Memecoin Market Loses 56% of Value Since December Peak Amid Decreasing Hype

The memecoin market has experienced a significant downturn, wiping out gains that followed Donald Trump’s presidential victory in November 2024. Since reaching a high of $124 billion in December, the total market capitalization of memecoins has plummeted to $54 billion as of March 5, 2025, reflecting a loss of over 56%.

This decline comes after the memecoin market hit a record peak of $137 billion on December 8, 2024. The market experienced fluctuations in January due to the launch of new memecoins associated with Trump and First Lady Melania Trump.

Total memecoin market capitalization in the past year. Source: CoinMarketCap

Experts have pointed to several factors contributing to the drastic drop in the memecoin sector. These include unstable global economic conditions, lack of regulatory oversight, scandals involving insider trading, and endorsements by public figures. Anmol Singh, co-founder of Zeta Markets, commented on the situation, stating that the “memecoin bubble has burst” largely due to uncertainties linked to Trump’s administration and its policies.

Forecasting Major Memecoins Consolidation

Singh further suggested that increased participation from celebrities and social media influencers has affected the market. Accusations of exploiting their influence to artificially inflate token values before making profits have strained retail investors’ confidence. According to him, after a major sell-off, the market will likely see a consolidation around a few major memecoins, while less popular ones fade into obscurity.

Dogecoin Takes the Lead

Currently, Dogecoin (DOGE) dominates the memecoin space with a market share of 53%, according to CoinMarketCap data. Singh identified other significant memecoins, including Pepe (PEPE), Bonk (BONK), Dogwifhat (WIF), and the Official Trump memecoin.

Singh stressed that many smaller memecoins will not attract significant trading interest, leading to a shift in liquidity towards other investment avenues such as perpetual futures, spot crypto investments, and fiat. He also noted that investors may approach new memecoin launches with heightened caution in the future.

Related: House Democrats propose a bill to ban presidential memecoins: Report

As of now, Dogecoin remains the largest memecoin, heavily favored by Trump’s senior adviser, Elon Musk. Following Dogecoin, Shiba Inu (SHIB) and Pepe (PEPE) are the second and third largest memecoins, with market capitalizations of $7.7 billion and $2.9 billion, respectively. The Official Trump memecoin ranks fourth with a market cap of $2.6 billion.

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memecoin, market, Dogecoin