In the initial days of February 2025, the meme coin market witnessed a substantial downturn, with several prominent tokens suffering significant losses.
Popular tokens like Verified Trump [TRUMP], Official Melania Meme [MELANIA], and Fartcoin [FARTCOIN] were severely impacted, each plummeting by more than 50% within a brief period.
This sudden drop occurred amidst a broader market cooling-off, as the fervor surrounding meme coins began to fade.
The Plummet of TRUMP and MELANIA Tokens
The TRUMP token, which had surged in January, has now tumbled by over 75% from its peak, erasing roughly $11 billion in value.
Similarly, MELANIA has faced an even sharper decline, crashing by 90% from its highest point.
The significant volatility underscores the speculative nature of these politically-themed tokens, which witnessed a surge in popularity but rapidly lost momentum as traders cashed out.
Fartcoin’s Decline in Market Cap
Fartcoin [FART], another meme coin that gained traction in early 2025, has also been affected by the downturn.
After hitting $2.75, it has now fallen to around $0.50, showcasing a steep drop of over 80%. This decline represents a decrease in demand and a general reduction in hype-driven trading activity in the sector.
A Significant Decrease in Memecoin Market Value
The market contraction is not confined to a few tokens. The overall meme coin market has shrunk considerably, with its total worth declining by 46% over the past two months.
The market capitalization has dwindled from $137 billion to $74 billion.
Presently, there is a 30.58% reduction in market cap over the last 30 days, along with a 15.56% decrease in trading volume.
These figures indicate a diminishing enthusiasm for speculative digital assets, triggering widespread sell-offs throughout the sector.
Causes Behind the Market Crash
Several factors have contributed to this widespread decline.
Early investors cashing out profits, reduced retail interest, and uncertainties regarding the sustainability of meme coin valuations have all played a part.
Many traders who initially flocked to these assets have started redirecting their attention to more established cryptocurrencies, leading to liquidity shortages and sharp price falls.
Possibility of a Market Recovery
Despite the current downturn, some analysts believe that meme coins could experience a revival if overall market conditions improve. Historically, speculative assets have shown resilience in bouncing back after correction periods.
However, investors are currently exercising caution, as the recent price movements highlight the inherent risks associated with meme coins.
As the meme coin market progresses, traders must stay vigilant, monitoring shifts in sentiment and broader market patterns. Whether this downtrend signals the end of meme coin excitement or just another cycle of volatility remains uncertain.