Meme Coins Lose Spotlight in Crypto Market as Bitcoin and Ethereum Dominate, Analysis Reveals (2025 Update)
- Why Are Meme Coins Losing Their Crypto Dominance?
- Recent Performance: Only One Winner in Top 10 Meme Coins
- The Four-Phase Crypto Cycle: Where Meme Coins Fit In
- What This Means for Crypto Investors
- Meme Coins Market: Frequently Asked Questions
The crypto market's class clowns are getting upstaged by the honor students. Meme coins - those volatile, joke-inspired tokens that once captured traders' imaginations - are now struggling to keep pace with more established cryptocurrencies like bitcoin and Ethereum. Fresh data shows their market dominance hitting levels not seen since early 2024, even as their total valuation surged nearly 80% to over $71 billion. But here's the kicker: while meme coins grew, ETH skyrocketed 150% and BTC posted solid 50% gains, with both hitting new all-time highs. This shift suggests crypto investors might finally be growing up - or at least getting more risk-averse. Still, some analysts believe meme coins could have another viral moment when market conditions change.
Why Are Meme Coins Losing Their Crypto Dominance?
Let's break down the numbers that tell this sobering story. According to CryptoQuant's latest analysis, meme coins' share of the altcoin market has dwindled to just 0.039 - a level we haven't witnessed since February 2024. Picture this: while the meme coin sector ballooned from $39.93 billion in April to over $71 billion today (an impressive 80% jump), ethereum left it in the dust with a 150% rally. Even Bitcoin, typically the tortoise in this race, outpaced meme coins with a 50% climb.
Source: CryptoQuant
What's really happening? Money appears to be flowing toward "safer" crypto bets. Bitcoin's new all-time high this week created major FOMO (fear of missing out), while Ethereum's surge benefited some ETH-based meme coins at the expense of others. But make no mistake - the meme sector as a whole is getting squeezed. As one trader on X (formerly Twitter) put it: "When the big boys start moving, the meme magic tends to fade... for now."
Recent Performance: Only One Winner in Top 10 Meme Coins
The short-term picture looks even grimmer for meme coin enthusiasts. CoinGecko data reveals that among the top 10 meme coins by market cap, only Pump.fun (PUMP) managed to stay in the green this past week. On the flip side, SPX6900 (SPX) took a brutal 18% nosedive. This kind of lopsided performance hasn't been seen since the last crypto winter.
Source: CoinGecko
Interestingly, this downturn comes despite meme coins' total market cap growth. It's like watching a sinking ship that somehow keeps getting bigger - the value is there, but the momentum isn't. Some ETH-based meme coins caught a ride on Ethereum's coattails, but most are struggling to stay relevant as investors flock to more established projects.
The Four-Phase Crypto Cycle: Where Meme Coins Fit In
Popular trader @0xNonceSense recently outlined what he calls the "four phases of altseason" on X. According to his framework (which many in crypto circles are discussing), we're currently in Phase 2 - Ethereum's time to shine. Here's how it breaks down:
- Phase 1: Bitcoin dominance rises
- Phase 2: Ethereum leads the charge
- Phase 3: Small/mid-cap altcoins explode
- Phase 4: The meme coin frenzy (true "altseason")
If history rhymes (as it often does in crypto), meme coins might get their day again during Phase 4 - when market euphoria peaks and investors start chasing the craziest returns. But we're not there yet, and the path depends heavily on macroeconomic factors and overall crypto market liquidity.
What This Means for Crypto Investors
While meme coins aren't dead (their $71 billion market cap proves that), the current market clearly favors more established cryptocurrencies. Bitcoin's stability and Ethereum's technological advantages are attracting serious money that might have chased meme coins in previous cycles.
That said, crypto moves in cycles, and meme coins could come roaring back when market sentiment shifts. As one BTCC analyst noted, "Meme coins are the canaries in crypto's coal mine - when they start flying again, you'll know risk appetite has returned."
This article does not constitute investment advice.
Meme Coins Market: Frequently Asked Questions
How much have meme coins grown in 2025?
Meme coins' total market cap grew about 80% from $39.93 billion in April 2025 to over $71 billion currently, according to CryptoQuant data.
Which cryptocurrency outperformed meme coins recently?
Ethereum (ETH) significantly outperformed meme coins with over 150% growth in the same period, while Bitcoin (BTC) posted about 50% gains.
Are all meme coins performing poorly?
Not all - Pump.fun (PUMP) was the only top 10 meme coin in the green last week, while others like SPX6900 (SPX) dropped over 18% according to CoinGecko.
Could meme coins make a comeback?
Some analysts believe meme coins could resurge during the later "altseason" phase of the crypto market cycle, though timing depends on macroeconomic conditions.
