- The meme coin sector has declined over 50% since President Trump's inauguration.
- Trump's tariff threats and the recent launch of PolitiFi meme coins have triggered heavy losses in the crypto market.
- Bitwise's Matt Hougan suggests recent events surrounding meme tokens could end the craze.
The meme sector is down on Wednesday, with top meme tokens declining alongside the broader crypto market following President Donald Trump's tariff threats. The decline in meme coins suggests investors are losing interest in the sector as sentiments turn bearish on President Trump.
Meme coin demand drops as investors turn bearish toward Trump tariffs
Meme coins experienced heavy losses in February as their demand fell to pre-election levels.
The meme sector has plunged by 50% since President Donald Trump's inauguration on January 20.
The crash reflects a broader dip among several meme categories. For example, the Dog-themed meme sector — with tokens such as Dogecoin (DOGE), Shiba Inu (SHIB) and WIF — has declined by 55.5% since the inauguration.
Likewise, the Solana meme category, which includes tokens like TRUMP and BONK, fell by 66.2% within the same period.
The PolitFi token category, which comprises tokens such as MELANIA and MAGA, also dived by 72%.
The huge losses in the meme coin sector largely stem from Trump's tariff threats on international trading partners, including the European Union, China, Canada and Mexico and recent pump-and-dump schemes from token launches.
The tariff sparked concerns of a global trade war, dampening investors' sentiment concerning crypto assets, especially the highly volatile meme sector.
Additionally, the collapse of the LIBRA token — connected to Argentine President Javier Milei — exacerbated losses across the sector.
Bitwise's Chief Investment Officer Matt Hougan stated in a Tuesday's post that the failure of LIBRA, along with President Trump's related TRUMP and MELANIA tokens, will end the meme craze.
Hougan predicts this end will occur within the next six months, with new trends such as fund tokenization and institutional adoption of Bitcoin as its replacements.
Furthermore, Trump's connection to the meme market also played a key factor in its recent downturn.
The crypto mark saw a major rally after Trump's presidential election victory as market participants anticipated favorable crypto policies under his administration.
However, his association with meme coins such as TRUMP and MELANIA, which have led to substantial losses for investors, has eroded market participants' confidence.
As a result, the recent market crash erased post-election meme coin gains for several investors.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC remains calm before a storm
Bitcoin price has been consolidating between $85,000 and $88,000 this week, approaching the lower boundary of the consolidation range when writing on Friday. A K33 Research report explains how the markets are relatively calm and shaping up for volatility as investors absorb the tariff announcements.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
Ethereum Price Forecast: Whales increase buying pressure as developers set April 30 for Pectra mainnet upgrade
Ethereum developers tentatively scheduled the Pectra mainnet upgrade for April 30 in the latest ACDC call. Whales have stepped up their buying pressure in hopes of a price uptick upon Pectra going live on mainnet.
BTC stabilizes while ETH and XRP show weakness
Bitcoin price stabilizes at around $87,000 on Friday, as its RSI indicates indecisiveness among traders. However, Ethereum and Ripple show signs of weakness as they face resistance around their key levels and face a pullback this week.
Bitcoin: BTC remains calm before a storm
Bitcoin (BTC) price has been consolidating between $85,000 and $88,000 this week, approaching the lower boundary of the consolidation range when writing on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.