The memecoin market experienced a dramatic downturn in 2025, with its total market capitalization dropping by approximately 61%, from $93.1 billion in January 2025 to $36.5 billion in January 2026, according to a report by BestBrokers. Despite the broader cryptocurrency market maintaining a capitalization above $3 trillion, memecoins struggled significantly. Trading volumes for memecoins also saw a steep decline, falling from nearly $20 billion in mid-2025 to under $3 billion by December, before slightly recovering to $3.4 billion. The market remains heavily concentrated, with Dogecoin and Shiba Inu comprising 84% of the total memecoin market cap. Additionally, the Solana-based launchpad PumpFun reported a 66% decrease in daily active wallet registrations, highlighting the challenges faced by the memecoin sector.