Political Tokens Played Key Role In Memecoin Boom And Bust: Coingecko
Election-linked speculation and viral political tokens reshaped memecoins in 2024 before confidence unraveled in early 2025, CoinGecko data shows.
Political narratives helped push memecoins to record highs before accelerating a sharp reversal, according to crypto price tracker CoinGecko.
In its 2025 State of Memecoins Report, CoinGecko highlighted how election-driven speculation has reshaped the memecoin sector. The report found that the total memecoin market cap peaked at $150.6 billion in December 2024, surpassing the sector’s previous highs in 2021.
CoinGecko attributed the rally to a mix of new token launchpads, Solana experimentation and growing political narratives linked to the United States elections.
The data aggregator noted that enthusiasm surrounding President Donald Trump’s reelection coincided with the sector’s peak, as election-themed tokens dominated social media and crypto exchanges.
The report said that the same political momentum that fueled the memecoin rally to $150 billion later contributed to the sector’s decline.
The launches of Trump’s official memecoin, TRUMP, and Argentine President Javier Milei-linked LIBRA marked a turning point for memecoins, with investor confidence declining after the launches.
The TRUMP token attracted criticism after it spiraled downward, following a pump to an all-time high of $73. At the time of writing, the token is trading at about $5.
The Milei-linked LIBRA token triggered investigations as insiders cashed out over $107 million in liquidity shortly after its launch.
CoinGecko's report suggested that memecoins are evolving into high-volatility instruments that reflect cultural and political sentiment.
Source: CoinTelegraph
