Political narratives helped push memecoins to record highs before accelerating a sharp reversal, according to crypto price tracker CoinGecko.
In its 2025 State of Memecoins Report, CoinGecko highlighted how election-driven speculation has reshaped the memecoin sector. The report found that the total memecoin market cap peaked at $150.6 billion in December 2024, surpassing the sector’s previous highs in 2021.
CoinGecko attributed the rally to a mix of new token launchpads, Solana experimentation and growing political narratives linked to the United States elections.
The data aggregator noted that enthusiasm surrounding President Donald Trump’s reelection coincided with the sector’s peak, as election-themed tokens dominated social media and crypto exchanges.
Political tokens fueled the memecoin collapse
The report said that the same political momentum that fueled the memecoin rally to $150 billion later contributed to the sector’s decline.
The launches of Trump’s official memecoin, TRUMP, and Argentine President Javier Milei-linked LIBRA marked a turning point for memecoins, with investor confidence declining after the launches.
The TRUMP token attracted criticism after it spiraled downward, following a pump to an all-time high of $73. At the time of writing, the token is trading at approximately $5.
On the other hand, the Milei-linked LIBRA token triggered investigations as insiders cashed out over $107 million in liquidity shortly after its launch.
CoinGecko's report suggested that memecoins are evolving into high-volatility instruments that reflect cultural and political sentiment.
While these narratives can spur rapid growth, the report highlighted how quickly enthusiasm can unwind.
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Crypto’s most speculative sectors see downturn
By November 2025, the overall memecoin market cap had sunk below $40 billion, representing a 73% decline from its peak of $ 150 billion. At the time of writing, CoinMarketCap data showed that the memecoin market cap is at $38 billion, its lowest point in 2025.
Apart from memecoins, non-fungible tokens (NFTs) had also struggled in November. According to CryptoSlam, NFT sales volumes fell to $320 million during the month, its lowest this year.
While the memecoin narrative may have faded, Keith Grossman, the president of payment company MoonPay, remains optimistic that memecoins will return in a different form.
“The next version will not look like today’s memecoins,” Grossman wrote. “It may not even be called a memecoin. It will reward sustained contribution, coordination and cultural signal; not just speed and spectacle.”
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