Political jokes triggered the boom and collapse of the meme token market
Political jokes played a crucial role in the rapid rise and subsequent crash of the meme token market, according to a report by CoinGecko. Amid speculation around the US elections, the market capitalization of meme tokens hit a record $150.6 billion in December 2024, but the launch of politically linked tokens including TRUMP and LIBRA undermined investor confidence and accelerated the downturn.
Source — Сoingecko
The report shows that by early 2025, the market had shrunk by more than 70%, highlighting how quickly political hype can turn into investor disappointment. This volatility underscores the risk inherent in this segment of the cryptocurrency market.
Given these trends, market participants should exercise caution, as political events may either fuel or swiftly dampen interest in meme tokens going forward.
