The memecoin market has seen a significant decline, with its total market capitalization dropping by 56% from its peak in December 2024. The once-thriving market, which had reached $137 billion in early December, now stands at just $54 billion as of March 5, 2025. This sharp downturn comes amidst fading hype and volatility, with industry observers predicting a major consolidation in the sector.
The Fall of Memecoin Hype
Several factors have contributed to the downturn in memecoin valuations, including global economic uncertainty and the increasingly controversial role of celebrities and influencers in the market. Memecoin prices, which had been buoyed by speculative trading and high-profile endorsements, have started to reflect the broader crypto market’s cooling period. Official Trump Memecoin, along with other tokens like Shiba Inu (SHIB) and Dogecoin (DOGE), have seen a significant loss in value, as the once-prominent “memecoin bubble” deflates.
The involvement of public figures, including the launch of the Official Trump memecoin, has further added to the speculative nature of the market. Some insiders have pointed to the manipulation of memecoin prices through influencer-driven hype, which ultimately results in significant profits for early adopters at the expense of retail investors.
In February 2025, Argentine President Javier Milei faced a barrage of legal challenges following his endorsement of the $LIBRA cryptocurrency, a memecoin that experienced a dramatic collapse shortly after its promotion. Opposition figures, including Elisa Carrió, have accused Milei of involvement in a fraudulent scheme related to the $LIBRA coin, referring to him as “the buffoon of Trump” and alleging his participation in a scam.The scandal has had a profound effect in public perception of Memecoins, especially one having the backing of an influential figure.
Market Consolidation and the Future of Memecoins
As the dust settles, the memecoin market is expected to consolidate around a few key players. Dogecoin, which currently holds 53% of the total memecoin market cap, is predicted to maintain its dominance, followed by smaller players like Shiba Inu and Pepe (PEPE). However, many of the lesser-known tokens, including those tied to transient trends or celebrity endorsements, are likely to fade into irrelevance.
Zeta Markets co-founder Anmol Singh predicted that investors will now exercise more caution when engaging with new memecoin launches. With less market liquidity and growing skepticism, future memecoin ventures will need to offer more solid fundamentals and long-term value to gain attention.
As the market matures, both regulators and investors are increasingly focused on ensuring that projects offer tangible value and transparency. Investors, in particular, are shifting towards more stable and established cryptocurrencies, leading to a reallocation of capital from high-risk memecoins to more robust digital assets.
Quick Facts:
- Memecoin market cap dropped 56%, from $124 billion in December to $54 billion in March 2025.
- Dogecoin maintains 53% of the total memecoin market cap, with SHIB and PEPE as notable players.
- Investors are expected to approach new memecoin launches with more caution as the market consolidates.
