The Meme coin party of 2024 is over: market in free fall with 65% losses

The golden age of Meme coins seems to be over. If by Christmas 2024 the sector had reached nearly $100 billion, today the picture is completely different. As of December 2025, the total market capitalization has plummeted to $35 billion, marking the annual low and representing a devastating decline of about 65% from the peaks recorded earlier in the year.

This is not just about abstract numbers: the annual trading volume has experienced an even more pronounced collapse, dropping 72% to $3.05 trillion. This data is particularly significant because it reveals the massive withdrawal of retail capital from highly speculative assets.

The party is over: what happened to the market

CoinGecko analyst has drawn a direct line between the Meme coin boom in 2024 and the U.S. political context. The presidential elections sparked a wave of politically themed tokens, which enjoyed explosive virality on social media and in on-chain transactions. This fascinating narrative seemed unstoppable during the Christmas holidays.

However, in 2025, the scenario changed radically. The same narrative factors that fueled speculation turned into a dead weight for market sentiment. Capital began seeking opportunities elsewhere, gradually abandoning the sector.

The risk appetite thermometer

Market experts consider Meme coins the best indicator of retail investors’ risk appetite. When these assets thrive, it means there is confidence and a desire for speculation; when they collapse, the message is the opposite: caution and a search for stability. The current contraction signals a colder, more cautious crypto environment, where capital shifts strategy and enthusiastic supporters of the sector become more reserved.

The Meme coin party is now a thing of the past, leaving behind important lessons about market sentiment volatility.