Emre Yumlu 
The recent wave of selling pressure across the crypto market has hit memecoins particularly hard. Over the past 30 days, the total memecoin market capitalization has declined by roughly 34%, falling to approximately $31.02 billion. Despite the sharp downturn, onchain analytics and sentiment platform Santiment suggests the pullback may not be as terminal as many traders assume.
The “Memecoin Trend is Dead” Narrative
According to Santiment’s latest assessment, a strong sense of nostalgia and resignation has taken hold among market participants. A growing number of traders appear to be writing off the memecoin sector entirely, treating it as a relic of a previous cycle.
Historically, such broad-based pessimism can serve as a classic capitulation signal. In financial markets, when a specific segment is widely declared “dead,” it often signals peak negative sentiment — a condition that contrarian investors closely monitor. Santiment argues that sectors abandoned by the crowd frequently approach maximum pain levels, which have often coincided with market bottoms in past cycles.
Market Context Behind the Decline of Memecoin Trend
The weakness in memecoins has unfolded alongside a broader crypto market correction. On Feb. 3, Bitcoin fell to the $60,000 level — its lowest price since October 2024 — intensifying pressure across higher-risk digital assets.
Within the top 100 cryptocurrencies over the past seven days, most memecoins posted only modest gains. Pippin (PIPPIN) stood out dramatically with a 243.17% surge, while Official Trump gained 1.37% and Shiba Inu rose 1.11%. Outside of these exceptions, overall performance remained subdued, reinforcing the cautious tone in the sector.
A Changing Altcoin Landscape
In previous cycles, capital typically rotated from Bitcoin to Ethereum and eventually into higher-risk altcoins once Bitcoin established new highs. However, Bitcoin’s maturation and increasing institutional involvement have led some analysts to question whether this familiar rotation pattern will unfold in the same way.
There is growing speculation that the next altcoin season, if it materializes, may not resemble the broad-based rallies of the past. Instead of a “rising tide lifts all boats” environment, gains could become more selective and concentrated.
Fear as a Potential Reversal Signal
Santiment also highlights a noticeable surge in bearish commentary across social media. Historically, extreme pessimism has often preceded market recoveries, as markets tend to move against prevailing consensus expectations.
While the memecoin sector currently appears fragile, sentiment data suggests that conditions associated with potential reversals may be forming. Whether this translates into a sustained recovery or merely a limited rebound remains dependent on broader market dynamics.
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