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.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is There a Signal of “Capitulation” in The Memecoin Market? appeared first on Coin Engineer.

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.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is the Memecoin Rally Making a Comeback? appeared first on Coin Engineer.

Investors are negatively affected by this rapid decline in these coins. The market volatility and risk aversion trend have particularly increased liquidations among retail investors. Even well-established coins like Dogecoin and Shiba Inu couldn’t escape this crash. Thus, the meme coin collapse weakened market sentiment and shook investor confidence. 

Reasons Behind the Meme Coin Crash and Market Reactions 

The main reasons behind the meme coin crash are general market fluctuations and risk-averse behavior. Liquidations increased on exchanges as leveraged traders closed their positions. Coins with high retail interest, like the TRUMP token, lost value due to the deteriorating market sentiment. Additionally, some experts pointed to price manipulation allegations around the TRUMP token. 

On the other hand, price movements of major cryptocurrencies like Bitcoin and Ethereum also influence this market. Bitcoin’s upward momentum slowed down, while Ethereum experienced significant sell-offs. Although the altcoin market has generally been on the rise, short-term pullbacks are occurring. This situation has led investors to act more cautiously after the sharp decline in meme coins. 

In conclusion, the meme coin crash indicated high risk and volatility in the crypto market. Investors are closely watching Bitcoin and major altcoins for possible recovery signals. While selling pressure continues on viral coins, the overall market balance and investor perception remain critically important. 

***NOT INVESTMENT ADVICE*** 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Meme Coin Crash: TRUMP, Dogecoin, and Shiba Inu appeared first on Coin Engineer.

Brian Quinlivan, Marketing Director at Santiment, remarked in a May 1 analysis that the market mood is shifting toward a “gamble-first mentality”, as traders increasingly focus on risky assets instead of fundamentals. Dogecoin, in particular, has made headlines thanks to renewed buzz around ETF filings in the U.S.

Dogecoin Rides the ETF Wave

Following a significant dip in crowd interest throughout April, Dogecoin has staged a strong comeback fueled by speculation surrounding several DOGE-related ETF applications. Although the U.S. Securities and Exchange Commission has postponed decisions on these proposals until mid-June, sentiment is heating up.

Quinlivan noted that DOGE’s social visibility has climbed to its highest level in nearly three months, suggesting growing anticipation across investor communities.

Memecoin Volumes Explode: Pump.Fun and PumpSwap Take the Spotlight

The memecoin revival can be traced back to January, when former U.S. President Donald Trump launched his own token, sparking a wave of activity. This momentum pushed Pump.Fun’s weekly volume to $3.3 billion shortly after launch.

In April, Pump.Fun’s decentralized exchange, PumpSwap, recorded a dramatic rise in monthly trading volume — soaring to $11 billion, up from just $1.7 billion in March. This growth highlights an aggressive return of capital into high-risk, community-driven assets.

Bitcoin Stalls While Altcoin Risk Appetite Grows

Over the past eight days, the overall crypto market has risen by 10%, while Bitcoin has gained just 7%. According to Santiment, this signals that investors are rotating into more volatile altcoins, hoping for outsized returns.

“When Bitcoin leads a rally but then enters a sideways phase, traders tend to pivot into more speculative plays,” Quinlivan explained, capturing the sentiment of many retail investors in the current cycle.

Interest Returns, but Stability Remains Uncertain

While interest in memecoins is clearly rising, the market’s erratic nature leaves questions about how long this trend will last. Earlier in March, enthusiasm waned following a string of disappointing token launches. One of the most notable flops was the LIBRA token, which dented investor confidence significantly.

In summary, the memecoin space is seeing renewed traction, but the path forward remains uncertain. Traders would be wise to stay cautious as speculation heats up — because in a market driven by hype, the line between opportunity and risk is razor thin.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is the Memecoin Frenzy Making a Comeback? Traders Chase High-Risk appeared first on Coin Engineer.

Dogecoin Leads the Losses

Dogecoin, the largest memecoin by market capitalization, led the losses with a 5.6% drop in the past 24 hours, while SHIB recorded a 10.4% decrease. The Ethereum-based Pepe (PEPE) was the only top-cap memecoin to show gains, rising by 1.7%.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

In addition to price drops, the open interest (OI) in memecoins also saw a decline. For instance, Pnut (PNUT) led the retreat with a 30% drop in OI, followed by DOGE, which saw a 20% decrease in OI to $3.1 billion. Memecoin OI fell overall, indicating bearish sentiment as traders closed leveraged positions in anticipation of further price drops.

The broader crypto market experienced a massive drawdown, with over $1.7 billion in liquidations in just 24 hours. Memecoin positions saw significant liquidations, with DOGE longs contributing over $72.6 million to the total liquidations. Similarly, SHIB, PEPE, and WIF saw substantial long liquidations as well, with PEPE liquidations reaching $7.9 million and WIF at $3.6 million.

Biggest Liquidation Event Since 2021

This event marks the largest liquidation event since 2021, resembling the start of the 2022 bear market. A similar event occurred earlier in December when a flash crash wiped out over $816 million in long positions, including memecoin losses.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Dogecoin, WIF, and Other Memecoins Experience the Hardest Drop! appeared first on Coin Engineer.

According to Arkham Intelligence, Donald Trump currently holds around 579,290 TRUMP tokens, worth approximately $1 million. However, the MAGA Hat (MAGA) token, which is not directly affiliated with Trump, has also experienced a similar drop. According to CoinGecko data, MAGA token surged to $0.0002 following the election victory but has fallen 55% over the past 24 hours.

Other Trump-themed memecoins have also plummeted. Dark MAGA (DMAGA) dropped by 75%, Super Trump (STRUMP) by 50%, and MAGA: Fight for Trump (TRUMPCOIN) by 56%.

Donald Trump won the presidential election on November 6, surpassing the 270 electoral vote threshold with a total of 295 votes. Kamala Harris received 226 votes, with only 17 votes remaining to be counted in Nevada and Arizona.

Meanwhile, other memecoins saw gains. Dogecoin rose by 10% throughout the day, reaching $0.20, while Shiba Inu gained 6%, and the third largest memecoin by market cap increased by 18%. According to CoinGecko data, the rise of these memecoins continues.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Major Drop in Trump-Themed Coins! appeared first on Coin Engineer.

Musk’s loyalty to DOGE, which he has publicly stated is his favorite cryptocurrency, suggests that his ventures may remain focused on supporting DOGE rather than other digital assets like SHIB. Tesla doesn’t even accept Bitcoin (BTC), despite holding a significant amount of BTC, further indicating that SHIB may not be on its radar for payment options.

Might interest you: What is BabyDoge?

However, there is speculation that SHIB could be included in the upcoming payment feature on X (formerly Twitter), where cryptocurrencies might play a role. While many expect DOGE to be included, SHIB could potentially be added as well, though no official announcements have been made.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Will Elon Musk’s Tesla Accept Shiba? appeared first on Coin Engineer.

8.27 Trillion SHIB Tokens Moved

One particularly noteworthy result of this action was the movement of 8.27 trillion SHIB tokens by these whales. Whales typically amass or unload significant quantities of an asset before significant price swings take place; such big movements sometimes act as early signals of approaching market trends. This increase in whale activity could indicate for SHIB an approaching price recovery or market consolidation.

Potential Price Recovery?

As of press time, SHIB is trading at roughly $0.0000163 and continues above crucial support levels despite its retraction from a recent rise. Whale interest rises could be an early indication of optimistic momentum. Nonetheless, traders should use prudence and refrain from taking unneeded risks considering the regular price corrections following significant movements.

Whale activity keeps straying the market, and even if big investors are still active, SHIB’s price has been gradually falling. Given Shiba Inu’s volatility is still higher than usual, traders are advised to keep a close eye on events.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post SHIB Whale Activity Surges: 8.27T Tokens Moved appeared first on Coin Engineer.

Data compiled from BitEye, CoinGecko, and Wu Blockchain shows that memecoins have been the most profitable sector, with an astonishing 1,834% return since the beginning of 2024. In addition to popular memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB), lesser-known projects have also played a significant role in this surge.

The memecoin sector was followed by the RWA sector, which provided investors with a 214% return. RWA, which stands for the tokenization of traditional assets and their integration into blockchain-based infrastructures, is gaining prominence. Centrifuge and RealT are among the projects in this field.

AI-focused blockchain projects came in third with a 72% return. Projects like Fetch.ai and Ocean Protocol are using blockchain technology for the development of AI models and data sharing. Physical infrastructure networks (DePIN) followed with a 59% return. Helium (HNT), which aims to create a decentralized internet infrastructure, is the most popular project in this space.

Bitcoin (BTC) and Ethereum (ETH), the foundations of digital assets, continued to perform well. ETH has gained 50% since the beginning of the year, while Bitcoin has gained around 45%.

Layer-1 platforms provided an average return of 43%, while sectors like gaming and decentralized finance (DeFi) lagged behind in the competition, but still managed to achieve modest returns of 19% and 3%, respectively. However, the Layer-2 sector experienced a significant decline, with total losses averaging around 41%.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’ t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news

The post These Crypto Categories Are Already Making Their Mark in 2024! appeared first on Coin Engineer.

Institutional investments in memecoins have increased by more than 300% this year, reaching nearly $300 million in April. This increase shows the increasing interest of professional investors in the sector, Bybit stated in its report on Wednesday. Popular among institutional investors, dogecoin (DOGE) and shiba inu (SHIB) were preferred due to their liquidity, especially in the spot market. Investments only cover assets on Bybit and do not include assets on other exchanges.

Among the new meme coins that stood out this year, Solana meme token BONK became one of the most preferred among institutional investors and attracted more than $75 million in investments.

In May, institutional investors took profit and reduced their investments in meme coins by nearly half, to $125 million. During the same period, stablecoin investments fell from $1.7 billion to $1.4 billion, but exposure to bitcoin (BTC), ether (ETH), and meme coins increased.

As of May 1, DOGE had the largest meme coin holdings for both retail and institutional investors. Institutions allocated 36% more funds to DOGE compared to 24.5% of retail investors. This shows that both groups view DOGE as a fundamental asset in the meme coin space, but institutions favor it more due to its higher liquidity and relatively more stability. Both groups are interested in Ethereum-based meme coins (PEPE) and (SHIB), with retail users holding 20.95% and 14.61%, and institutions holding 22.23% and 10.39%, respectively.

In recent months, meme tokens from the Ethereum and Solana ecosystems have emerged as a way to invest in blockchain growth.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Institutional Memecoin Investments Have Increased Since January appeared first on Coin Engineer.