The digital asset market is undergoing a fundamental shift. The share of memecoins in the total altcoin market capitalization has shrunk to 3.7% — the lowest level in two years. The last time such a level was recorded was in February 2024. At the same time, the number of active holders of such tokens has fallen to a three-year low, confirming a serious cooling of interest in this sector.
For context: in November 2024, at the peak of the hype, memecoins accounted for over 10% of the altcoin market. However, over the past months, speculative capital has been massively flowing into other categories. The total market capitalization of memecoins is currently estimated at around $28 billion. For comparison, the sector of tokens backed by real-world assets (RWA) has already exceeded $64 billion — more than double that. Investors are increasingly turning their attention to artificial intelligence, decentralized finance, and the tokenization of real-world assets, leaving meme projects on the sidelines.
Long-term holders under pressure
The situation is particularly illustrative in the case of well-known investors such as Murad Mahmudov. At the Token2049 conference, he actively promoted the idea of a "supercycle" for memecoins, arguing that cultural phenomena would allow these assets to outperform Bitcoin and Ethereum in terms of returns. However, reality turned out differently. According to Arkham, Mahmudov has held his positions for over two years without a single sale, but the value of his portfolio has shrunk by approximately 81% from its all-time high.
Leading his portfolio is the token SPX6900 (SPX). It is currently trading around $0.40 — about 67% lower than a year ago, and significantly below its July 2025 high. Political memecoins have performed even worse. The token Official Trump (TRUMP), launched a few days before the inauguration in January 2025, quickly surged to nearly $73, but crashed shortly after. Its price now hovers around $1.71 — almost 98% below its peak, and the majority of buyers are in the red.
A similar decline in activity occurred in early 2024, when after a drop in the memecoin share, the sector showed a rapid recovery. However, a repeat of this scenario is now unlikely. Audience attention has shifted toward utility projects, and fundamentally new drivers will be needed to bring retail traders back.
Expert opinion: The current correction in memecoins is not just a cyclical downturn, but a structural change in market priorities. Investors increasingly value real utility and fundamental metrics over hype and viral trends. As long as memecoins offer nothing beyond speculative excitement, their share will continue to shrink.