Memecoins like Shiba Inu, Dogecoin, and PEPE have faced a tough reality in 2025, leaving many crypto enthusiasts wondering if they are on their last legs or poised for a remarkable comeback. Let’s take a closer look at these meme-based digital currencies and their rollercoaster market performance this year.
The Harsh Decline of Memecoins in 2025
2025 has not been kind to memecoins. Dogecoin ($DOGE) has seen a steep decline, losing approximately 65% of its value from its 2024 peak, now trading near $0.13. Similarly, Shiba Inu ($SHIB) has faced a devastating 70% drop, with no clear sign of relief. Meanwhile, PEPE ($PEPE) has performed the worst, collapsing by over 80% from its hype-driven highs.
The price action for these coins adheres to a sobering pattern of lower highs, weak upward bounces, and declining trading volumes—indicating a phase of distribution rather than accumulation. Understandably, such trends have sparked heated debates on whether these tokens have a future.
Bitcoin’s Outperformance: A Stark Contrast
While memecoins bled profusely, Bitcoin ($BTC) fared much better. Despite losing around 25% in 2025, the flagship cryptocurrency avoided a catastrophic downtrend. Bitcoin consolidated its value within a steady range between $89,000 and $120,000, suggesting strong institutional support and steady dip buying. This stark contrast highlights a significant divergence between the perceived risk levels of Bitcoin and memecoins.
Why Memecoins Always Seem to ‘Die’ Mid-Cycle
The current state of memecoins isn’t entirely unprecedented—they follow a repetitive cycle of underperformance during periods of market uncertainty and risk-off sentiment. Historically, memecoins lag behind the larger market recovery led by Bitcoin, Ethereum, and other large-cap cryptocurrencies.
However, history also reminds us of one critical fact: memecoins often make their biggest comebacks when the market least expects it. During true bull runs, they catapult to the forefront, attracting massive retail investments and outperforming Bitcoin by multiples.
Memecoins’ Explosive Potential During Bull Markets
Memecoins’ past rallies, such as Dogecoin and Shiba Inu’s explosive peaks in 2021, are prime examples of their potential. These rallies often begin when market interest and trading volumes are near their lowest. Traders and analysts speculate this downturn may be a precursor to a similar resurgence over the next market cycle.
If speculation holds true, those willing to take risks on these assets at their current lows might reap significant rewards during the next liquidity wave.
Should You Invest in Memecoins Now?
Although memecoins have shown incredible volatility in the past, their future largely depends on broader market cycles. If you’re considering investing, ensure your portfolio is diversified, with the majority allocated to stable projects like Bitcoin and Ethereum.
For memecoin believers, this lull could be an opportunity—but only those with a high risk tolerance should dive in. To stay informed, monitor the market trends and review technical signals regularly.
If you’re keen on keeping track of crypto investments and performance, consider using a product like the Trezor Model T Hardware Wallet. This secure wallet allows you to safely store and manage your cryptocurrency portfolio without fear of cyber threats or hacks.
