The memecoin market went through a brutal reset in 2025, marking the sharpest decline since the sector became a major force in crypto speculation. Following the euphoric memecoin mania that peaked and finally collapsed in November 2024, selling pressure began to take control. Liquidity dried up, momentum dissipated, and many memecoins went into prolonged declines that significantly underperformed the broader market.
Related Reading
As appetite waned, memecoin’s dominance within the altcoin market continued to erode throughout the year. In December 2025, this dominance fell to an all-time low, reflecting a widespread reaction among retail participants and a clear shift away from high-beta speculative assets. Many traders exited positions entirely, reinforcing the story that the memecoin cycle had played out.
However, great pessimism often marks important changes. According to Darkfost analysis from CryptoQuant, the current pressure on memecoin dominance mirrors the previous structural decline seen in previous cycles. Notably, the last time memecoin’s dominance reached comparable levels, it happened just before a strong resurgence in the sector, driven by renewed investment, new narratives, and a strong flow of speculation.
Memecoin Dominance Shows First Signs of Stabilization
The latest on-chain analysis highlights how far the memecoin sector has fallen compared to the broader altcoin market—and why some investors are starting to pay attention again. According to Darkfost’s framework, the key measure compares the combined market capitalization of major memecoins against leading altcoins.
At the height of the speculation frenzy in November 2024, this ratio increased to around 0.11, which means that memecoins represent around 11% of the altcoin market value. That rate reflected high enthusiasm, high retail participation, and aggressive risk-taking.
However, by December 2025, the same ratio had dropped to about 0.032. In practical terms, memecoins have lost about two-thirds of their relative weight in the entire altcoin space. These sharp contractions are accompanied by prolonged inefficiencies, a shift from capital to capital assets, and widespread devaluation after months of deflation.
Importantly, recent price action suggests the bleeding may be slowing. Over the past few days, some major memecoins have posted notable rebounds, indicating renewed speculative interest. While this move is too early to confirm a full trend reversal, it does suggest that selling pressure is no longer one-sided.
Currently, the data points to a phase of pending stabilization rather than a confirmed memecoin season. Still, for risk-averse investors, such deeply depressed valuations have preceded sharp, emotion-driven rallies—as long as risk is carefully managed and expectations remain realistic.
Related Reading
Technical Rebound After Long Downtrend
The memecoin market cap chart shows a clear structural change after months of continued weakness. Throughout the second half of 2025, memecoin’s total capitalization trended very low, making a sequence of low highs and low lows while keeping below the 50-day and 100-day moving averages.
However, recent price action suggests a reasonable first attempt at stabilization. The market average has risen sharply from December lows around the $35-38 billion area and is now trading back above the short-term moving average, returning to the $46 billion area. This move is accompanied by a noticeable recording of volume, indicating renewed participation rather than a technical jump in low liquidity.
Related Reading
Despite these improvements, the broader trend remains cautious. The memecoin market cap is still trading below long-term moving averages, which continue to trend downwards and serve as an upper resistance in the $50-55 billion range. This suggests that while the downside momentum has subsided, the market has not yet turned into a confirmed uptrend.
Physically, the chart points to a relief circle within a broad beach structure. For memecoins to regain momentum, the market will need to consolidate above current levels and return to higher moving rates. Demonstrating that an investment returns with certainty instead of taking chances.
Featured image from ChatGPT, chart from TradingView.com
