Investor enthusiasm for meme coins and artificial intelligence (AI) tokens has not translated into strong performance in 2025. A recent report from CoinGecko highlights that these popular narratives have faced significant declines amid a cautious market environment. As the year progresses, many investors appear to be re-evaluating their strategies, particularly in light of a turbulent fourth quarter.
The findings reveal that meme coins and AI tokens have recorded average year-to-date losses of -31.6% and -50.2%, respectively. Most of the largest meme coins saw declines ranging from 44.6% to 82.5%. Notably, Ribbita by Virtuals emerged as an exception among the meme coins, while only Alchemist AI and Kite managed to avoid steep losses, with other tokens in the sector experiencing declines between 49.8% and 84.3%.
The report also indicates that other popular crypto narratives have struggled, reflecting the unevenness of the market in 2025. The decentralized finance (DeFi) sector posted average losses of -34.8%, closely aligning with the performance of meme coins. Similarly, decentralized exchange tokens declined by 55.5%, mirroring the downturn experienced by AI tokens.
Layer 2 solutions, which have historically played a crucial role in scaling networks like Ethereum, continued to underperform for a second consecutive year, showing average losses of -40.6% year-to-date. In contrast, real-world assets (RWA) have emerged as the standout narrative of the year, delivering exceptional gains. This cohort achieved an average return of 185.8% across its largest tokens, driven primarily by the remarkable performance of Keeta Network, which experienced a staggering rally of 1,794.9%.
The success of RWA was further bolstered by strong gains from Zebec Network and Maple Finance, along with notable performances from privacy-focused chains such as Zcash and Monero. Additionally, traditional cryptocurrencies like Bitcoin Cash, BNB, and Tron showcased resilience during this challenging period.
Looking ahead, RWA and layer 1 assets have been the only narratives to achieve profitability for a second consecutive year. The “Made in USA” narrative remained modestly positive, with a year-to-date gain of 30.6%, largely attributed to Zcash offsetting losses in other areas. On the other hand, the gaming sector and decentralized physical infrastructure networks (DePIN) faced the steepest declines, reporting losses of 75.2% and 76.7%, respectively. The Solana ecosystem also struggled, with a year-to-date decline of 64.2%, despite maintaining significant mindshare.
The data suggests a pivotal shift in the cryptocurrency landscape, where speculative assets such as meme coins and AI tokens are losing their luster. As investor sentiment evolves, market participants may increasingly seek more stable and productive investments, particularly in light of the volatility witnessed throughout 2025.
