Memecoins started 2026 with renewed momentum as traders returned to the high-risk sector, pushing total memecoin market capitalization up more than 23% over the past week.
After hitting yearly lows in the final days of 2025, the memecoin market staged a sharp rebound. Data from CoinMarketCap shows total market capitalization climbing to $47.7 billion on Monday, up from roughly $38 billion on Dec. 29.
Leading memecoins recorded strong gains during the rally. Dogecoin rose more than 20% over the past seven days, while Shiba Inu gained nearly 20%. Pepe posted the strongest performance, surging more than 65% over the same period.
Trading activity increased alongside prices. Memecoin transaction volume jumped from $2.17 billion at the end of December to $8.7 billion by Monday, marking an increase of nearly 300%. The surge in volume mirrored the rapid expansion in overall market capitalization.
The rebound follows a steep decline throughout 2025, when memecoins lost more than 65% of their total value. The sector bottomed near $35 billion in market cap on Dec. 19, as traders reduced exposure to speculative assets. Because memecoins are among the riskiest segments of the crypto market, the recent rally may signal a renewed appetite for risk.
Analysts at market intelligence firm Santiment said the memecoin recovery began shortly after fear, uncertainty, and doubt peaked among retail traders in late December. They noted that markets often move against prevailing sentiment, encouraging investors to watch assets that have been broadly dismissed.
Some traders believe the memecoin surge could spill over into the wider altcoin market. One analyst suggested that periods of strength in memecoins are often followed by rallies in other altcoins, particularly those closely tied to meme-driven trading cycles.
Solana has historically benefited from memecoin activity, with network usage rising and falling alongside meme token trading during previous market frenzies.
Despite the memecoin rally, the broader crypto market has moved more slowly. Total cryptocurrency market capitalization increased by just over 5% during the same period, rising from $2.97 trillion to $3.13 trillion.
Bitcoin gained around 5% over the past week, trading near $92,300, while Ether rose more than 7% to hover around $3,170.
Market sentiment has also shown signs of improvement. The Crypto Fear and Greed Index returned to neutral territory on Sunday for the first time since October, reflecting a gradual shift in investor confidence.
