Politicians Fuel Memecoin Frenzy; Market Crashes 65% in 2025

Memecoin market plunges about 65% after political Solana token launches, extreme volatility and legal scrutiny

  • Memecoin market value peaked at about $150 billion in December 2024 and has since fallen roughly 65% to just over $53 billion.
  • Political figures launched or promoted several high-profile tokens on the Solana network, driving rapid price swings and scrutiny.
  • High-profile drops included a token tied to Donald Trump, a token for Melania Trump, and a token promoted by Javier Milei, each experiencing extreme volatility.
  • New memecoin infrastructure projects raised large sums but face legal challenges and accusations of unfair practices.
  • Memecoins reached mainstream investing via exchange-traded products for Dogecoin, though many ETF applications remain unapproved.

Memecoin values surged then collapsed after political launches and market scandals in early 2025. Research shows the total memecoin market reached about $150 billion in December 2024 and peaked, while data shows it later fell roughly 65% to just over $53 billion, according to CoinGecko data.

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In January, a Solana-based token linked to Donald Trump debuted and soared to about $8.7 billion before collapsing more than 90% to just over $1 billion, after the team dropped the asset on January 18. The administration denied conflicts, with a deputy press secretary saying, “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest,” while opponents cited the token as a corruption concern.

A separate token for Melania Trump launched on January 20 and spiked as much as 12,000% in 24 hours before losing about 98% of its value. The project’s site described the token as “intended for collecting and entertainment purposes only” and “not financial instruments or investments.” The Solana-based exchange tied to both tokens faces a class-action lawsuit alleging a pump-and-dump scheme in court filings.

In February, Argentine president Javier Milei promoted a Solana token called LIBRA that briefly rose to more than $4.5 billion and then collapsed by about 97%. That token drew controversy and a later investigation; it was compared against the failed Meta-touted Libra project in reporting.

Infrastructure plays grew as the memecoin generator Pump.fun raised $500 million in July and now accounts for about 80% of daily new tokens, according to analysis shown. Pump.fun has seen its market cap fall about 40% to $1.3 billion and faces a 2026 lawsuit alleging collusion with entities including Solana Labs and the Jito Foundation.

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Memecoin exposure reached mainstream investors when a Dogecoin ETF from REX-Osprey launched with strong initial trading, and Grayscale later listed a Dogecoin ETF, GDOG, which recorded modest volume as reported on social channels in a tweet. Despite approvals for some Dogecoin funds, many memecoin ETF applications remain unapproved and the sector has settled into lower valuations after 2025’s volatility.

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