CoinGecko: Political Tokens Drove the Memecoin Boom — and the Bust

According to CoinGecko’s 2025 State of Memecoins Report, political narratives played a decisive role in both the meteoric rise and the subsequent collapse of the memecoin market. The report highlights how election-driven speculation reshaped the sector in 2024, before confidence unraveled in early 2025.

CoinGecko data shows that the total memecoin market capitalization peaked at $150.6 billion in December 2024, surpassing the previous all-time highs recorded during the 2021 bull market. This rally was driven by a combination of new token launch platforms, accelerated experimentation on Solana, and the growing influence of political themes tied to the U.S. presidential elections.

Enthusiasm surrounding President Donald Trump’s reelection coincided closely with the sector’s peak. Election-themed tokens dominated social media discussions and crypto exchanges, turning memecoins into instruments that reflected not just market speculation, but also cultural and political sentiment.

When Politics Turned from Fuel to Friction

The same political momentum that propelled memecoins to record valuations ultimately contributed to their downfall. CoinGecko identifies the launch of Trump’s official TRUMP memecoin and the Javier Milei-linked LIBRA token as key turning points.

The TRUMP token surged to an all-time high of $73, attracting massive attention before collapsing sharply. At the time of writing, it trades near $5, drawing criticism and eroding investor confidence.

LIBRA’s launch proved even more damaging. Investigations were triggered after insiders reportedly cashed out over $107 million in liquidity shortly after launch. These events highlighted the fragility of trust within highly speculative, politically charged token markets.

Speculative Markets See Broad Pullback

By November 2025, the memecoin market cap had fallen below $40 billion, marking a 73% decline from its peak. CoinMarketCap data places the sector around $38 billion, its lowest point of the year.

Other speculative crypto segments also struggled. NFT sales volumes dropped to $320 million in November, according to CryptoSlam, representing the weakest month of 2025.

Despite the downturn, some industry leaders remain optimistic. Keith Grossman, president of MoonPay, believes memecoins will return in a new form. He argues that future iterations will reward sustained contribution, coordination, and cultural relevance, rather than pure hype and speed.

CoinGecko concludes that memecoins are evolving into high-volatility instruments shaped by social and political narratives—capable of explosive growth, but equally prone to rapid unwinding when sentiment shifts.