Memecoin index plunges 90% as crypto markets retreat

The memecoin hype that defined crypto markets in 2024 has significantly cooled, with the GMCI Indices chart revealing a broad-based decline across multiple crypto sectors.

When benchmarked from Jan. 1, 2024, the GMCI Meme Index had generated a ~550% return to its peak in December 2024. However, a dramatic reversal has led the index to lose nearly all of its gains relative to Jan. 1, 2024, as it is up just ~67% from then to the time of writing.

This 90% drawdown means that the index has lost nearly all of its gains relative to Jan. 1, 2024.  The meme sector highlights the inherently volatile nature of these assets, which typically lack fundamental value drivers and rely heavily on social media momentum and community enthusiasm.

The decline isn't isolated to memecoins. The chart shows all GMCI indices trending downward since early 2025, though with varying severity. While the AI and GMCI30 indices have demonstrated more resilience with moderate pullbacks, the GMCI12 and DeFi indices have followed steeper downward trajectories.

This market-wide retreat coincides with broader macroeconomic uncertainty and escalating U.S. trade tensions, factors that have dampened risk appetite across financial markets. In such environments, speculative crypto assets typically experience the most pronounced corrections as investors seek safer positions.

The changing landscape is further evidenced by activity metrics on memecoin launchpads. Pump.fun, once a hotbed of speculative trading, has seen its daily revenue drop below $1 million, reflecting waning interest in new token launches. This marks a significant shift from the platform's heyday when it regularly generated multiple millions in daily fees.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.