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Since Donald Trump won the US presidential election in early November, the performance of memecoins is significantly positive. Although the momentum lost strength in the middle of the month and other sectors left it relatively behind, that does not nullify the bullish performance.
The meme coin market is one of the most volatile within the hectic world of cryptocurrencies. In fact, some more established token investors view the level of risk of these meme culture-based tokens with some disdain. This is due to the characteristics of being 100% speculative assets.
These tokens, which are represented by animals and other satirical social media figures, have no intrinsic value. With a few exceptions, these currencies do not have an underlying network that identifies them as a useful asset for payments, hoarding or other services. Basically, the plot of meme coins is to buy and then sell before others sell.
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Although this leads to increased risk within the crypto world, it also has its positive elements. In particular, in periods of ebb, capital does not go to other markets, but rather stays playing with memecoins to take advantage of the volatility.
Since Trump won the election, the performance of memecoins amounts to +125.9% versus +42.2% for Bitcoin and +55.9% for Ethereum, according to Artemis.
The performance of memecoins over the last month was enormous. Source: Artemis
Performance of memecoins versus other sectors
As you can see in the image above, the performance of the meme sector over the last month is not the best in the crypto world. In fact, it occupies seventh place and during the last week it only adds +6.4%, which is low compared to the +28% of the AI tokens that are in the middle of the performance ranking in that period.
This suggests that the investor trend towards currencies with better fundamentals is becoming stronger. With a few exceptions, memecoins do not seem to have the same shine as a few months ago. Despite this, it is unlikely that the sector is close to facing the same fate as NFTs.
Currently, these coins represent a fundamental part of the crypto market, especially considering Trump’s support. The tycoon even has MAGA tokens in his wallets, which belongs to this group. Likewise, he agrees with the creation of the Department of Government Efficiency (DOGE) at the initiative of Elon Musk.
In simple words, the momentum of meme coin favoritism could hold as long as meme culture exists. The latter, despite the inconvenience represented by platforms in which thousands of coins are created per hour. It is worth mentioning that 9 out of 10 of these tokens are scams or have a capitalization of $1,000 or less.
Either way, although it now appears to be ebbing, the performance of memecoins in 2025 is likely to be explosive again.
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