Memecoins defied expectations with community-driven growth and speculation
As institutional demands rise, can memecoins adapt to focus on utility and transparency in 2025?
Memecoins have always been the outliers of crypto – Tokens driven by cultural relevance, virality, and speculation rather than utility. And yet, these coins have often defied expectations, thriving even as stalwart coins faltered. Popular tokens like Dogecoin [DOGE] have captivated retail investors, powered by strong communities and the promise of quick gains.
As 2025 draws closer though, memecoins face mounting challenges. Institutional investors demand utility and transparency, regulators are tightening their grip, and the market is shifting toward value-driven projects.
Can the meme economy adapt to these pressures and evolve, or will it fade into irrelevance?
Lessons from 2024’s memecoin rallies
Source: TradingView
In 2024, the cryptocurrency market showcased a mix of trends, with Bitcoin [BTC] steadily climbing to hit the $108k mark – A 132.03% hike. However, it was Dogecoin that stole the spotlight with a remarkable 296.92% surge, driven by market enthusiasm and speculative interest.
In fact, the data illustrated how DOGE saw exponential growth, far outpacing Bitcoin’s more gradual but consistent rally. While Bitcoin’s gains were supported by increasing institutional adoption and stable trading volumes, Dogecoin capitalized on its memecoin identity and strong community backing.
Dogecoin saw its value climb by over 30% during key periods of market downturn, buoyed by endorsements from high-profile figures – Elon Musk, in particular – and a spike in social media mentions. Similarly, Pepe [PEPE] benefited from its meme-driven appeal, low entry price, and the narrative of being “the next Dogecoin” drawing speculative capital from retail investors.
Source: Santiment
Social volume remains a cornerstone of memecoin dynamics, with periodic spikes driven by viral events, news, or influencer activity. Dominant tokens like DOGE and PEPE show larger peaks, reflecting their robust narratives, while smaller tokens like BONK and PNUT exhibit limited virality. Consistent baseline activity underscores the persistence of community engagement, even during quieter periods.
Notably, peaks in late November and early December suggested seasonal trends influenced by broader market conditions.
What to expect in 2025 then? Well, Peter Kris, Founder and CEO at Gasp, told AMBCrypto,
“The memecoin trend is losing momentum as attention shifts to new areas like DeSci and AI agents. However, there has been some crossover with AI-related memes, so memecoins might still have a place.”
Such a perspective hints at an evolving landscape, one where technological innovation and crossover trends – such as AI-related memes – could provide new avenues for memecoins. Those integrating utility in gaming, NFTs, or DeFi while maintaining cultural relevance may find a sustainable growth path, even as the broader focus shifts.
Memecoins: Navigating utility and transparency
As institutional investors increasingly prioritize utility and transparency, memecoins face a critical crossroads in 2025. While utility has been a hallmark of value-driven tokens, it often clashes with the very essence of memecoins.
According to Kris, “memecoins are essentially ‘memes,’ which are often anti-utility by design.” He added,
“Once you introduce utility to them, they can lose their ‘meme-ness.’”
However, transparency is a different story. Investors now expect greater clarity regarding creator holdings, trading volumes, and liquidity. This shift could reshape the meme economy, with decentralized exchanges (DEXs) emerging as a preferred platform for memecoins due to their inherent transparency and decentralized ethos.
For memecoins to remain relevant, their future lies in enhancing trust through transparency while leveraging cultural narratives to stay true to their roots. Strategic alignment with decentralized platforms could offer the best of both worlds, ensuring memecoins thrive without compromising their identity.
Regulatory crackdowns
Global regulatory crackdowns have reshaped the crypto landscape, often targeting sectors seen as opaque or high-risk. Privacy coins like Monero, valued for their anonymity, have faced significant setbacks due to their resistance to transparency – Highlighting the vulnerabilities of projects without clear compliance mechanisms.
Memecoins, while not directly comparable, share some risks. Their speculative nature and lack of inherent utility may make them prime targets for tighter regulations. To adapt, memecoins could innovate by incorporating features like audited tokenomics or fostering on-chain transparency to align with evolving standards. These pressures could drive memecoins towards decentralized frameworks, reducing reliance on centralized exchanges.
Can ZKPs and interoperability future-proof Memecoins?
Technological advancements like zero-knowledge proofs (ZKPs) and cross-chain interoperability present unique opportunities for memecoins to innovate. ZKPs, which enable verifiable transactions without revealing underlying data, could enhance transparency and privacy simultaneously. For memecoins, this means mitigating risks associated with fraud or whale dominance while appealing to a broader range of users.
Projects such as Polygon and zkSync have already integrated ZKP technology, paving the way for its wider adoption across crypto sectors.
Similarly, cross-chain interoperability could address liquidity fragmentation in memecoins by enabling seamless transactions across multiple blockchain ecosystems. With over $200 billion in TVL across DeFi platforms, interoperable solutions like Polkadot and Cosmos could allow memecoins to tap into diverse liquidity pools, reducing volatility and improving accessibility.
These innovations, however, must align with the community-driven ethos that defines the meme economy.
Can memecoins mature into a meaningful crypto segment?
The memecoin phenomenon has thrived on speculation, but it is now clashing with the crypto industry’s shift towards utility and fundamentals. According to Kris,
“While memecoins drew speculative investors, they also pushed the industry to focus on projects with stronger foundations.”
Hyperliquid is a good example, he told AMBCrypto. Especially since it launched its mainnet a year before its token, building credibility and gathering data before its release.
This trend challenges memecoins to evolve beyond viral appeal and deliver tangible value. Top memecoins like Dogecoin and Shiba Inu enjoy strong community backing, but lack some utility, leaving them vulnerable to market shifts.
On the contrary, tokens with clear use cases, such as in DeFi or gaming, outperformed speculative assets by over 40% in average market cap growth last year.
For memecoins to mature, they must find innovative ways to align with this industry shift. Enhancing transparency through decentralized platforms and incorporating features like audited tokenomics could bolster investor trust. If memecoins can bridge the gap between culture and utility, they may yet carve out a meaningful niche in the crypto ecosystem.