The meme coin sector faced significant pressure this week, with prices, trading volumes, and overall sentiment declining sharply. A combination of law enforcement actions and fading political narratives accelerated a broader cooldown across the space.
Total meme coin market capitalization fell 7% week-over-week to $37.4 billion, while trading volume dropped nearly 10% to $4.6 billion. Performance was broadly negative, with only two of the top 20 meme coins managing to stay in positive territory during the week.
One of the most significant developments came from U.S. law enforcement, where Florida authorities seized $1.5 million in cryptocurrency, including DOGE and PEPE, tied to a scam operation involving a Chinese national. This action pushed meme coins further onto the regulatory radar and reinforced concerns around enforcement risk in highly speculative segments.
The timing amplified market anxiety, as meme coins linked to political narratives had already peaked near $150.6 billion in market capitalization in late 2024 before reversing sharply. The seizure added a tangible catalyst to what had already been a sentiment-driven unwind heading into 2025.
Despite the broader downturn, a handful of smaller tokens posted outsized gains. Yee Token (YEE) led weekly performers with a 60% jump, followed by Act 1: The AI Prophecy (ACT) up 47%, Nubcat (NUB) up 41%, Comedian (BAN) up 30%, and pippin (PIPPIN) gaining 28%. However, these moves appeared highly localized.
Larger, established meme assets told a different story. Dogecoin and Pepe both recorded weekly losses, while other major names across Ethereum, Solana, Sui, and Base ecosystems traded firmly lower, reinforcing the view that capital is rotating away from the sector rather than selectively accumulating it.
Activity metrics also point to slowing momentum. Pump.fun, while still dominant as a launchpad, saw token creation fall to 16,100 launches in 24 hours, down from 19,700 previously. Sector-specific performance remained weak, with Solana-based memes sliding, Ethereum's SHIB posting a double-digit weekly loss, and Sui and MemeFi names suffering some of the steepest declines.
Binance-related developments added to the regulatory backdrop, with the exchange announcing a $5 million whistleblower bounty targeting fake listing agents following earlier insider trading controversies.
The overall picture is one of retracement rather than rotation. Political hype that once fueled explosive growth has faded, regulatory scrutiny has intensified, and speculative excess is being worked off through lower prices and reduced participation. For now, the meme coin market appears to be in a reset phase, with volatility replacing momentum and isolated rallies failing to change the broader downward structure.
