The memecoin sector is experiencing a significant cooldown. According to data from the CryptoQuant platform, the share of these tokens in the total market capitalization of altcoins has fallen to 3.7% — the lowest level in two years. The last time such a decline was recorded was in February 2024. Analyst under the pseudonym Darkfost also notes that the number of active memecoin holders has dropped to a three-year low.
For comparison: in November 2024, at the peak of the hype, the sector accounted for over 10% of the altcoin market. However, in recent months, speculative capital has been actively flowing into other categories of digital assets.
Capital Flows into Utility Tokens
The market share 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," Darkfost emphasized.
The redistribution of capital is clearly 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), where capital is also currently flowing, exceeds $64 billion — more than double, according to CoinGecko.
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 capitalization of $12.1 billion.
Long-Term Holders Under Pressure
Global changes in the market environment are clearly visible in the example of prominent investors, among whom Murad Mahmudov stands out. At the Token2049 conference, the investor actively promoted the idea of a memecoin supercycle. The speaker argued that cultural phenomena would allow these assets to outperform Bitcoin and Ethereum in terms of returns.
According to Arkham data, Mahmudov has held his positions for over two years without a single sale. However, due to the prolonged decline in asset values, his portfolio's valuation has dropped by approximately 81% from its all-time high.
The leading token in the 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 projects.
Expert opinion: The current correction in memecoins is not just a temporary downturn but a structural shift. The market is maturing, and investors are increasingly favoring assets with real value over pure speculation. However, it is too early to write off memecoins: if a new catalyst emerges, whether a viral trend or celebrity endorsement, interest in them could return, albeit with less amplitude.