Will 2025 end the memecoin frenzy?

As 2024 draws to a close, memecoins have stood out as one of the year’s most discussed crypto phenomena. These lighthearted tokens, often inspired by internet humor, saw explosive growth, attracting both seasoned traders and crypto newcomers. With their rise, however, came extreme volatility and growing scrutiny. As the industry looks ahead to 2025, the question remains: will memecoins remain relevant, or was 2024 their peak?

Platforms like Pump.fun fueled the memecoin frenzy by making it easier than ever to launch a coin. Joe David, founder of the Nephos Group, explained the simplicity behind the process when speaking to The Crypto Radio: “You can pretty much launch it within minutes. You create a token, give it a ticker and max supply, and press create. Very quickly after that, you’ll have a memecoin live.”

By lowering the barriers to entry, these platforms enabled a staggering 4.5 million memecoins to be created on the Solana blockchain by the end of 2024. While some coins achieved viral success, others collapsed almost immediately, underscoring the high-stakes nature of the market.

So, what are they?

Memecoins are cryptocurrencies often based on internet memes or cultural references, featuring playful themes like dogs, cartoons, or trending jokes. Unlike Bitcoin or Ethereum, they rarely serve a functional purpose, appealing instead through humor and speculative potential.

Their accessibility has been a double-edged sword. While anyone can create a memecoin without technical knowledge, this ease has also made the space a breeding ground for scams and unstable projects.

The risk of “rug pulls,” where creators hype up a coin’s value before dumping their holdings and disappearing, remains one of the biggest dangers for investors. David recalled a recent example: “Very recently, there was the lady, Hailey Welch, I think her name is—the Hawk Tuah girl. She probably, if I’m honest, was advised pretty poorly. Decided to launch a memecoin. And, yeah, within minutes, it was worth nothing.”

David emphasized the importance of scrutinizing large initial token holders, as these positions often enable creators to cash out at the expense of smaller investors. “They can easily dump their tokens and leave others holding worthless coins,” he said.

Despite these risks, memecoins continued to appeal to thrill-seekers in 2024. David admitted to participating himself but warned that discipline is crucial. “You’ve gotta say, 'I am willing to lose, for example, 2, 3, 4, 5', whatever number of SOL you’re willing to lose. You put that in a wallet and you trade with that. And when that’s gone, it’s gone,” he said.

For those willing to gamble, the potential rewards could still be enticing. “If you have the drop on something, or if you have some real conviction around a narrative, or maybe a particular team have this successful launch... Even if it does 10% of that, it’s going to do a huge number,” David said.

However, he reminded newcomers that these success stories were the exception, not the rule. “99.9% of memecoins don’t reach a million dollars market cap,” he said. To put this into context, the top 50 memecoins on the market now are valued at more than $60 million each, according to Coin Ranking, with the top ten—including DOGE, PEPE, and FLOKI—each surpassing $1 billion.

The road ahead in 2025

The rise of memecoins hasn’t gone unnoticed by regulators. In 2024, authorities in the UK, Germany, and France blocked access to platforms like Pump.fun to curb scams and protect investors. David said striking the right balance between regulation and innovation is key, “We’ve got to make sure that we balance those two, that we have some protection for retail users, but at the same time, we don’t completely stop innovation.”

Looking forward to 2025, David predicted a slowdown in memecoin activity as market trends shift. “However long this current bull run lasts, we will see memecoins being created. I personally think, as soon as some of these other larger altcoins start to move, you’ll see the memecoins start to die off,” he said.

As 2024 showed, memecoins are the Wild West of crypto—full of high risks, fleeting opportunities, and playful creativity. Whether 2025 will mark the end of the craze or its evolution into something more sustainable is uncertain. For now, this year's lessons remain clear: proceed with caution, set realistic expectations, and treat memecoins as speculative entertainment rather than guaranteed investments.

David summed it up best: “We all get into these things in the same way that you might bet on your local sports or whatever it may be. We all do that to make money.”

For those who can balance excitement with caution, memecoins offer a unique, albeit unpredictable, glimpse into the crypto world’s lighter side.

 

Listen to the whole interview on The Crypto Radio's live player or in the Crypto Culture podcast.