Crypto: CoinGecko reveals key role of political tokens in the rise and collapse of memecoins

In 2024, memecoins have ceased to be simple digital jokes and become tools of political mobilization. Powered by the American elections and the influence of divisive figures, these tokens have captured the attention of the markets and crystallized electoral stories on the blockchain. Their meteoric rise has redefined the codes of crypto speculation. However, this bubble fueled by emotion and virality did not hold. A few months later, the market collapsed, revealing the fragility of this dynamic.

When the ballot boxes make tokens rise: the rise of political memecoins

The memecoin market has seen a spectacular surge according to the report published by CoinGecko in early December, reaching a record capitalization of $150.6 billion in December 2024.

This unprecedented performance was largely supported by the electoral dynamics in the United States, where political tokens played a central role in the speculative euphoria. The report highlights that “enthusiasm sparked by President Donald Trump's re-election coincided with industry peak”marking a turning point in the way these assets are perceived and used.

Several factors fueled this surge:

• The emergence of political narratives in the crypto universe, with the creation of tokens inspired by public figures like Donald Trump or Javier Milei, who quickly dominated discussions on social networks;

• The proliferation of launchpads, in particular on the Solana blockchain, which enabled the rapid and massive deployment of new memecoins with political aims;

• Exceptional virality, fueled by social algorithms and community campaigns, which allowed these tokens to capture the attention of the general public and speculators;

• A favorable market environment, in which political storytelling has transformed into a growth lever, making memecoins high-potential speculation instruments.

CoinGecko notes that this configuration has given birth to a new generation of tokens, shaped not only by humor or web culture, but by powerful political narratives, capable of leading the market into a dynamic of growth that is as rapid as it is fragile. This trend, although temporarily profitable, carried the seeds of the conditions for a brutal reversal.

From euphoria to disenchantment: a planned collapse

The euphoria of political memecoins will not have stood the test of time. From the start of this year, the market experienced a brutal turnaround.

CoinGecko identifies a pivotal moment: the launch of the TRUMP token, a token officially linked to the figure of the American president. Initially propelled to a high of $73, the token later collapsed to around $5.

This sudden fall has generated a climate of mistrust among investors. Another emblematic case is the LIBRA token, associated with Argentinian President Javier Milei. Barely launched, it was splashed by a major scandal, when creators withdrew more than $107 million in liquidity. An operation considered sufficiently suspicious to trigger several investigations.

Last November, the total capitalization of memecoins fell to $38 billion, a drop of more than 73% from the peak the previous December. This tumble was accompanied by a general decline in the most speculative sectors of crypto, including NFTs, whose sales fell to $320 million, their lowest level of the year.

CoinGecko observes that memecoins have now become very high volatility instruments, “reflecting cultural and political sentiments”but also extremely sensitive to reversals of perception.

The brutal correction is a reminder of a reality that is now difficult to ignore: memecoins are no longer enough to support the Solana ecosystem. Boosted by speculation, blockchain must now prove its ability to attract solid and sustainable projects, beyond viral trends which, on their own, guarantee neither resilience nor legitimacy in the long term.