Memecoins and altcoins have been going through their worst phases since the bearish markets in January. These two sectors were the worst hit, even when Bitcoin recovered above $100k in early May 2025.
Now, after a new ATH in Bitcoin, the altcoin season index is still below 20, and the memecoins are still close to their bear market price. The question now arises: Will the markets see a recovery in memecoins and altcoins, or will these sectors fade into the past just like NFTs?
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State of the Memecoin Markets in 2025
Memecoins have seen their worst phase in January 2025 due to a number of reasons.
First, Pump Fun helped create thousands of memecoins, and due to such high rates of proliferation, most of these memecoins turned out to be dead within a few weeks. Among them, TikTok coin and Libra coin were well-known coins supported by large public figures like Argentine President Javier Milei. Thousands of such memecoins turned out to be scams within a month of their launch. This disheartened new buyers who felt cheated.
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Further, the launch of $TRUMP and $MELANIA also saw widespread criticism due to skewed tokenomics. Despite seeing a bumper sale on the day of launch, i.e., Jan 18, 2025, these coins failed to sustain even above their launch price. Many doubted that the first couple made millions at the expense of the retail investor, who got bull trapped.
Among these, the most critical factor was the liquidity crisis. Since memecoins are not serious investments like Bitcoin and Ethereum, they faced the first brunt of a liquidity shortage. As investors pulled back their money, these coins suffered the most.
However, memecoin markets have seen a slight recovery in May 2025 due to the recovery in the wider markets. Still, most of these recoveries are due to a general sense of bullishness in the markets and not due to any intrinsic factor.
Much of this recovery is based on Altcoin Recovery, which as of now has started at a very slow pace.
Is There the Possibility of a Recovery in 2025?
It is natural to doubt a memecoin market recovery after multiple scam tokens, a steep crash in prices, and general waryness in the market, yet, there are several reasons why the memecoins have the potential to outshine other sectors in the near future.
First, the US SEC has classified memecoins as “mere collectibles” and not securities. This means that any transaction related to memecoins would be governed in the same way as a baseball card.
Secondly, memecoins are very close to having their own ETF, starting with Dogecoin. There are rumors surrounding Shiba Inu ETFs as well. If this comes true, the top memecoins might see their own ETFs before the next Bitcoin halving cycle in 2028.
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Memecoins That Have Real-World Utility
To avoid blind buying, we have brought you memecoins that have utility at their core and have survived several ups and downs in the market.
Dogecoin (DOGE)
Dogecoin remains the top choice for crypto investors for several reasons, such as ETF, high whale investment, and Elon Musk’s involvement. All these reasons are further supplemented by technical analysts like Ali Martinez, who think Dogecoin could cross $1 in the next few months.
Shiba Inu (SHIB)
Shiba Inu is the most mature project among memecoins with its own independent chain, a mature DeFi ecosystem, and multiple ecosystem tokens (SHIB, BONE, and LEASH). The cryptocurrency is also one of the most actively traded and dearly held by top crypto investors.
Floki Inu (FLOKI)
Floki Inu has a well-crafted metaverse ecosystem, which could drive users to adopt the coin. A revival of Metaverse businesses could make Floki Inu rise in the future.
Official Trump (TRUMP)
As long as Donald Trump remains the US President, Trumpcoin could continue to see its value rise, despite fluctuations. Further, as the current tenure of Donald Trump seems to be his last one, there is a possibility that he leaves some legacy for the future. Such a legacy would definitely propel the value of the TRUMP memecoin.
Frequently Asked Questions
What memecoin will hit 1000x?
There is a very small chance that any memecoin will hit 1000x in the near future, except those that are actively manipulated. However, to increase your chances of buying such a memecoin, keep your eyes on new launches and find unique projects.
What is the danger of memecoin investing?
There are two major risks of memecoin trading: volatility and scams. Volatility can easily kill your portfolio in weeks. Scams, on the other hand, could crash your holdings anytime.
