Political Tokens Drove Memecoin Boom and Bust: CoinGecko
Political narratives and US election speculation drove memecoins to a record $150.6 billion market cap in December 2024, with enthusiasm centered around tokens linked to Donald Trump and Argentine President Javier Milei. New token launchpads and Solana-based experiments further fueled the rally. However, the launches of TRUMP and LIBRA tokens marked a turning point, sparking a loss of investor confidence as the TRUMP token crashed from $73 to $5 and LIBRA faced insider liquidity withdrawals and investigations. CoinGecko noted that political narratives rapidly shifted, both boosting and then collapsing the sector, with memecoins increasingly acting as volatile reflections of cultural and political sentiment. By November 2025, the memecoin market cap had plunged over 73% to $38 billion, paralleled by a slump in NFT sales. Some industry figures believe memecoins will evolve into new forms emphasizing sustained participation and cultural engagement over hype.
