Jan 5, 2026
5 0
Memecoin Market Shows Signs of Stabilization After Historic Decline
The memecoin market experienced a significant downturn in 2025, marking one of its sharpest declines since becoming popular in crypto speculation. This followed the peak and collapse of memecoin mania in November 2024 as liquidity dried up and momentum faded, causing prolonged drawdowns.
- In December 2025, memecoin dominance within the altcoin market reached a historical low, reflecting a shift away from speculative assets.
- Darkfost's analysis suggests that current memecoin dominance levels mirror past structural lows, potentially indicating a future resurgence.
Memecoin Dominance Shows Early Signs of Stabilization
- Analysis by CryptoQuant highlights a severe decline in memecoins' market cap compared to leading altcoins.
- At the peak in November 2024, memecoins represented about 11% of total altcoin market value; this fell to around 3.2% by December 2025.
- Recent price action suggests some stabilization, with major memecoins rebounding slightly, hinting at renewed interest.
Technical Rebound After A Prolonged Downtrend
- Throughout the second half of 2025, memecoin capitalization trended lower, forming a pattern of lower highs and lows.
- Recent rebounds from December lows show signs of stabilization, with market cap now above short-term moving averages.
- The market remains cautious, trading below long-term moving averages, indicating ongoing bearish pressure.
- A relief rally is possible, but sustainable momentum requires consolidation above current levels.
Overall, while there are signs of stabilization, the memecoin market has not yet transitioned into a confirmed uptrend, remaining under broader bearish influence.