Meme coins plummet 65%! Dropping from a trillion-dollar peak to 350 billion, what is retail investors' risk appetite really indicating?

【Crypto Rhythm】As 2025 approaches the end of the year, the Meme coin sector is in a bit of an awkward position. From the crazy $100 billion high during Christmas 2024, it has fallen to $35 billion now, a decline of 65%. This was the lowest point on December 19, and although there was a slight rebound to around $36 billion afterward, the overall enthusiasm for the sector has clearly cooled down.

Trading activity is also following the trend downward. Throughout the year, Meme coin trading volume plummeted from its peak to $3.05 trillion, a decrease of 72%. What does this mean? Retail investors are quickly exiting, shifting their funds from these high-risk, highly speculative assets to other investments.

There is a saying in the industry: Meme coins are the “thermometer” of retail risk appetite. When Meme coins are hot, it indicates that retail investors are bold and willing to take risks; now that it’s so cold, it simply shows that the overall market has become more cautious, and everyone’s risk tolerance is decreasing.

Interestingly, the popularity of Meme coins in 2024 was closely related to the excitement surrounding the U.S. presidential election. Election-themed tokens flooded social media, on-chain activities, and major launch platforms, becoming the hottest speculative concept at the time. But fortunes change; after the political narrative hype faded, it instead became a weight dragging down market sentiment. This rise and fall also reflect how fragile assets driven purely by narrative can be.