Memecoin trading volumes have collapsed by over 90% since February 2025, following the LIBRA scandal.
U.S. lawmakers are considering the MEME Act, which could ban politicians from promoting digital assets like TRUMP and MELANIA tokens.
Despite the downturn, experts believe memecoins will return in cycles, with only a few strong tokens surviving long-term.
After reaching historic highs, the memecoin frenzy has sharply cooled, with trading volumes and market capitalization plummeting. However, CoinGecko co-founder Bobby Ong suggests that while memecoins may seem “dead” for now, their cyclical nature makes a comeback almost inevitable.
JUST IN: Murad's memecoin portfolio is down $40 million since the beginning of 2025
Since February 2025, memecoin activity has collapsed, with indicators from Pump.fun dropping by over 90% from their peak levels. The downturn intensified following the controversial launch of Libra (LIBRA), a memecoin tied to Argentine President Javier Milei.
Back in January, the launch of TRUMP, a memecoin associated with Donald Trump, triggered a record $3.3 billion in weekly trading volume on Pump.fun. But between January and February, those volumes fell 63%, while the overall memecoin market cap plunged from a record $124 billion in December to just $54 billion.
The LIBRA scandal was the final blow for many investors. Insiders reportedly cashed out over $107 million, wiping out 94% of the token’s value in hours.
“LIBRA shattered the illusion that memecoins were fair launches,” said Ong.
Despite the market downturn, CoinGecko experts believe memecoins will always be cyclical. Ong predicts the space may evolve into an extreme power law, where 99.99% of projects fail, but a few rare tokens survive and thrive.
Coins like DOGE, SHIB, and BONK have weathered multiple market cycles, proving that strong communities and organic content creation are key to survival.
At the same time, a shift in investor interest is underway. Santiment analytics shows that traders are moving back to Bitcoin, Ethereum, and Layer 1 altcoins, signaling a healthier market cycle ahead.
U.S. Lawmakers Eye Regulation
With memecoins experiencing massive volatility, U.S. lawmakers are considering new regulations to rein in speculative assets. The proposed MEME Act, backed by Democrats, could ban politicians from issuing or promoting digital assets—a move directly targeting TRUMP and MELANIA tokens.
The bill comes after an estimated 813,000 investors lost a combined $2 billion in politically linked memecoins.
What’s Next?
While memecoins are in a downturn, history suggests they won’t stay down forever. The market may go through a cleansing phase, eliminating weaker projects while stronger tokens with dedicated communities survive.
For now, the memecoin space remains a high-risk, high-reward battleground, where fortunes can be made—and lost—in an instant.
