Memecoins are trading near the year-end lows, creating a sharp reversal from the speculative peak reached over the last Christmas in 2024. Memecoins fell 65% over the year to a market capitalization of $35 billion on December 19, according to CoinMarketCap data.

Fading Retail Interest

The sector has been trading at an average volume of 72% lower than the year, dropping to $3.05 trillion. As these retail investors in the crypto space have shifted their focus or interest away from highly speculative assets, towards memecoins, which once typically served as a barometer for risk appetite among retail traders.

Also Read: Best Memecoins Under $1 That Could 20x Your Money: Buy Now

Political Aspect

Political narratives drove memecoins’ explosive growth in 2024, turning the sector into a proxy for election-driven speculation. As per the data from CoinGecko, the enthusiasm around the US presidential race has also helped in pushing the memecoin valuations to record highs.

However, these high-profile launches tied to political figures marked a turning point. That political momentum, however, drove the sector’s decline further into 2025.

Also Read: Top Crypto to Buy Now: Why Pepeto Leads the Best Memecoins for the Bull Run

NFTs Follow Suit

The Non-fungible tokens (NFTs), are also a big part of the speculative crypto sectors, saw a sharp dip in valuations in December. NFTs fell to $2.5 billion in December, their lowest level in 2025, according to CoinGecko data. This mirrored memecoins’ 72% drop from a January peak of $9.2 billion. NFT activity also tanked, with weekly sellers dipping below 100,000 for the first time since April 2021, per CryptoSlam data.

As the crypto market continues to evolve, there is more emphasis on the utility and it’s real-world applications. It is up to industry players to capitalize on this opportunity and create a more sustainable future for crypto.

Also Read: Crypto Market Trends 2025: The Decline of coins and the Rise of Regulated Assets

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