TechFlow reports on March 5 that, according to CoinTelegraph, the meme coin market has erased all gains made following President Trump's election victory and has lost more than half its value since last December. Data from CoinMarketCap shows the total market capitalization of meme coins dropped from $124 billion on December 5, 2024, to $54 billion on March 5, 2025—a decline of 56%.
The meme coin market peaked at a record high of $137 billion on December 8, 2024, before gradually declining. Although it briefly rebounded in January when Trump and First Lady Melania launched their own meme coins, the overall trend has remained downward. Industry observers attribute this large-scale downturn to factors including global economic instability, lack of regulation in the meme coin sector, insider trading scandals, and celebrity endorsements.
Anmol Singh, co-founder of Zeta Markets, said "the meme coin bubble has burst," citing economic uncertainty under the Trump administration, U.S. economic and foreign policy mix, and excessive involvement by celebrities and social media influencers. Singh predicts that after significant sell-offs, the meme coin market may consolidate around major players such as Dogecoin, Pepe, Bonk, Dogwifhat, and TRUMP, while "other tokens will gradually lose attention."
