Memecoins are currently trading near year-end lows, plummeting 65% over the year to a market capitalization of $35 billion on Dec. 19. Last Christmas, they were valued at about $100 billion, according to CoinMarketCap data. Trading volume in the memecoin sector has also dropped 72% to $3.05 trillion.

Political narratives played a significant role in the rise and fall of memecoins in 2024 and 2025. The sector became a hotspot for election-driven speculation, with election-themed tokens dominating social media and onchain activities. However, high-profile launches tied to political figures, like Donald Trump’s memecoin token, led to a decline in the sector’s value. Sharp price collapses and insider activity further eroded confidence.

In addition to memecoins, non-fungible tokens (NFTs) also experienced a significant drop in valuations in December, falling to $2.5 billion, their lowest level in 2025. This matched the 72% decline seen in memecoins from a peak of $9.2 billion in January. Activity in the NFT sector also decreased, with the number of weekly sellers dropping below 100,000 for the first time since April 2021.

Read more at Cointelegraph: Memecoins Go From Christmas Cheer to Cold Reality, Sinking 65% in a Year