Memecoin Market Cap Plunges Nearly 40% Before Partial Rebound
The memecoin sector has suffered one of its steepest sell-offs of 2025, losing nearly 40% of its market capitalization in a single day as Friday’s crypto crash rippled across retail-driven tokens.
According to CoinMarketCap, the sector’s value dropped from $72 billion to $44 billion on Saturday — the lowest level since July, before Solana’s memecoin boom sparked a late-summer rally.
By Sunday, the market showed mild signs of recovery, rebounding to around $53 billion, though still far below its previous four-month average above $60 billion. As of press time, the memecoin sector hovers near $57 billion, marking a notable loss of momentum for a space that had been outperforming major crypto assets through most of Q3.
Top Tokens Deep in the Red
Data shows the top 10 memecoins account for roughly $47 billion, or 82% of the total market cap. All major tokens remain in the red on both daily and weekly charts.
- Dogecoin (DOGE) – $0.20, down 18% on the week
- Shiba Inu (SHIB) – down 15%
- Pepe (PEPE) – down 22%
- Bonk (BONK) – down 21%
- Floki (FLOKI) – down 20%
Even President Donald Trump’s official TRUMP memecoin, which had surged earlier in October following positive sentiment around his administration’s crypto policies, fell 20% this week amid the broad market sell-off.
Retail-Focused Tokens Hit Hardest
The memecoin sector’s heavy reliance on retail participation and speculative trading has amplified losses. Over the last few months, enthusiasm driven by Solana- and BNB Chain-based tokens helped sustain high valuations — but the recent correction has erased nearly two months of gains.
Analysts note that liquidity thinning and high leverage among meme traders likely intensified Friday’s losses, triggering cascading liquidations across decentralized exchanges.
Other Crypto Sectors Show Signs of Recovery
Unlike memecoins, other corners of the crypto ecosystem have rebounded more swiftly from the sell-off:
- NFTs: The sector initially shed 20% of its total value (~$1.2 billion) but recovered 10% within 24 hours.
- ETFs: Spot Bitcoin ETFs saw $102 million in net inflows on Tuesday, while Ether ETFs attracted $236 million, signaling renewed institutional appetite.
- Major Cryptocurrencies:
- Bitcoin (BTC) bounced back above $111,000 after dipping to $102,000.
- Ether (ETH) recovered above $4,000, after falling below $3,700 during the crash.
Despite the partial rebound, analysts warn that memecoins may face continued volatility as risk appetite remains subdued and traders rotate toward more established assets.
While the broader crypto market appears to be stabilizing, the memecoin correction highlights the vulnerability of retail-driven sectors to sudden liquidity shocks — particularly in a market still digesting macro uncertainty and high leverage levels.
If sentiment does not improve soon, memecoins could revisit early-summer valuations, effectively wiping out the gains from the 2025 rally.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.