The cryptocurrency market entered 2026 with unexpected momentum, driven primarily by memecoins. Over the course of a single week, their total market capitalization increased by more than 23%, while trading volume surged nearly 300%. According to data from CoinMarketCap, the total value of the memecoin market climbed above $47.7 billion on Monday, compared to roughly $38 billion on December 29.

This marks a sharp reversal after a very weak 2025. Throughout last year, memecoins lost more than 65% of their value, with market capitalization dropping to around $35 billion by the end of December—the lowest level of the year. The decline was largely driven by investors retreating from risk assets and a broader cooling of speculative trading.

Dogecoin Shiba Inu and Pepe post strong gains

The rebound has also reached the largest players in the segment. The three biggest memecoins by market capitalization posted double-digit gains over the past week. Dogecoin rose by more than 20%, Shiba Inu gained 19.9%, and Pepe surged by over 65%.

Investor activity has increased even more sharply. Trading volume in memecoins jumped from $2.17 billion at the end of December to $8.7 billion within days—roughly a threefold increase. High trading volumes are often interpreted as a sign of renewed market interest and shifting sentiment.

Risk appetite returns

Memecoins are widely regarded as one of the riskiest segments of the crypto market. Their sudden rise may therefore signal that investors are once again willing to take on higher risk. Analysts at Santiment note that the rally followed a period of heightened fear, uncertainty, and doubt (FUD) among retail investors shortly after Christmas.

“Markets often move in the opposite direction of what the majority expects. Historically, it pays to watch assets that retail investors have written off,” Santiment analysts said.

Could an altcoin rally follow?

Optimism is gradually spreading to other parts of the crypto market. A trader known as Wealthhmanger on X suggests that the strength of memecoins could precede a broader altcoin rally.

“When we see this kind of strength in memecoins, other altcoins usually follow. Historically, Solana has benefited the most from memecoin-driven waves,” he said. The Solana Blockchain played a key role during previous memecoin booms.

The broader market lags behind

While memecoins are surging, the broader cryptocurrency market is advancing at a much slower pace. Total crypto market capitalization rose by around 5% over the past week, from $2.97 trillion to $3.13 trillion.

During the same period, the price of bitcoin increased by 5%, trading around $92,335 on Monday. Ether gained 7.3%, reaching approximately $3,168. Even so, the growth of major cryptocurrencies remains far more modest compared to memecoins.

Sentiment improves

Investor sentiment indicators also point to improving conditions. The Crypto Fear and Greed Index by CoinMarketCapentered neutral territory for the first time since October on Sunday, reaching a value of 40. This suggests a gradual easing of fear and a more balanced investor outlook.

For now, early 2026 belongs to memecoins. Whether this move proves to be a short-lived spike or the beginning of a deeper shift in market sentiment will become clearer in the weeks ahead.

Sources:

https://coinmarketcap.com/view/memes/

https://www.coingecko.com/en/categories/meme-token

https://x.com/santimentfeed/status/2007705054732583168

https://x.com/Wealthmanager/status/2007814524876034150