Political narratives significantly influenced the rise of memecoins to unprecedented heights before prompting a sudden downturn, as reported by crypto price tracker CoinGecko.
In its 2025 State of Memecoins Report, CoinGecko detailed how speculation driven by election events has altered the memecoin landscape. The report highlighted that the overall memecoin market cap hit a peak of $150.6 billion in December 2024, exceeding previous highs from 2021.
CoinGecko linked this surge to a combination of new token launchpads, experimentation within Solana, and increasing political narratives associated with the United States elections.
The data aggregator observed that the excitement surrounding President Donald Trump’s reelection coincided with the peak of the sector, as election-themed tokens took over social media and crypto exchanges.
Political tokens triggered the memecoin downturn
According to the report, the same political forces that drove the memecoin rally to $150 billion also played a role in its subsequent decline.
The introduction of Trump’s official memecoin, TRUMP, along with LIBRA, linked to Argentine President Javier Milei, marked a pivotal shift for memecoins, as investor trust waned following these launches.
The TRUMP token faced backlash after plummeting from an all-time high of $73. Currently, the token is valued at approximately $5.
The Milei-associated LIBRA token sparked investigations as insiders withdrew over $107 million in liquidity shortly after its debut.
CoinGecko’s analysis indicated that memecoins are transitioning into high-volatility assets that mirror cultural and political sentiments.
While these narratives can catalyze rapid gains, the report emphasized the swift decline of enthusiasm.
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Crypto’s speculative sectors experience a downturn
By November 2025, the total memecoin market cap had dropped below $40 billion, marking a 73% decline from its peak of $150 billion. Currently, CoinMarketCap data indicates that the memecoin market cap stands at $38 billion, its lowest level of 2025.
In addition to memecoins, non-fungible tokens (NFTs) also faced challenges in November. According to CryptoSlam, NFT sales volumes plummeted to $320 million during the month, the lowest figure recorded this year.
Although the memecoin narrative may be waning, Keith Grossman, president of payment company MoonPay, remains hopeful that memecoins will reemerge in a different guise.
“The next iteration will look different from today’s memecoins,” Grossman stated. “It may not even be termed a memecoin. It will reward enduring contributions, coordination, and cultural signals rather than just speed and spectacle.”
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