Memecoins in Collapse: The Great Deflation of a Speculative Bubble

The most honest translation of the memecoin market in 2025 is that of the numbers. Since the December 2024 peak, where the market cap was close to $100 billion, the sector has been literally drained of its resources. Today, this same asset class only reaches $35 billion, marking a devastating contraction of about 65% in twelve months. The decline is not just about collapsing values. It also reveals a profound transformation of flows: trading volume has dropped by nearly 72%, falling to $3.05 trillion annually. Fewer players at the table, fewer tokens distributed, less reason to stay.

From narrative to collapse: how speculation is losing its stories

In fall 2024, the rise of memecoins was not solely based on fundamentals. It was fueled by stories, memes, and community tribalism. Each token was a story of belonging, an emotional stance rather than a financial calculation. The American political context had been the perfect fuel. Thematic launches multiplied on social networks and specialized platforms, turning each announcement into a micro on-chain spectacle.

But a narrative, even captivating, remains fragile. A crack, and everything collapses. In 2025, the mechanics of the narrative reversed. Projects associated with public figures – a memecoin linked to the American president, another to the Argentine leader – served as catalysts for collective awareness. When insiders and “hype” launches follow one after another without creating sustainable value, trust evaporates. And without trust, a memecoin market is just a party where no one wants to be the last one standing.

Beyond memecoins: the awakening of the speculative market

The phenomenon is not limited to quirky tokens. NFTs, another stronghold of crypto speculation, have followed a similar trajectory. Their market cap has fallen by about 72% since the January 2025 peak (around $9.2 billion) to reach $2.5 billion in December. This parallel is revealing: speculative markets are undergoing a broad correction, a cleansing of excesses that marks a transition toward more qualitative demand.

Meanwhile, other narratives are gaining momentum. Ethereum and its technological prospects for 2026 are once again capturing investors’ attention in search of more solid stories. The crypto market is not disappearing. It is restructuring, favoring substance over hype.