Crypto Investors Shift to Productivity as Meme Coins, NFTs Plunge

Meme coins and NFTs have plummeted to yearly lows as traders increasingly abandon speculative assets amid a broader crypto market downturn. The total market capitalization of meme coins has dropped to $39.4 billion, a 66.2% decline from the January 5 historical high of $116.7 billion, according to data. Over the past 24 hours alone, $5 billion has evaporated from the sector, with top tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) recording double-digit losses. Even the relatively resilient TRUMP token has fallen by 11.65%, underscoring the sector's broad weakness.

The NFT market has fared no better, with its total value collapsing to $2.78 billion - 43% below its 30-day peak of $4.9 billion and the lowest level since April. Leading collections have experienced steep declines, including Hyperliquid's Hypurr NFTs, which dropped 41.1% in 30 days. Bored Ape Yacht Club's Moonbirds and CryptoPunks fell 32.7% and 27.1%, respectively, while Pudgy Penguins lost 26.6% of their value according to reports. Only two of the top 10 NFT collections, Infinex Patrons and Autoglyphs, posted gains, with the former rising 11.3% according to data.

The selloff reflects a broader shift in investor sentiment toward more "productive" crypto assets, as highlighted by MatchAwards.com's introduction of MAPU, a "proof-of-productivity" model emphasizing real-world utility over speculative hype. Analysts attribute the decline to waning interest in unbacked digital assets and a market correction following years of speculative fervor. The broader crypto market has lost $800 billion in three weeks, now valued at $2.96 trillion after peaking at $3.77 trillion on November 1.

The trend mirrors similar patterns in 2022, when meme coins and NFTs crashed amid rising interest rates and regulatory scrutiny. However, the current downturn occurs against a backdrop of structural shifts in crypto markets, with investors favoring projects offering verifiable liquidity, on-chain transparency, and sustainable revenue models.

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