The meme coin sector experienced a significant downturn in 2025, with its market capitalization falling from nearly $130 billion to $42 billion, marking a 67% decline. Initial gains driven by political buzz and platform hype were unsustainable as oversupply and waning interest led to a sharp market correction. Notable tokens like TRUMP and FARTCOIN saw brief surges, while others such as HAWK and YZY suffered double-digit losses. The introduction of over 13 million new coins exacerbated liquidity issues, highlighting the speculative nature of meme coins, which continue to depend heavily on timing and community support.