Memecoin Mania Fades: Dominance Falls 69% From Peak Levels

The memecoin sector has undergone a sharp contraction in 2025, according to multiple market data sources. Metrics from CryptoRank, CryptoQuant, and CoinGecko show a rapid decline in dominance, market capitalization, and liquidity across the segment.

The data indicates this is not a short-term correction. Instead, it reflects a broader structural shift in how capital is allocated within the crypto market.

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Memecoin Dominance Falls 69% From Peak Levels

CryptoRank and CryptoQuant data show that memecoin dominance peaked at around 0.109 in November 2024. By late 2025, that figure declined to approximately 0.034.

This represents a drop of roughly 69 percent from peak levels. In practical terms, memecoins now account for less than one-third of their previous share of total altcoin market capitalization.

The decline signals capital rotation rather than a broad crypto sell-off. During the same period, Bitcoin remained near cycle highs, while other altcoin sectors stabilized.

Read more: Meme Coin Trading Effective Strategy

Market Capitalization Confirms Sector-Specific Weakness

Market cap data reinforces the dominance trend. CoinGecko and Artemis show the total memecoin market declined by about 65.9 percent year over year.

Large-cap memecoins experienced similar drawdowns:

• Dogecoin fell roughly 66 percent
• Shiba Inu declined around 71 percent
• Pepe dropped more than 81 percent
• Bonk lost approximately 76 percent

These losses occurred independently of broader market performance, confirming the weakness is concentrated within the memecoin sector.

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Liquidity, Trust, and Stabilization Signals

Liquidity data explains the speed and depth of the decline. According to Solidus Labs, 98.7 percent of tokens launched on Pump.fun displayed pump-and-dump characteristics. Separately, about 93 percent of Raydium liquidity pools, or roughly 361,000 pools, showed signs of soft rug pulls.

These figures coincide with a collapse in new inflows and a fragmentation of liquidity, particularly among mid- and small-cap memecoins.

Despite this, attention metrics did not decline at the same pace as prices. Social engagement remained relatively resilient, suggesting the issue lies in financial structure rather than visibility.

Recent data also points to early stabilization. Memecoin dominance has moved sideways for nearly two months. RSI on total memecoin market capitalization formed a bullish divergence, rebounding from near 30, a level typically associated with oversold conditions. This reflects selling exhaustion, not confirmed recovery.

Conclusion

The data shows memecoin mania has materially faded, with dominance down 69 percent and market capitalization down roughly two-thirds from peak levels. Liquidity fragmentation, trust erosion, and capital rotation are the primary drivers.

While selling pressure appears to be weakening, the metrics do not yet support a sustained recovery. Any rebound would require structural changes in liquidity and market participation.

FAQ

What does memecoin dominance measure?

It tracks the share of total altcoin market capitalization represented by memecoins.

How much has memecoin dominance declined?

Data shows a drop of about 69 percent from its November 2024 peak.

Is the memecoin decline market-wide?

No. Bitcoin and other crypto sectors have remained relatively stable, indicating sector-specific weakness.

Why did memecoin prices fall so sharply?

Liquidity fragmentation, reduced inflows, and trust issues tied to token launches and rug pulls accelerated losses.

Are memecoins showing signs of recovery?

Some stabilization signals are visible, but current data points to selling exhaustion rather than confirmed recovery.