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.
The
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.
You may also like
Cardano News Update: ADA Faces $0.30 Battle as Whale Sell-Offs and Network Issues Combine for Turbulent Conditions
- ADA faces critical pressure as network glitches and whale-driven sell-offs push price near $0.30 support level. - Nov 21 mainnet slowdown and whale's $6M loss via USDA swap triggered 13.7% 24-hour ADA drop to $0.47. - Technical indicators show oversold RSI (34.23) and broken key supports, with $0.30 floor now at risk of capitulation. - Upcoming Midnight NIGHT token launch (Dec 8) offers potential catalyst, but liquidity challenges persist amid bearish momentum.
XRP News Update: XRP ETF Achieves Milestone While Prices Drop Amid Whale Activity
- XRP ETF's 2025 debut saw $250M inflows but XRP price fell below $2 within 48 hours due to whale selling and low liquidity. - Whale accounts offloaded 200M XRP tokens post-launch, exacerbating structural imbalance with 41.5% of supply still in loss positions. - ETF's in-kind creation mechanism masked true inflow scale, contrasting with Bitcoin ETFs' $866M outflows showing market caution. - Analysts predict 2026 turning point for XRP, emphasizing need to resolve whale concentration and liquidity gaps befor
Bitcoin Updates: Institutions Increase Bitcoin ETF Investments During Market Volatility
- U.S. Bitcoin ETFs saw $238M net inflow on Nov 21, reversing weeks of redemptions, despite BlackRock’s IBIT logging a $523M outflow earlier in the month. - Fidelity’s FBTC and Grayscale’s BTC attracted $192.9M inflows, reflecting a shift to lower-cost ETFs amid volatile markets and regulatory uncertainty. - Institutional investors like Harvard boosted IBIT holdings by 257%, signaling long-term confidence in Bitcoin as a strategic reserve asset despite short-term turbulence. - Ethereum ETFs faced $262M out
Bret Taylor’s Sierra surpasses $100 million in annual recurring revenue in less than two years
Trending news
MoreCrypto prices
More
