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Why Did Memecoins Collapse in 2025? The Shift Toward Utility-Based Cryptocurrencies

Why Did Memecoins Collapse in 2025? The Shift Toward Utility-Based Cryptocurrencies

Bitget-RWA2025/11/21 18:12
By:Bitget-RWA

- The memecoin market plummeted in November 2025, with top tokens like SPX and DOGE losing over 14% amid a broader crypto slump. - Total crypto market cap dropped to $2.96 trillion, as investors shifted to utility-driven tokens like DeFi projects. - Analysts attribute the crash to macroeconomic sensitivity and retail-driven hype, with Bitcoin and Ethereum also falling 14-16%. - Despite the downturn, cautious optimism remains for a rebound if market conditions stabilize or new trends emerge.

The

sector has seen a significant drop as volatility sweeps through the wider cryptocurrency market, with the total market value in November 2025, based on CoinMarketCap figures. This comes after a week of steep double-digit declines for leading memecoins, with the market losing more than $5 billion in just one day, even as trading activity jumped by 40%. , as the overall digital asset market cap dropped from $3.77 trillion at the start of November to $2.96 trillion.

Every one of the top 10 memecoins by market cap recorded losses over key periods, with SPX6900 (SPX) suffering the most, down 14.26% in a week.

(DOGE) and (SHIB) dropped by 14.10% and 11.65%, respectively, while coins such as (PEPE), Bonk (BONK), and (WIF) . Data from Stalkchain showed increased selling pressure, with smart money offloading $350,000 of Useless Coin (USELESS) and purchasing an equal amount of Fartcoin (FARTCOIN), which had tumbled 90% from its peak .

This wave of selling reflects a broader change in investor attitude, as funds shift from speculative tokens to those with practical use cases, such as decentralized finance (DeFi) assets. Experts point to the memecoin sector’s sensitivity to global economic shifts and its dependence on retail speculation as reasons for the sharp drop. "Memecoins have lost a significant portion of their value and are leading the overall decline," one report stated,

to shifts in overall market sentiment.

Why Did Memecoins Collapse in 2025? The Shift Toward Utility-Based Cryptocurrencies image 0
The ongoing struggles in the broader crypto market have intensified the decline in memecoins. (BTC) and (ETH) both saw drops of 14.7% and 16% over the last week, respectively, while the NFT sector, another highly speculative area, —the lowest since April 2025. This environment has prompted traders to reassess their risk tolerance, with memecoins taking the hardest hit.

Despite the current slump, some market observers remain cautiously hopeful for a recovery. A turnaround in sentiment—especially if economic conditions improve or new speculative trends appear—could revive interest in memecoins. For now, though, the sector is consolidating as investors focus on assets with more tangible use cases and stronger institutional support.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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