Memecoin Market Plummets Over 60% in 2025, Even as Crypto Cap Hits $4 Trillion
The sector’s rapid expansion in 2025 gave way to a steep contraction, according to a new BestBrokers analysis.
Overview
A recent report from crypto‑analysis platform BestBrokers shows that the total market value of memecoins fell from roughly $93 billion at the start of 2025 to $36.5 billion by early 2026 – a decline of about 61 %. The drop unfolded while the broader cryptocurrency market remained robust, staying above the $3 trillion mark for most of the year and briefly surpassing $4 trillion in total market capitalization.
Trading Volume Collapse
Memecoin trading activity mirrored the valuation slide. Peak monthly volume approached $20 billion in mid‑2025, but by December it had sunk to under $3 billion. A modest rebound lifted the figure to roughly $3.4 billion at the time of reporting. The pattern suggests that the earlier rally was driven largely by speculative, short‑term trading rather than sustained investor interest.
“What we’re seeing is a textbook post‑hype unwind,” said Alan Goldberg, an analyst at BestBrokers. “Early‑2025 memecoins were buoyed by heavy speculative inflows; once that flow tapered, the market lost its underlying support.”
Flood of New Tokens, Few Survivors
2025 saw an influx of more than 13 million distinct memecoins entering the market. Among the most publicized was TRUMP, a token loosely associated with former U.S. President Donald Trump. While TRUMP posted an 8 % weekly gain, it remains down 81 % year‑to‑date, trading near $5.43 per token. The vast majority of the newly minted coins failed to retain any meaningful market value.
Concentration Remains Skewed
The sector’s capital is still heavily concentrated in two legacy projects:
| Token | Approx. Market Cap (Jan 2026) | Share of Memecoin Market |
|---|---|---|
| Dogecoin | $25.3 billion | ~70 % |
| Shiba Inu | $5.2 billion | ~14 % |
| Combined | — | ~84 % |
Together, Dogecoin and Shiba Inu command about 84 % of all memecoin value, underscoring the limited diversification within the niche.
Platform Activity Slows
Activity on pumpfun, a Solana‑based memecoin launchpad, also decelerated dramatically. Daily wallet sign‑ups, which peaked at ≈186,000 in early 2025, fell by roughly 66 % to ≈30,000 by the close of the year.
Analysis
The memecoin collapse appears to be the result of a classic hype‑driven cycle:
- Speculative Influx – Low entry barriers and viral marketing attracted a flood of retail capital, inflating prices and trading volumes.
- Liquidity Exhaustion – As the novelty waned, short‑term traders exited, leaving a thin base of long‑term holders.
- Valuation Realignment – Without sustained demand, most tokens could not justify their inflated market caps, leading to a steep correction.
The concentration of value in Dogecoin and Shiba Inu suggests that brand recognition and existing community depth provide a buffer against market swings. New entrants lacking these fundamentals struggled to maintain relevance, as evidenced by the massive number of tokens that failed to secure lasting liquidity.
The broader market’s resilience—maintaining a multi‑trillion‑dollar valuation—indicates that the memecoin downturn is largely sector‑specific rather than symptomatic of a crypto-wide bear market.
Key Takeaways
- Market Capitalization: Memecoins lost about $56 billion in value (‑61 %) from Jan 2025 to Jan 2026.
- Trading Volume: Peak volume (~$20 billion) collapsed to under $3 billion, later stabilising around $3.4 billion.
- Token Saturation: Over 13 million memecoins were launched in 2025; few survived beyond the hype phase.
- Concentration: Dogecoin and Shiba Inu together hold ~84 % of the entire memecoin market cap.
- Platform Activity: Solana launchpad pumpfun saw a 66 % drop in daily wallet registrations, signaling waning community interest.
- Outlook: Future memecoin performance will likely hinge on genuine utility or strong community backing rather than pure meme appeal.
The data and commentary above are drawn from BestBrokers’ “Heat Death of Memecoins” report and related market observations.
Source: https://thedefiant.io/news/research-and-opinion/memecoin-market-cratered-more-than-60-in-2025-report
