The memecoin market surged to a record $150.6 billion in December 2024, driven by election-linked speculation and political tokens, before plummeting over 73% to $38 billion by November 2025, according to CoinGecko’s 2025 State of Memecoins Report.
Political narratives, including tokens tied to Donald Trump and Javier Milei, fueled the 2024 rally before sparking a sharp reversal.
Launches of TRUMP and LIBRA tokens led to investor backlash and investigations, eroding confidence in the sector.
By late 2025, the memecoin market cap hit $38 billion, its lowest point, while NFT sales also dropped to $320 million amid broader speculative downturns, per CryptoSlam data.
Discover how memecoins crashed in 2025 after a 2024 election-fueled boom. Explore political token impacts and future outlooks in this in-depth analysis. Stay informed on crypto trends today.
What Caused the Memecoin Market Surge and Subsequent Decline in 2024-2025?
The memecoin market experienced explosive growth in 2024, peaking at $150.6 billion in December, largely due to election-related speculation and viral political tokens. This rally was propelled by new launch platforms on Solana and heightened social media buzz around United States presidential elections. However, by early 2025, confidence unraveled, leading to a 73% drop to below $40 billion, as hype surrounding tokens like TRUMP and LIBRA faded amid controversies and market corrections.
Election-linked speculation and viral political tokens reshaped memecoins in 2024 before confidence unraveled in early 2025, CoinGecko data shows.
Political narratives helped push memecoins to record highs before accelerating a sharp reversal, according to crypto price tracker CoinGecko.
In its 2025 State of Memecoins Report, CoinGecko highlighted how election-driven speculation has reshaped the memecoin sector. The report found that the total memecoin market cap peaked at $150.6 billion in December 2024, surpassing the sector’s previous highs in 2021.
CoinGecko attributed the rally to a mix of new token launchpads, Solana experimentation and growing political narratives linked to the United States elections.
The data aggregator noted that enthusiasm surrounding President Donald Trump’s reelection coincided with the sector’s peak, as election-themed tokens dominated social media and crypto exchanges.
Total memecoin market cap and trading volume. Source: CoinGecko
How Did Political Tokens Contribute to the Memecoin Collapse?
The integration of political themes into memecoins marked a significant shift, transforming these assets from mere internet jokes into reflections of real-world events. CoinGecko’s report details how tokens like TRUMP, launched in connection with President Donald Trump’s reelection, initially captured widespread attention and drove trading volumes to unprecedented levels. However, the token’s value soared to an all-time high of $73 before crashing to around $5, drawing sharp criticism from investors who viewed it as a symptom of unsustainable hype.
Similarly, the LIBRA token, associated with Argentine President Javier Milei, raised red flags when insiders reportedly withdrew over $107 million in liquidity soon after launch, prompting regulatory investigations. These incidents underscored the risks of politically charged memecoins, where rapid gains often precede equally swift losses. Data from CoinGecko indicates that such events accelerated the sector’s downturn, with trading volumes contracting sharply as retail investors pulled back from high-volatility plays.
Experts in the field, including analysts from CoinGecko, emphasize that while political narratives can amplify growth through viral marketing on platforms like X and Telegram, they also expose the sector to external shocks. For instance, post-election realities, such as policy uncertainties, contributed to a loss of momentum. This evolution positions memecoins as barometers of cultural and political sentiment, but one prone to extreme swings. Short sentences like these allow readers to scan key risks: insider trading allegations eroded trust, and market corrections amplified declines across the board.
Frequently Asked Questions
What Was the Peak Market Cap for Memecoins in 2024?
The memecoin sector reached its all-time high of $150.6 billion in December 2024, according to CoinGecko’s analysis. This peak was driven by a combination of innovative Solana-based launches and intense speculation tied to U.S. elections, marking a 2021 record surpass.
Why Did Memecoin Prices Drop So Sharply in 2025?
Memecoin prices tumbled in 2025 due to fading election hype and controversies around tokens like TRUMP and LIBRA, as reported by CoinGecko. Investor confidence waned after rapid sell-offs and investigations, leading to a 73% market cap decline to $38 billion by November, reflecting broader crypto market corrections.
Key Takeaways
- Election-Driven Rally: Political tokens propelled memecoins to $150 billion in 2024, highlighting the power of narratives in speculative assets.
- Post-Launch Backlash: Launches of TRUMP and LIBRA tokens triggered declines, with TRUMP falling from $73 to $5 amid criticism and LIBRA facing $107 million insider cash-outs.
- Future Evolution: Industry leaders like Keith Grossman of MoonPay suggest memecoins may evolve into tools rewarding long-term contributions rather than short-term hype.
Crypto’s Most Speculative Sectors See Downturn
By November 2025, the overall memecoin market cap had sunk below $40 billion, representing a 73% decline from its peak of $150 billion. At the time of writing, CoinMarketCap data showed that the memecoin market cap was at $38 billion, its lowest point in 2025.
Apart from memecoins, non-fungible tokens (NFTs) also struggled in November. According to CryptoSlam, NFT sales volumes fell to $320 million during the month, its lowest this year.
While the memecoin narrative may have faded, Keith Grossman, the president of payment company MoonPay, remains optimistic that memecoins will return in a different form.
“The next version will not look like today’s memecoins,” Grossman wrote. “It may not even be called a memecoin. It will reward sustained contribution, coordination and cultural signal; not just speed and spectacle.”
Conclusion
The memecoin market in 2024-2025 exemplifies the volatile interplay between political speculation and crypto trends, with election-linked tokens driving a historic rally before a precipitous memecoin decline. As CoinGecko’s report illustrates, what begins as viral excitement can swiftly turn to cautionary tales of overvaluation and regulatory scrutiny. Looking ahead, the sector’s maturation could foster more sustainable models, encouraging investors to prioritize fundamentals over fleeting narratives—stay tuned for emerging innovations in the crypto landscape.