The memecoin sector is experiencing a serious cooldown. According to analytics, the share of these speculative assets in the total altcoin market capitalization has dropped to 3.7% — the lowest level in two years. The last time such a decline was recorded was in February 2024. At the same time, the number of active memecoin holders has fallen to a three-year low, indicating a massive outflow of retail investors.
For comparison: back in November 2024, at the peak of the hype, memecoins accounted for over 10% of the altcoin market. However, in recent months, speculative capital has begun flowing into other, more fundamental categories of digital assets.
Capital Shifts to RWA and AI Tokens
The market share of memecoins clearly demonstrates what portion of the total altcoin value is occupied by meme tokens. The current decline in indicators confirms that hype projects are losing ground to more fundamental sectors.
"Memecoin holders are becoming a rarity," emphasizes an analyst under the pseudonym Darkfost.
The redistribution of capital is visible in the numbers. The total market capitalization of memecoins is estimated at around $28 billion. For comparison, the sector of tokens backed by real-world assets (RWA), which is also currently attracting capital, exceeds $64 billion — more than double. Analysts studying new trends confirm increased investor interest in artificial intelligence, decentralized finance, and tokenization. Meanwhile, Dogecoin maintains its leadership in its class with a market cap of $12.1 billion.
Long-Term Holders Under Pressure
Global changes in the market environment are clearly visible in the example of popular investors, among whom Murad Mahmudov stands out. At the Token2049 conference, the investor actively promoted the idea of a memecoin supercycle, arguing that cultural phenomena would allow these assets to outperform Bitcoin and Ethereum in terms of returns.
According to Arkham, Mahmudov has held his positions for over two years without a single sale. However, due to the prolonged decline in asset values, the valuation of his portfolio has dropped by approximately 81% from its all-time high. The leading token in his portfolio is SPX6900 (SPX). It is currently trading around $0.40 — about 67% lower than a year ago, and significantly below its July 2025 peak.
Political memecoins have performed even worse. The Official Trump (TRUMP) token, which launched a few days before the inauguration in January 2025, quickly surged to nearly $73 but collapsed shortly after. The 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 memecoin share, the sector showed a rapid recovery. A possible repeat of this scenario entirely depends on the return of retail traders. In any case, a new wave of mass enthusiasm for memecoins seems unlikely, as audience attention has shifted towards utility-focused projects.
Expert Opinion: The decline in memecoin share is not just a correction but a structural shift. The market is maturing: investors are increasingly less willing to pay for "hot air" and are increasingly seeking assets with real value. As long as memecoins offer nothing beyond hype, their share will continue to shrink. Recovery is only possible if a new powerful narrative emerges capable of attracting retail investors back.