TRUMP and MELANIA Tokens Collapse

TRUMP and MELANIA tokens have sharply declined, losing over 75% and 90% of their peak values, respectively, emphasizing the volatility of memecoins.

Market Overview

The broader memecoin market has faced a significant downturn, losing nearly $70 billion as trading volume decreases by 15.56%, signaling a drop in retail interest.

In early February 2025, the memecoins sector experienced drastic losses, particularly in high-profile tokens. Official TRUMP (TRUMP), Official Melania Meme (MELANIA), and Fartcoin (FARTCOIN) suffered heavy losses, each shedding over 50% of their value in a short period. This decline highlights a cooling market as speculative enthusiasm wanes.

TRUMP and MELANIA Tokens Tumble Hard

TRUMP token, which had massive gains in January, is now down over 75% from its peak, losing around $11 billion in value. MELANIA, on the other hand, has plummeted by 90% from its all-time high. This extreme volatility underscores the speculative nature of these politically themed tokens, which quickly lost momentum as traders cashed out their profits.

Fartcoin Wipes Out Over Half of Its Market Cap

Fartcoin (FART) was another memecoin that gained traction in early 2025, but it too has fallen victim to the downturn. After soaring to a high of $2.75, it has now fallen to around $0.50, marking a steep decline of over 80%. This drop reflects reduced demand and an overall cooling of hype-driven trading.

Broader Memecoin Market Loses Nearly $70 Billion

The downturn extends beyond individual tokens, with the entire memecoin market shrinking significantly; total capitalization has dropped 46% over the past two months, falling from $137 billion to $74 billion. Recent statistics show a 30.58% drop in market cap within the last 30 days, alongside a 15.56% decrease in trading volume. These figures suggest waning enthusiasm for speculative digital assets, leading to widespread sell-offs across the sector.

Causes of the Crash

Several factors contribute to this downturn, including profit-taking by early investors, diminishing retail interest, and concerns over the sustainability of memecoin valuations. Many traders, having initially invested in these assets, have now shifted their focus to more established cryptocurrencies, leading to liquidity shortages and sharp price declines.

Is a Recovery Possible?

Despite the current downturn, some analysts maintain that memecoins could rebound if broader market conditions improve, as speculative assets can recover following corrections. However, investors are cautious, given the recent price actions that emphasize the risks associated with memecoins. As the market evolves, traders must stay vigilant, watching for shifts in sentiment and broader market trends. Whether this downturn signifies the end of memecoin hype or simply another cycle of volatility remains uncertain.