Emre Yumlu 
Memecoin projects, one of the most volatile segments of the cryptocurrency market, have started 2026 with an unexpected surge. After spending the final days of 2025 near yearly lows, the sector staged a sharp rebound in the first week of the new year, drawing renewed attention from traders and speculators.
Over the past week, the total market capitalization of memecoins increased by more than 23%, rising from approximately $38 billion to $47.7 billion. This sudden recovery suggests a noticeable shift in investor behavior, particularly after risk appetite weakened significantly toward the end of last year.
Trading Activity Surges Across the Sector
The rebound in prices has been accompanied by a dramatic increase in transaction volume. Daily memecoin trading volume jumped from around $2.17 billion on December 29 to $8.7 billion within days. This nearly 300% rise highlights not only speculative interest but also a return of active participation across the market.
Large-cap memecoins have been leading the move. Dogecoin recorded gains of over 20% in the past week, while Shiba Inu climbed close to 19.9%. Pepe stood out with a surge exceeding 65%, making it one of the strongest performers during the rebound.
A Reaction After a Difficult 2025
Throughout 2025, memecoins experienced a deep and prolonged correction. The sector lost more than 65% of its value over the year, eventually bottoming out at a market capitalization of roughly $35 billion on December 19 — its lowest point of the year. This decline largely reflected reduced risk-taking across the broader crypto market.
Against this backdrop, the recent rally is widely interpreted as a sign that investors may once again be willing to allocate capital to higher-risk assets.
Could Memecoin Strength Spill Into Altcoins?
Market observers note that the memecoin recovery began shortly after pessimism among retail traders reached extreme levels. Historically, such conditions have often preceded sharp reversals, as markets tend to move against dominant expectations.
Some traders believe this renewed strength could extend beyond memecoins. In previous cycles, periods of strong memecoin performance were often followed by broader altcoin rallies. Solana, in particular, is frequently cited as one of the ecosystems that has historically benefited most from meme-driven momentum.
Broader Crypto Market Remains More Cautious
Despite the explosive move in memecoins, the wider crypto market has advanced at a more measured pace. Total cryptocurrency market capitalization increased by just over 5%, rising from $2.97 trillion to $3.13 trillion.
Bitcoin gained roughly 5% over the same period, trading near $92,335, while Ether rose about 7.3% to around $3,168. Investor sentiment is also improving, with market indicators shifting back into neutral territory for the first time in months — a potential sign that confidence is gradually stabilizing.
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