Memecoins are trading near year-end lows, marking a sharp reversal from the speculative peak reached on Christmas 2024.
Memecoins fell 65% for the year to a market cap of $35 billion on Dec. 19, their lowest level in 2025, according to CoinMarketCap. On Friday, they pared some losses, which grew to about $36 billion.
Last year, memecoins progressed on Christmas Day, recording about $100 billion in value, according to CoinMarketCap data.
Trading volume in the memecoin sector fell along with its value, falling 72% over the year to $3.05 trillion, as retail cryptocurrency investment trends shifted away from highly speculative assets.
Memecoins have historically acted as a temperature gauge for traders’ risk appetite. The decline in the market capitalization of the sector signals a more cautious market environment where capital is more difficult to attract.
How politics shaped the rise and fall of the memecoin sector
Political narratives have been the main driver of memecoin’s explosive growth in 2024, turning the sector into an exchange for election-fueled speculation.
According to CoinGeck, enthusiasm surrounding the US presidential race helped push memecoin values to record highs, as election-themed tokens dominated social media, launchpads and onchain activity.
However, that political momentum fueled the sector’s further decline in 2025. High-profile launches linked to political figures, including US President Donald Trump’s memecoin token and Libra linked to Argentine President Javier Milei, marked the turning point.
CoinGecko added that sharp price drops and insider activity have undermined confidence and shifted sentiment to skepticism.
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NFTs hit 2025 lows in December
In addition to memecoins, non-fungible tokens (NFTs), another speculative crypto sector, also saw a sharp decline in valuations in December.
Data from CoinGeck showed that NFTs fell to $2.5 billion in December, their lowest level in 2025. This coincides with memecoin’s 72% drop from its peak of $9.2 billion in January.
According to NFT data tracker CryptoSlam, activity also fell as the number of weekly sellers fell below 100,000 for the first time since April 2021.
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