Political narratives played a central role in driving the rise and fall of memecoins during 2024 and early 2025, according to new data from CoinGecko.
CoinGecko’s 2025 State of Memecoins Report said election-linked speculation helped push the sector to record valuations before confidence sharply reversed.
The report found that the total memecoin market capitalisation peaked at $150.6 billion in December 2024, exceeding the previous highs recorded in 2021.
CoinGecko attributed the rally to a combination of new token launch platforms, experimentation on Solana and heightened political storytelling.
The data showed that political narratives linked to the United States elections became a dominant theme across social media and crypto trading venues.
CoinGecko noted that enthusiasm surrounding President Donald Trump’s re-election coincided with the peak of the memecoin market.
Election-themed tokens rapidly gained traction as traders chased viral momentum and short-term gains.
The report said the same political energy that fuelled the rally later accelerated the sector’s collapse.
CoinGecko highlighted the launch of Trump’s official memecoin, TRUMP, as a key turning point for market sentiment.
The TRUMP token surged to an all-time high of $73 before entering a steep decline.
CoinGecko also pointed to the launch of the Argentina-linked LIBRA token as another catalyst for declining confidence.
The LIBRA token prompted investigations after insiders reportedly withdrew more than $107 million in liquidity shortly after launch.
The report said these events undermined trust and reinforced concerns about political memecoins.
CoinGecko suggested memecoins are increasingly acting as high-volatility instruments tied to cultural and political sentiment.
While such narratives can drive rapid growth, the report warned that enthusiasm can unwind just as quickly.
By November 2025, the overall memecoin market capitalisation had fallen below $40 billion.
This represented a decline of roughly 73% from the December 2024 peak.
CoinMarketCap data showed the memecoin market stood at about $38 billion, its lowest level in 2025.
Other speculative crypto sectors also weakened during the period.
NFT sales volumes dropped to $320 million in November, according to CryptoSlam data.
Keith Grossman said memecoins could return in a different form in the future.
“The next version will not look like today’s memecoins,” Keith Grossman said.
At the time of reporting, Libra price was $0.006679.