As the prices of PEPE, SHIB and other tokens skyrocket, the Memecoin market’s total valuation has broken through the $50 billion mark, once again sparking market discussions about speculative fervor.
After a year of sustained decline, the key metric measuring Memecoin’s share in the altcoin market—“Memecoin dominance”—has rebounded strongly from historic lows. Memecoin’s total market capitalization has returned to the $50 billion level, with tokens like PEPE, BONK, and FLOKI recording double-digit gains at the start of the year.
This surge has forced both institutional fund managers and retail traders to confront a critical question: Is this merely a temporary burst of post-holiday speculative sentiment, or an early signal of a comprehensive market style shift?
Data from market intelligence firm CryptoQuant highlights the severity of this transformation. After Memecoin “mania” peaked in November 2024, the sector’s dominance in the altcoin market entered a prolonged downtrend.
Memecoin Market Dominance, Data source: CryptoQuant
At its peak, Memecoins accounted for 11% of the total altcoin market capitalization, with dominance reaching 0.11. By December 2025, this figure had plummeted to just 0.032, touching historic lows.
However, analysts point out that the last time this indicator touched such lows, it was subsequently followed by a massive influx of speculative liquidity, ultimately driving the entire altcoin sector higher.
Now, speculative investors are viewing the current bottom bounce as a potential leading indicator.
If this trend continues, it signals that market risk appetite is recovering at a faster-than-expected pace, potentially heralding a new altcoin bull market and profoundly impacting blockchain activity and token listing standards throughout 2026.
Key Signals Amid the Clamor
Data from analytics platform Santiment shows that in the first week of the year, the overall market value of Memecoins surged over 20.8%, with the sector’s total value breaking through $45.3 billion.
Cryptocurrency price tracking site CoinGecko provided an even higher valuation, estimating that the “Memecoin economy”—encompassing dog-themed, frog-themed, and political satire coins—has reached approximately $51.6 billion in total scale.
Leading this rebound are the veteran coins that dominated previous bull markets. Over the past seven days, both PEPE and the self-deprecatingly named USELESS coin surged 54%; MOG coin rose 38%; while BONK on the Solana chain also recorded a 34% gain. Even legacy assets like Dogecoin and Shiba Inu refused to fall behind, with trading momentum resuming on Sunday, Shiba Inu recording a 13% single-day gain.
Santiment analysts attributed the timing of this rebound to a classic contrarian investment signal. This surge began shortly after Christmas, precisely when retail traders’ FUD toward speculative assets peaked.
Memecoins Lead Cryptocurrency Market Rebound, Data source: Santiment
When market sentiment plunged into the depths and ordinary traders turned bearish and exited, savvy capital instead stepped in against the trend, seizing the opportunity of panic-driven selling to accumulate positions at low prices.
For fund managers who in 2025 shifted asset allocations toward “quality coins,” the resurgence of the Memecoin sector puts them in a bind.
This market move tests the industry’s willingness to embrace leveraged trading again: ignoring this rebound risks missing the early stage of a risk appetite cycle’s kick-off; while following the rally means having to venture anew into crypto’s most volatile asset territory.
The ETF Multiplier Effect
Unlike previous Memecoin bull markets driven almost entirely by overseas and decentralized exchanges, the 2026 rebound carries elements of compliance and legitimacy.
The approval and listing of multiple complex cryptocurrency ETFs in the United States have opened new transmission channels for speculative fervor, enabling it to penetrate traditional brokerage accounts.
Bloomberg Intelligence ETF analyst Eric Balchunas points out that some of the best-performing funds at the start of the year are leveraged Memecoin ETFs.
Notably, 21Shares’ 2x Long Dogecoin ETF (TXXD) has shown exceptional performance, indicating that market demand for Memecoin investment no longer remains confined to crypto-native enthusiasts using on-chain wallets.
21Shares Dogecoin ETF Leads Market Rally, Data source: Eric Balchunas
The “institutionalization” of the “Memecoin economy” has fundamentally altered its influence over the entire crypto market. When tens of billions of dollars flow into Memecoin-related assets, the ripple effects will propagate outward.
This affects major centralized exchanges’ listing decisions, as these platforms rely on trading fees from high-volume tokens to subsidize other operations; it also forces asset managers to expand their product pipelines.
Once this $50 billion asset class begins to dominate market cycle rhythms, the entire cryptocurrency industry’s infrastructure will be forced to adapt to the liquidity demands of what were once considered “fleeting joke coins.”
Meanwhile, the internal landscape of the Memecoin sector is also continuously differentiating. CoinGecko’s data divides the $51.6 billion Memecoin market into multiple subsectors, presenting a complex hierarchical structure.
“Boys Club” and “frog-themed coins” currently occupy 10.9% and 10.7% of the Memecoin market respectively, challenging long-dominant “dog-themed coins” (approximately 6.1% market share).
Memecoin Subsector Share, Data source: CoinGecko
Emerging categories like “political finance coins” and “AI Memecoins” have also captured several billion dollars in market scale, a trend indicating that the Memecoin sector is forming its own internal rotation patterns.
Public Chain Ecosystem Battle Renewed
The resurgence of Memecoins simultaneously serves as a stress test and growth engine for underlying blockchain networks, with Solana and Coinbase’s Base layer-2 network standing out particularly.
Within the Solana ecosystem, Memecoin Launchpad activity has climbed to its highest point in three months. Daily trading volume, the number of newly issued tokens, and “daily token graduation”—coins with sufficient momentum that successfully migrate from launch platforms to decentralized exchanges—have all surged dramatically.
Solana Memecoin Launchpad Trading Volume, Data source: Blockworks Research
This active landscape has reignited discussions about “fee wars”—different public chains competing to become the preferred venue for high-frequency speculative trading.
Last year, platforms like Pump.fun and LetsBonk generated massive revenue for the Solana network; early 2026 data shows this trend accelerating anew.
This market dynamic has also sparked discussions among industry leaders, who believe the significance of the Memecoin phenomenon extends far beyond speculative gambling.
Base network’s lead developer Jesse Pollak stated that such assets have practical functions within the crypto economy. He defines Memecoins as “collaboration anchors for communities,” capable of rallying people and providing venues for collective creative activities.
“We need more Memecoins because we need more creativity, community vitality, and collective action,” Pollak stated, viewing Memecoins as a traffic acquisition mechanism that attracts users who ultimately migrate to other on-chain applications.
For blockchain networks themselves, this Memecoin craze has tangible impacts: sustained price increases drive demand for native chain tokens, test network throughput, and attract more liquidity providers.
The Centralization Paradox
Although Memecoin narratives have consistently centered on “community governance” and “decentralized humor,” existing data reveals a major risk concerning holding concentration.
On the surface, this rally appears as a broad-based surge, but ownership of top coins is highly concentrated.
Santiment data shows that Shiba Inu, one of the standouts in the Memecoin realm, has 10 wallets controlling nearly 63% of total supply. Among them, the single largest wallet holds approximately 41% of supply, currently worth about $3.3 billion.
This highly concentrated holding structure is not unique to Shiba Inu, with tokens in multiple hot segments like “Solana Memecoin” and “frog-themed coins” exhibiting similar distribution characteristics.
This buries massive hidden dangers for late-entry retail investors: with liquidity concentrated in a small number of “whale” wallets, the market faces constant risks of price crashes.
CryptoQuant analysts warn that while the current market landscape resembles pre-bull signals from earlier cycles, “it’s premature to assert whether the trend can persist.”
For speculative investors, the current moment represents typical high-risk, high-reward timing. The rebound of Memecoin dominance from historic lows signals market awakening, yet the highly concentrated holding structure and leverage-driven nature of the rally still leave the entire sector’s foundation on shaky ground.
ミームコインが率先して反発、強気市場の前奏曲か、それとも大型クジラが仕掛けた罠か？
By: Oluwapelumi Adejumo
Compiled by: Chopper, Foresight News
As the prices of PEPE, SHIB and other tokens skyrocket, the Memecoin market’s total valuation has broken through the $50 billion mark, once again sparking market discussions about speculative fervor.
After a year of sustained decline, the key metric measuring Memecoin’s share in the altcoin market—“Memecoin dominance”—has rebounded strongly from historic lows. Memecoin’s total market capitalization has returned to the $50 billion level, with tokens like PEPE, BONK, and FLOKI recording double-digit gains at the start of the year.
This surge has forced both institutional fund managers and retail traders to confront a critical question: Is this merely a temporary burst of post-holiday speculative sentiment, or an early signal of a comprehensive market style shift?
Data from market intelligence firm CryptoQuant highlights the severity of this transformation. After Memecoin “mania” peaked in November 2024, the sector’s dominance in the altcoin market entered a prolonged downtrend.
Memecoin Market Dominance, Data source: CryptoQuant
At its peak, Memecoins accounted for 11% of the total altcoin market capitalization, with dominance reaching 0.11. By December 2025, this figure had plummeted to just 0.032, touching historic lows.
However, analysts point out that the last time this indicator touched such lows, it was subsequently followed by a massive influx of speculative liquidity, ultimately driving the entire altcoin sector higher.
Now, speculative investors are viewing the current bottom bounce as a potential leading indicator.
If this trend continues, it signals that market risk appetite is recovering at a faster-than-expected pace, potentially heralding a new altcoin bull market and profoundly impacting blockchain activity and token listing standards throughout 2026.
Key Signals Amid the Clamor
Data from analytics platform Santiment shows that in the first week of the year, the overall market value of Memecoins surged over 20.8%, with the sector’s total value breaking through $45.3 billion.
Cryptocurrency price tracking site CoinGecko provided an even higher valuation, estimating that the “Memecoin economy”—encompassing dog-themed, frog-themed, and political satire coins—has reached approximately $51.6 billion in total scale.
Leading this rebound are the veteran coins that dominated previous bull markets. Over the past seven days, both PEPE and the self-deprecatingly named USELESS coin surged 54%; MOG coin rose 38%; while BONK on the Solana chain also recorded a 34% gain. Even legacy assets like Dogecoin and Shiba Inu refused to fall behind, with trading momentum resuming on Sunday, Shiba Inu recording a 13% single-day gain.
Santiment analysts attributed the timing of this rebound to a classic contrarian investment signal. This surge began shortly after Christmas, precisely when retail traders’ FUD toward speculative assets peaked.
Memecoins Lead Cryptocurrency Market Rebound, Data source: Santiment
When market sentiment plunged into the depths and ordinary traders turned bearish and exited, savvy capital instead stepped in against the trend, seizing the opportunity of panic-driven selling to accumulate positions at low prices.
For fund managers who in 2025 shifted asset allocations toward “quality coins,” the resurgence of the Memecoin sector puts them in a bind.
This market move tests the industry’s willingness to embrace leveraged trading again: ignoring this rebound risks missing the early stage of a risk appetite cycle’s kick-off; while following the rally means having to venture anew into crypto’s most volatile asset territory.
The ETF Multiplier Effect
Unlike previous Memecoin bull markets driven almost entirely by overseas and decentralized exchanges, the 2026 rebound carries elements of compliance and legitimacy.
The approval and listing of multiple complex cryptocurrency ETFs in the United States have opened new transmission channels for speculative fervor, enabling it to penetrate traditional brokerage accounts.
Bloomberg Intelligence ETF analyst Eric Balchunas points out that some of the best-performing funds at the start of the year are leveraged Memecoin ETFs.
Notably, 21Shares’ 2x Long Dogecoin ETF (TXXD) has shown exceptional performance, indicating that market demand for Memecoin investment no longer remains confined to crypto-native enthusiasts using on-chain wallets.
21Shares Dogecoin ETF Leads Market Rally, Data source: Eric Balchunas
The “institutionalization” of the “Memecoin economy” has fundamentally altered its influence over the entire crypto market. When tens of billions of dollars flow into Memecoin-related assets, the ripple effects will propagate outward.
This affects major centralized exchanges’ listing decisions, as these platforms rely on trading fees from high-volume tokens to subsidize other operations; it also forces asset managers to expand their product pipelines.
Once this $50 billion asset class begins to dominate market cycle rhythms, the entire cryptocurrency industry’s infrastructure will be forced to adapt to the liquidity demands of what were once considered “fleeting joke coins.”
Meanwhile, the internal landscape of the Memecoin sector is also continuously differentiating. CoinGecko’s data divides the $51.6 billion Memecoin market into multiple subsectors, presenting a complex hierarchical structure.
“Boys Club” and “frog-themed coins” currently occupy 10.9% and 10.7% of the Memecoin market respectively, challenging long-dominant “dog-themed coins” (approximately 6.1% market share).
Memecoin Subsector Share, Data source: CoinGecko
Emerging categories like “political finance coins” and “AI Memecoins” have also captured several billion dollars in market scale, a trend indicating that the Memecoin sector is forming its own internal rotation patterns.
Public Chain Ecosystem Battle Renewed
The resurgence of Memecoins simultaneously serves as a stress test and growth engine for underlying blockchain networks, with Solana and Coinbase’s Base layer-2 network standing out particularly.
Within the Solana ecosystem, Memecoin Launchpad activity has climbed to its highest point in three months. Daily trading volume, the number of newly issued tokens, and “daily token graduation”—coins with sufficient momentum that successfully migrate from launch platforms to decentralized exchanges—have all surged dramatically.
Solana Memecoin Launchpad Trading Volume, Data source: Blockworks Research
This active landscape has reignited discussions about “fee wars”—different public chains competing to become the preferred venue for high-frequency speculative trading.
Last year, platforms like Pump.fun and LetsBonk generated massive revenue for the Solana network; early 2026 data shows this trend accelerating anew.
This market dynamic has also sparked discussions among industry leaders, who believe the significance of the Memecoin phenomenon extends far beyond speculative gambling.
Base network’s lead developer Jesse Pollak stated that such assets have practical functions within the crypto economy. He defines Memecoins as “collaboration anchors for communities,” capable of rallying people and providing venues for collective creative activities.
“We need more Memecoins because we need more creativity, community vitality, and collective action,” Pollak stated, viewing Memecoins as a traffic acquisition mechanism that attracts users who ultimately migrate to other on-chain applications.
For blockchain networks themselves, this Memecoin craze has tangible impacts: sustained price increases drive demand for native chain tokens, test network throughput, and attract more liquidity providers.
The Centralization Paradox
Although Memecoin narratives have consistently centered on “community governance” and “decentralized humor,” existing data reveals a major risk concerning holding concentration.
On the surface, this rally appears as a broad-based surge, but ownership of top coins is highly concentrated.
Santiment data shows that Shiba Inu, one of the standouts in the Memecoin realm, has 10 wallets controlling nearly 63% of total supply. Among them, the single largest wallet holds approximately 41% of supply, currently worth about $3.3 billion.
This highly concentrated holding structure is not unique to Shiba Inu, with tokens in multiple hot segments like “Solana Memecoin” and “frog-themed coins” exhibiting similar distribution characteristics.
This buries massive hidden dangers for late-entry retail investors: with liquidity concentrated in a small number of “whale” wallets, the market faces constant risks of price crashes.
CryptoQuant analysts warn that while the current market landscape resembles pre-bull signals from earlier cycles, “it’s premature to assert whether the trend can persist.”
For speculative investors, the current moment represents typical high-risk, high-reward timing. The rebound of Memecoin dominance from historic lows signals market awakening, yet the highly concentrated holding structure and leverage-driven nature of the rally still leave the entire sector’s foundation on shaky ground.