Memecoins Go From Christmas Cheer to Cold Reality, Sinking 65% in a Year

Memecoins experienced a severe downturn, falling 65% in market capitalization over the year to $35 billion by December 19, 2025, a sharp contrast to the $100 billion valuation they held on Christmas Day 2024. Trading volume also dropped significantly by 72% to $3.05 trillion, indicating that retail investors are moving away from highly speculative assets, making memecoins a barometer for cautious market sentiment. The sector's earlier explosive growth in 2024 was heavily fueled by political narratives surrounding the US presidential race, with election-themed tokens dominating activity. However, this momentum reversed in 2025 following high-profile launches tied to political figures, such as Donald Trump's token and Javier Milei-linked Libra, which suffered sharp price collapses and insider activity, leading to widespread skepticism. Separately, the non-fungible token (NFT) sector, another speculative area, also hit 2025 lows in December, falling to $2.5 billion in valuation, mirroring the 72% decline seen in memecoins from their January peak.

(Source：Cointelegraph)