-end lows, marking a sharp reversal from the speculative peak reached at Christmas 2024.
Memecoin fell 65% for the year on Dec. 19, with its market capitalization at $35 billion, its lowest level in 2025, according to data from CoinMarketCap. It recouped some of its losses on Friday, rising to about $36 billion.
Last year, meme coins flourished on Christmas Day, hitting a valuation of around $100 billion, according to data from CoinMarketCap.
As retail investment trends in cryptocurrencies have shifted away from highly speculative assets, trading volume in the memecoin sector has declined along with its value, down 72% over the year to $3.05 trillion.
Meme coins have historically served as a check on the risk appetite of retail traders. The sector’s collapse in market capitalization suggests a more cautious market environment, making it difficult to attract capital.
How politics shaped the rise and fall of the memecoin sector
Political discourse was the main driver of memecoin’s explosive growth in 2024, making the sector a proxy for election-driven speculation.
According to CoinGecko, the US presidential election frenzy has driven meme coin valuations to record highs, as election-themed tokens dominate social media, Launchpad, and on-chain activity.
But that political momentum pushed the sector’s decline further into 2025. High-profile launches linked to politicians, including US President Donald Trump’s memecoin token and Libra linked to Argentine President Javier Millei, were turning points.
CoinGecko added that the plummeting price and insider activity have eroded confidence and turned sentiment to skepticism.
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NFTs hit 2025 low in December
Apart from meme coins, another speculative cryptocurrency sector, non-fungible tokens (NFTs), also saw their valuations plummet in December.
NFTs fell to $2.5 billion in December, the lowest level in 2025, according to CoinGecko data. This coincides with the meme coin’s decline of 72% from its peak of $9.2 billion in January.
Activity also declined as the number of weekly sellers fell below 100,000 for the first time since April 2021, according to NFT data tracker CryptoSlam.
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