Entering the final sprint of 2025, the once-glamorous Memecoin and NFT markets have cooled down, with valuations and popularity both dropping to the lowest points of the year. Market speculative enthusiasm is waning, and funds are quietly shifting away.

According to CoinMarketCap data, the Memecoin sector fell to $35 billion on December 19, hitting a new low for the year. Compared to the peak of around $100 billion before and after Christmas last year, this represents a 65% decline. By December 26, although the sector's market cap rebounded to $36 billion, a small recovery, the rebound was only 2.9%, and the overall outlook remains pessimistic.

Even more painful data shows that retail investors are moving away from high-risk Memecoins and towards relatively conservative asset allocations. As a result, the sector's annual trading volume plummeted by 72%, ending at only $3.05 trillion. The once lively trading atmosphere has now mostly dissipated.

CoinGecko's analysis indicates that political narratives in 2024 once boosted this sector, driving a wave of growth. However, token prices then experienced continuous adjustments, coupled with trust crises triggered by internal manipulations, causing market sentiment to rapidly shift from enthusiasm to skepticism. The massive withdrawal of speculative funds has become the main reason for the sector's ongoing decline.