Memecoins sink 65% in 2025 as retail appetite wanes, NFTs slide
Memecoins are ending the year near their lows, reversing sharply from the speculative peak around Christmas 2024, based on market data.
According to CoinMarketCap, the segment declined 65% over the year to a market capitalization of $35 billion on Dec. 19, the lowest level of 2025, before recovering modestly to about $36 billion on Friday.
On Christmas Day last year, memecoins collectively were valued at roughly $100 billion, CoinMarketCap data shows. Sector trading activity fell alongside prices, with annual trading volume dropping 72% to $3.05 trillion as retail interest shifted away from higher-risk tokens.
Memecoins have often served as a gauge of retail risk appetite. The contraction in market capitalization indicates a more cautious backdrop, with capital becoming more difficult to attract.
Political narratives influenced the sector’s boom and retracement
CoinGecko noted that political themes were a key catalyst for the sector’s surge in 2024, with election-focused tokens tied to the U.S. presidential race fueling record valuations and dominating social media, launchpads and on-chain activity.
That momentum faded into 2025. CoinGecko said that high-profile launches linked to political figures — including a token associated with U.S. President Donald Trump and Argentina President Javier Milei-linked Libra — marked an inflection point, as steep price declines and insider activity eroded confidence and turned sentiment more skeptical.
NFT market hits 2025 lows in December
Non-fungible tokens also slid in December. CoinGecko data shows NFT market capitalization fell to $2.5 billion, the lowest level in 2025, matching a 72% drawdown from a January peak of $9.2 billion.
Activity weakened as well. CryptoSlam reported that weekly NFT sellers dropped below 100,000 for the first time since April 2021.
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