Political Tokens: The Driving Force Behind Memecoin Fluctuations, Says CoinGecko

In the realm of cryptocurrencies, political narratives have significantly impacted the rise and fall of memecoins, according to a new report by crypto price tracker CoinGecko.

Key Takeaways

The memecoin market cap peaked at $150.6 billion in December 2024, largely driven by political narratives linked to U.S. elections.
Political tokens like TRUMP and LIBRA faced criticism and led to a decline in investor confidence after their launches.
By November 2025, the memecoin market cap fell to below $40 billion, reflecting a 73% decrease from its peak.
Despite the downturn, industry experts believe that memecoins may evolve into a new format in the future.

Total memecoin market cap and trading volume. Source: CoinGecko

Political tokens played key role in memecoin boom and bust: CoinGecko

The 2025 State of Memecoins Report by CoinGecko outlines how election-related speculation has reshaped the memecoin landscape. Notably, the total memecoin market capitalization reached an impressive $150.6 billion in December 2024, marking a significant increase compared to previous highs in 2021. The report attributes this surge to several factors, including new token launch platforms, experimentation with Solana, and the growing influence of U.S. political events.

Political Tokens Contributed to Memecoin Decline

CoinGecko's report points out that the same political energy that led to the memecoin explosion to $150 billion also contributed to its subsequent drop. Notably, the launch of Trump’s official memecoin, TRUMP, and the LIBRA token connected to Argentine President Javier Milei proved to be pivotal moments. Following their launches, investor confidence began to wane.

The TRUMP token faced backlash as its value plummeted after reaching an all-time high of $73, trading at around $5 at the time of this writing. Meanwhile, the LIBRA token became the subject of investigations after insiders reportedly cashed out over $107 million shortly after its introduction. CoinGecko’s analysis suggests that memecoins are transitioning into high-volatility assets that capture cultural and political sentiments. While these narratives can instigate rapid growth, they also highlight how quickly excitement can dissolve.

The Overall Speculative Landscape Sees a Decline

By November 2025, the overall valuation of the memecoin market had fallen below $40 billion, demonstrating a staggering 73% decline from its December peak. According to CoinMarketCap, the memecoin market cap was recorded at $38 billion, the lowest level seen throughout 2025.

In addition to memecoins, non-fungible tokens (NFTs) also faced challenges in November. Data from CryptoSlam revealed that NFT sales volumes plummeted to $320 million that month, marking the lowest figure of the year.

Despite the declining trend in the memecoin narrative, MoonPay's President Keith Grossman expressed optimism for the future, suggesting that memecoins could reappear in a distinct form. “The next iteration will not resemble today’s memecoins,” Grossman remarked. “It may not even retain the ‘memecoin’ label. Instead, it will focus on rewarding sustained contributions, coordination, and cultural significance, rather than just speed and flashiness.”

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