#TrumpVsMusk #BigTechStablecoin
The capitalization of memecoins is regaining ground.🦊🐶🐸🐾🐾🐾
This 2025 has not been a positive year for memecoins at all. The preference for consistent assets like Bitcoin and native tokens of blockchains has left speculative coins behind. This is particularly evident in the meme coin sector, which is suffering a strong abandonment of capital.
Economic conditions do not favor risk-taking at all, and this goes far beyond the crypto market. Donald Trump's trade war becomes the main factor forcing capital to exit risk assets and seek refuge in defensive assets like gold.
In this context, memecoins become the most disposable option due to their low capitalization, which generates strong volatility.
According to the Market Vector meme coin index, the sector experiences a performance of -46.65% so far this year. This serves to illustrate the poor moment of dog, cat, frog, and politician tokens.
It is expected that by the end of the year, a favorable situation for risk will arise. This would stem from the stabilization of trade issues. If the U.S. reaches consistent agreements with China and the EU, and the rest of the emerging economies, the markets will breathe easier. Likewise, the Federal Reserve could resume interest rate cuts.
As one might expect, this situation will lead capital to come out of hiding and return to riskier assets. Under those circumstances, the memecoin market would likely return to a new edition of the 2024 frenzy.
