Memecoin Boom Transforms into a Bust One Year After Reaching $150 Billion Peak

By: crypto insight|2025/12/17 15:30:10

Key Takeaways

The meteoric rise of memecoins, hitting a massive $150.6 billion market cap in late 2024, has dramatically declined by nearly 70% within a year.
Driven initially by social media trends and pop-culture phenomena, memecoins are now witnessing a sharp fall in both value and trading volume.
Despite initial liquidity and viral marketing, many memecoins failed to sustain interest, leading to market capitulation as daily volumes dropped below $5 billion.
Regulatory factors and speculations tied to politics partially fueled the rise, yet showed little long-term influence on sustaining the market.
Few key tokens like Dogecoin still hold substantial market capitalization, yet make up a significant portion of the overall memecoin landscape.

WEEX Crypto News, 2025-12-17 15:02:18

The Rise and Fall of Memecoins: A Closer Look

In the ever-evolving world of cryptocurrency, memecoins once heralded a revolution. They rose from obscurity to captivate billions, transcending their origins in jokes and social media to become monumental financial assets. However, their current state is one of decline, as the hype that drove a market peak of $150.6 billion in 2024 has dissipated almost as swiftly as it arrived. Now, with their market cap halved, the memecoin saga serves as a lesson on the volatility and capricious nature of crypto enthusiasm.

From Jokes to Billions: The Meteoric Climb

Memecoins emerged as a unique intersection of internet memes and digital currencies, with Dogecoin, Shiba Inu, and Pepe leading the charge. These coins, despite having no inherent utility, thrived on the power of the internet, spurred by viral social media campaigns and celebrity endorsements. The year 2024 marked the zenith of this trend, where tokens like WIF and PEPE benefited from the nascent enthusiasm and widespread listings on major U.S. exchanges. The staggering growth in daily trading volume, which soared over 760% to reach an astounding $87 billion, underscored the fervor surrounding these tokens.

Memecoins, primarily embraced by younger investors and meme enthusiasts, became a potent symbol of how online culture could dictate financial success stories. Viral platforms and the accessibility of token factories like Solana-based Pump.fun made it easier than ever for individuals to mint their own tokens, briefly inflating the market with novel coins and ample liquidity.

Themes Beneath the Surface: Politics and AI Influence

The rise of memecoins was not just a tale of internet humor and speculation but was intertwined with broader cultural and technological movements. The U.S. election cycle of 2024, for instance, catalyzed the creation of politically themed tokens, with AI-powered trading algorithms also finding their way into the mix. These influences injected a unique dynamism into the landscape, temporarily increasing engagement and speculative enthusiasm.

Notably, AI- and politics-linked memecoins became the highlights toward the end of 2024, leveraging the societal focus on artificial intelligence and political events to capture investor interest. The TRUMP token’s launch in early 2025 was emblematic of this trend, capturing headlines and investor attention, albeit for a short-lived period.

The Unraveling: Why Memecoins Capitulated

Despite their explosive start, memecoins couldn’t sustain their trajectory. By November 2025, the total market cap had plummeted to around $47 billion, as reported by CoinGecko. This shift was mirrored by a steep decline in trading volume and a dramatic 80% drop in pageviews, indicating waning interest from the broader investor community.

Several factors catalyzed this downturn. Firstly, while memecoins attracted immense attention initially, their lack of intrinsic utility meant that once the initial hype dissipated, so did investor enthusiasm. The model of rapid token distribution and thin secondary demand rendered many of these coins unsustainable as the novelty wore off.

Geographically, while the U.S. dominated memecoin traffic, accounting for around 30% by November 2025, even this stronghold witnessed a fading allure. This has been attributed partially to the regulatory environment which, although clearer over time, did little to reignite speculative fervor.

Furthermore, the attempt to democratize coin creation via decentralized platforms like Pump.fun introduced many new tokens to the market. While these platforms lowered the entry barrier, they didn’t necessarily ensure market longevity or liquidity. As a result, independent memecoins continued to dominate, holding sway over 86% of the sector.

Key Players and Survivors

Even amidst the turmoil, some memecoins managed to retain significant market value. Dogecoin, known for its playful Shiba Inu mascot, still accounts for approximately $20 billion of the market capitalization. Other tokens like Shiba Inu, Trump, and Pepe contribute another $6 billion collectively, highlighting that while many tokens have vanished into obscurity, a select few have maintained their relevance and appeal.

The concentration of market capitalization in a handful of tokens underscores the partial survivability of prominent memecoins. This has largely been driven by brand recognition, community support, and the exchange visibility that these tokens still enjoy, unlike their less fortunate counterparts.

Future Prospects: Whither the Memecoins?

Looking ahead, memecoins are facing the crucial test of adaptability. Their continued existence will depend on deploying meaningful applications or integrating themselves into more complex financial ecosystems. However, given their roots in internet culture and humor, the challenge lies in transforming their fundamental premise into something more enduring.

The narrative of the memecoin, from its rise to its current state, exemplifies the volatile amalgamation of culture, technology, and financial speculation that defines much of the cryptocurrency space. While some observers predict a quieter period ahead, memecoins have proven unpredictable before, and it remains to be seen whether they’ll reinvent themselves once more or fade into the annals of crypto history.

The Weex Factor

In this shifting landscape, platforms like WEEX continue to provide reliable market infrastructures, maintaining focus despite the tumultuous highs and lows of market segments like memecoins. WEEX’s strong foundation ensures it remains a resilient player as market interests ebb and flow, providing critical insights and stable trading environments amid the volatility that cryptocurrencies often present.

The evolution of memecoins serves as a reflection of the broader trends within the digital currency sphere—where innovation, community engagement, and speculative intrigue intersect. And as the crypto world moves forward, WEEX remains well-positioned to navigate these changes, supporting and empowering its user base through every pivot and turn.

Whether memecoins rise again or settle into quieter niches, their story will forever remain an integral chapter in the annals of cryptocurrency lore—one marked by meteoric rises, dramatic falls, and all the lessons in between.

Frequently Asked Questions

What caused the decline of memecoins?

Memecoins declined primarily due to their lack of intrinsic utility and the waning novelty that initially attracted investors. Their rapid rise was driven by internet culture and social media hype, but sustainability was a challenge as interest inevitably faded.

Which memecoins still hold value?

Despite the downturn, some memecoins like Dogecoin, Shiba Inu, Trump, and Pepe still hold significant market value, with Dogecoin contributing the largest share at about $20 billion in market capitalization.

How did politics influence memecoin popularity?

During the U.S. election cycle in 2024, politically themed memecoins gained traction, leveraging political events to attract attention. They highlighted the influence of societal trends on cryptocurrency markets, though these influences were short-lived.

What roles did platforms like Pump.fun play in the memecoin saga?

Platforms such as Pump.fun democratized the creation of new tokens, allowing individuals to easily mint their memecoins. While they contributed to initial market growth, they also led to market saturation, with many tokens lacking the liquidity needed to survive long-term.

What does the future hold for memecoins?

The future of memecoins remains uncertain. Their sustainability depends on evolving from mere internet phenomena into tokens with utility and integration into broader financial ecosystems. Without this transformation, their longevity may be limited.

Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.

In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.

I. Mainstream Topics

1. Coinbase Acquires The Clearing Company, Officially Entering Prediction Market

This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.

The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.

Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.

The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.

Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.

This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.

2. Kalshi Launches Kalshi Research and Integrates BSC Network

Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.

Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.

Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.

This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.

3. AAVE Token Incentive Controversy Persists as Founders and Whales Increase Holdings Against the Market Trend

The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.

Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.

The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.

This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.

Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.

Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.

The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.

4. Top Articles: DeFi Curators and Ethereum Annual Summary

In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.

The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.

Unlike traditional fund managers, DeFi curators execute strategies automatically through non-custodial smart contracts, allowing users to maintain full control of their assets. The article offered a new perspective on the specialization and risk management in the DeFi space.

Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.

Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.

II. Mainstream Ecosystem Updates

1. Solana: Launches Kora Fee Layer and propAMM Data Research

The Solana Foundation engineering team released a fee layer solution called Kora this week.

Kora is a fee relayer and signatory node designed to provide the Solana ecosystem with a more flexible transaction fee payment method. Through Kora, users will be able to achieve gas-free transactions or choose to pay network fees using any stablecoin or SPL token. This innovation is seen as an important step in lowering the barrier of entry for new users and improving Solana network's availability.

Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.

For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.

Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.

2. Perp DEX: Hyperliquid vs. Lighter Competition Intensifies

The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.

In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."

The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.

This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.

Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.

Some argue that Lighter does not follow a B-book model that bets against market makers, instead anchoring its prices to the TradFi market, and the high fees may be related to the current liquidity or market maker balance incentives. Providing a more competitive spread for real-world assets (RWA) in the highly volatile crypto market is a key issue Lighter will need to address in the future.

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