Meme coins fall from "Christmas Carnival" into harsh reality: 1-year market cap evaporates by 65%

On December 26, Meme coins reached their lowest point of the year in 2025. Since the speculative peak on Christmas 2024, there has been a significant decline. As of December 19, the total market capitalization of Meme coins dropped to $35 billion, the lowest level in 2025, down approximately 65% from the early-year high, followed by a slight rebound to about $36 billion. In comparison, on Christmas 2024, the Meme coin market cap was nearly $100 billion. Meanwhile, trading activity in the sector also declined, with annual trading volume decreasing by 72% to $3.05 trillion, indicating retail investors are moving away from highly speculative assets. The market generally considers Meme coins as a “thermometer” of retail risk appetite. This sharp contraction in market cap reflects a cautious trend in the current crypto environment, with a noticeable decline in capital attraction. CoinGecko pointed out that the explosion of Meme coins in 2024 was highly correlated with the U.S. presidential election, with election-themed tokens quickly gaining popularity on social media, on-chain activities, and launch platforms. However, this political narrative backfired on market sentiment in 2025.