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