Memecoins Go Quiet as $239B Floods Into Leveraged ETFs

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• Memecoin dominance has fallen to levels last seen in early 2024.
• Leveraged ETFs now hold a record $239 billion, drawing speculative capital.
• Smart money favors revenue-generating crypto over viral tokens.

Crypto markets are sending a clear signal: speculative energy is no longer flowing into memecoins. While traditional finance investors are piling into leveraged exchange-traded funds at record levels, risk appetite in crypto—especially for memecoins—has cooled to lows not seen since early 2024. The contrast highlights a broader shift in where investors are choosing to express risk.

Memecoin Dominance Slides to Two-Year Lows

Data from CryptoQuant shows memecoin dominance versus altcoins has dropped to a near two-year low, last seen in February 2024. The decline suggests retail enthusiasm has thinned, echoing comments from industry watchers who argue that the memecoin trade has largely stalled. Liquidity remains shallow, and without a fresh narrative or decisive price momentum, traders appear reluctant to re-enter.

TradFi Leverage Hits Record Highs

While crypto speculation fades, equities investors are doing the opposite. Leveraged ETFs in traditional markets reached a record $239 billion in assets under management in the third quarter of 2025, according to Bloomberg data shared by Barchart. The surge points to a preference for regulated, familiar products—vehicles that offer amplified exposure but with clearer rules and safeguards than many crypto assets.

Market analysts say this divergence reflects a maturing risk culture. Instead of chasing viral tokens with uncertain structures, investors are increasingly choosing instruments that sit within established financial frameworks.

Sentiment Still Shaken After October Crash

Crypto sentiment has yet to recover from the sharp market downturn in early October. CoinMarketCap’s Fear & Greed Index shows sentiment remains in “Fear,” well below pre-crash levels. The caution extends beyond memecoins to much of the market.

On-chain data supports the mood. “Smart money” traders tracked by Nansen are net short several major memecoins, while favoring assets tied to revenue-generating protocols such as Ether and select decentralized exchange tokens. The positioning suggests fatigue with rapid-fire memecoin launches and growing scrutiny of token distribution practices, including concerns around bundled supply and early insider selling.

Also Read: Binance’s Limited Freeze of Upbit Hack Funds Raises Global Coordination Questions

What Would Revive Memecoins?

A turnaround is possible—but not guaranteed. Analysts say a revival would likely require a strong catalyst, such as a viral cultural moment, major exchange listings, or sustained price action. Until then, speculative capital appears content to sit on Wall Street rather than on-chain.

The current split between crypto and equities speculation underscores a changing landscape. Memecoins, once the loudest expression of retail risk-taking, are losing ground to regulated leveraged products. For now, speculation hasn’t disappeared—it’s simply moved

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.