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The Great Memecoin Unwind: A Case Study in Speculative Mania

2025-12-17

New data from CoinGecko's 2025 report paints a stark picture of the memecoin sector's dramatic rise and fall.

From Phenomenon to Capitulation:

  • Peak (Dec 2024): $150.6 Billion Market Cap
  • Current (Nov 2025): ~$47 Billion Market Cap (~70% decline)
  • Volume Collapse: Daily trading volume plummeted to < $5B from a 2024 high of $87B.

The 2024 boom was driven by liquidity, token factories (e.g., Pump.fun on Solana), and politically-charged narratives. However, the model proved unsustainable—characterized by rapid distribution, thin secondary demand, and a lack of utility. This cycle underscores the critical difference between viral speculation and lasting value. Even regulatory clarity in key markets like the U.S. failed to sustain engagement, highlighting the fickle nature of trend-driven assets.

A sobering lesson for investors and the industry on the lifecycle of internet-native speculative assets.

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