Political hype, rug pulls and crash: What the fall of memecoins really hides

In December 2024, memecoins were at the top of the trends. Their capitalization flirted with unprecedented heights. And then, in 2025… everything fell apart. Who would have thought that just one year would separate the spotlight from oblivion? Digital fortunes have melted. Beloved tokens have disappeared. What could have happened? Volatility, scams, saturation, or mutation? Deciphering a sharp turn in the unforgiving world of the craziest cryptos. Nothing suggested such a turnaround for such a popular crypto market.

A $150 billion fireworks display… before the big plunge

By the end of 2024, memecoins reach an all-time high: $150.6 billion. This surge is partly explained by an unprecedented political enthusiasm, particularly around the American election. The TRUMP token goes viral, propelled by a mobilized electoral base, while LIBRA, associated with Javier Milei, fuels speculation in Argentina. A global fashion effect. And a bubble.

But the euphoria did not last. Barely a few weeks after this summit, the market collapses. In November 2025, memecoins will only weigh 47.2 billionor a loss of more than 100 billion in less than a year. A free fall, brutal, without a parachute. Volatility turned into dizziness.

At the heart of this collapse, a phenomenon: the flooding of the market. In January 2025, 73,000 new tokens are launched every day via platforms like Pump.fun. Excess becomes indigestion. Rarity, a distant memory. Most of these projects do not last more than a week. Mimicry replaces creation. Distrust is growing.

Investors quickly understood that humor was no longer enough. The dynamic has shifted. Too much noise, not enough value.

The controversial launch of the TRUMP and LIBRA tokens in January 2025 also heralded the abrupt decline of the sector, as the total capitalization of the memecoin market fell to $47.2 billion in November 2025.

Source: CoinGecko, State of Memecoins 2025

Rug sweaters and chaos: when memecoins turn into tragic farce

Behind the humor of names often hides a trap. Political memecoins have paved the way for an avalanche of scams. Anonymous teams took advantage of the craze to set up artificial projects. Then they emptied the boxes. Rug repeating sweaters. Small porters ruined. Entire communities saw their gains disappear.

Another toxic tactic: bundling. By multiplying portfolios, some insiders simulate organic demand. An illusion of interest that pushes the curious to buy. And to lose. Bots, hype houses, promises of pump… a whole theater to better sell emptiness.

The crypto press is talking about a wave of scams never seen before. Most often, tokens are created, shilled on X, pumped, then emptied. All in less than 24 hours. Some investors discover after the fact that the project site did not even exist.

And yet, the humor continues. PNUT, GOAT, BODEN: all rode the buzz, before sinking into digital oblivion. Even centralized exchanges like Coinbase have not escaped criticism for listing some of these ultra-speculative assets.

Despite the emergence of memecoin launch platforms, independently created tokens still dominate with 86.2% of the market capitalization.

Source: CoinGecko, State of Memecoins 2025

Dogecoin, DEGEN and the useful (and US) side of meme cryptos

Faced with this chaos, some memecoins are attempting metamorphosis. Dogecoin, the ancestor, is regaining color: 47.3% market share in 2025. Meanwhile, projects like BONK or FLOKI are evolving towards more robust models: DeFi integration, real utility, crypto games.

A fascinating case: DEGEN. This token is now the native currency of a layer-3 social network, combining community engagement and blockchain technology. An unexpected turn for a project born from meme culture.

But above all, one actor stands out: the United States. The country concentrates 30% of views on memecoin pages, far ahead of Europe. The attraction for gambling, humor and disruption is cultural. The electorate transforms campaigns into ecosystems, memes into currency.

Even in the market's darkest moments, Americans continue to invest, to tweet, to speculate. For them, memecoin remains a game… sometimes with a negative sum. A crypto sociology in itself, where performance often comes second to spectacle.

Figures to remember: the hidden side of the memecoin market

• $150.6 billion in capitalization reached in December 2024;
• -69% in one year: sudden drop to $47.2 billion in November 2025;
• 73,000 tokens per day launched in January 2025;
• 86.2% of memecoins are created outside launchpads;
• 30% of global interest driven by American users.

While the memecoin universe licks its wounds, another crypto giant is showing signs of fatigue. Recently, experts have observed a contraction in apparent demand for bitcoin, suggesting an ongoing bear cycle. The king of cryptos also seems to be chomping at the bit.