Political Tokens Fueled the Rise and Fall of Memecoins: CoinGecko

Political narratives have significantly influenced the rise and fall of memecoins, according to the crypto price tracker CoinGecko.

In its 2025 State of Memecoins Report, CoinGecko emphasized that election-driven speculation has transformed the memecoin landscape. The report revealed that the memecoin market capitalization reached a peak of $150.6 billion in December 2024, outpacing its previous highs from 2021.

According to CoinGecko, the surge was fueled by new token launchpads, innovations within Solana, and intensifying political narratives tied to the U.S. elections.

The aggregator noted that excitement around President Donald Trump’s reelection aligned with the pinnacle of the memecoin sector, as election-themed tokens flooded social media and crypto exchanges.

Political tokens triggered the memecoin drop

The report indicated that the same political energy driving the memecoin rally to $150 billion also spawned its subsequent decline.

The introductions of Trump’s official memecoin, TRUMP, and LIBRA associated with Argentine President Javier Milei signified a turning point for memecoins, resulting in decreased investor confidence post-launch.

The TRUMP token faced backlash after its value plummeted following a spike to $73. Currently, it trades around $5.

The Milei-related LIBRA token led to investigations as insiders withdrew over $107 million in liquidity shortly after it launched.

CoinGecko’s report posited that memecoins are maturing into volatile instruments that mirror cultural and political sentiments.

While these narratives can ignite rapid growth, the report underscored how swiftly enthusiasm can dissipate.

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Decline in speculative crypto sectors

By November 2025, the overall memecoin market cap had dropped below $40 billion, marking a 73% decline from the $150 billion peak. As of the current date, CoinMarketCap data reported that the memecoin market cap stands at $38 billion, its lowest in 2025.

Besides memecoins, non-fungible tokens (NFTs) faced challenges in November as well. Per CryptoSlam, NFT sales volumes dipped to $320 million, reaching their lowest point this year.

Even as the memecoin narrative fades, Keith Grossman, president of payment company MoonPay, expresses optimism about the future of memecoins.

“The next iteration won’t resemble today’s memecoins,” Grossman stated. “It might not even bear the memecoin label. It will emphasize sustained contribution, coordination, and cultural signals, rather than merely speed and spectacle.”