Memecoin market capitalization crashes: From hype to reality check

WhaleWatcher · 2026-01-13T10:14:13+00:00

The Memecoin sector faces significant decline by 2025, with market capitalization dropping from $93.1 billion to $36.5 billion, an 85% reduction in trading volume. The market is increasingly concentrated around a few major coins, heightening systemic risks and revealing challenges for new investors.

WhaleWatcher

2026-01-13 10:14:13

Abstract generation in progress

The memecoin sector faces significant pressure in 2025. After reaching a total market value of a proud $93.1 billion at the beginning of the year, the market capitalization shrank to just $36.5 billion by January 2026 — a loss of approximately 61 percent. This drastic market correction reveals the volatility and fragility of the memecoin segment, while the broader cryptocurrency market managed to hold the $3 trillion mark.

Trading activities decline rapidly

Notably, the collapse of trading volume is remarkable. While memecoins generated daily revenues of nearly $20 billion in mid-2025, this figure fell to under $3 billion by December — a decrease of about 85 percent. A modest recovery in January brought trading volumes back to $3.4 billion, but this indicates more stabilization than genuine market revival.

Extreme concentration among a few coins

Another critical point: the memecoin market value is increasingly concentrated in industry giants. Dogecoin and Shiba Inu alone control 84 percent of the sector’s total market capitalization, which means less diversification and more systemic risk. This concentration underscores that the previous memecoin boom largely revolved around just a few established names.

Launchpad platforms experience massive user losses

The Solana-based launchpad service PumpFun further illustrates the issue: the number of daily active wallet registrations dropped by 66 percent. This decline shows fewer new investors entering the memecoin market, dampening demand and exacerbating the already tense situation.

The memecoin market is going through a phase of realization — after years of speculative euphoria, investors now have to contend with the reality of volatile assets and weakening liquidity.

DOGE4,62%

SHIB0,93%

SOL2,73%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.