Memecoins Make a Comeback After Historic Lows, According to CryptoQuant

Memecoins are witnessing a remarkable revival following a drastic decline that saw their market share plummet to unprecedented levels in December 2025.

Since the dawn of 2026, the sector has added over $8 billion to its market capitalization, with several major tokens experiencing double-digit gains that took traders by surprise.

Memecoins Are Rising - Memecoins Market Cap

This sudden growth comes after a year of waning interest and diminishing valuations in the memecoin space. According to CryptoQuant data, memecoin dominance in the altcoin market dropped to a historic low of 3.2% in December 2025, down from 11% in November 2024.

Memecoins Are Rising - Memecoin Dominance in Altcoin Markets

Historically, such lows have preceded significant memecoin rallies, hinting that this rebound might signify the start of another speculative cycle.

Key Market Movements After the Holiday Slump

Leading the charge is PEPE, which has seen a year-to-date increase of 65%, including a 34% spike within just 24 hours. BONK also surged by 49%, while FLOKI experienced a 40% rise.

Trading volumes soared to $9 billion as short liquidations intensified these price movements. The rally ignited right after the holiday period—a time when traders typically exhibit caution in their trading strategies.

In tandem, Bitcoin's lower volatility has opened the door for speculative assets to attract more capital. Since the beginning of the year, Bitcoin has broken the $90K resistance threshold and is currently trading around $93,000.

Memecoins Are Rising - Bitcoin Price Chart

Meanwhile, Dogecoin has exited a multi-year downtrend with over a 20% gain, and Shiba Inu added 18.9% in just one week. On-chain data also indicates increased accumulation of PUMP, BONK, and FLOKI, driven by a notable rise in wallet interactions.

The social sentiment surrounding PEPE has drastically changed, with the token adding about $3 billion to its market cap in just one day. Its trading volume was more than three times the overall market average, reflecting heightened speculative interest as fear of missing out spread through various crypto platforms.

Market Recovery Driven by Platform Dominance

A report by Messari reveals that Pump.fun continues to lead Solana's token landscape, accounting for 70-77% of new launches and up to 25% of daily transactions on the network.

Since early 2024, over 13 million tokens have been created on the platform, constituting more than one-third of all tokens on Solana. The platform has generated over $866 million in lifetime revenue and used nearly all daily fees for buybacks, thereby reducing around 8% of PUMP’s circulating supply.

Memecoins Are Rising - Pump.fun All-Time Revenue chart

Despite new competing launchpads emerging, independent memecoins continue to dominate, holding 86.2% of the total market capitalization according to CoinGecko’s State of Memecoins 2025 Report. Launchpad-based tokens peaked at a 20.5% market share in January 2025 but have since declined, indicating that grassroots launches enjoy stronger community support.

Dog-themed memecoins hold a 39.5% dominance in the sector, excluding Dogecoin, while frog and cat-themed tokens like PEPE, POPCAT, and MEW have also gained popularity.

Memecoins Are Rising - Memecoin Categories and Market Share

Notably, interest in memecoins is primarily concentrated in the United States, which represented 30% of all memecoin-related page views in November 2025, up from 20% at the start of the year.

Memecoins Are Rising - Countries Most interested in Memecoins chart

Emerging markets make up seven of the top ten countries showing interest, collectively accounting for 38% of the total interest, highlighting significant retail participation in regions with mobile-first access.

Analysts Assess Historical Trends for Insights

The current market conditions echo the landscape of late 2020, which preceded the memecoin boom of 2021. A quiet December marked by low volumes transitioned into sharp gains in January, driven by post-tax-loss harvesting and renewed interest in speculative investments.

This cycle saw the sector's market capitalization surge from below $10 billion to over $100 billion. Some analysts now suggest that if the current momentum continues, the sector could reach a market cap of $69 billion during Q1 2026.

Should Bitcoin maintain its stability, it could serve as a robust foundation for a longer rally as traders shift their capital towards higher-risk assets.

Nevertheless, caution is advised. If trading volumes decrease or macroeconomic concerns intensify, the current surge may result in a bear trap. Key indicators to monitor include growth in open interest and capital flows into higher-risk assets.

If retail participation increases, 2026 might mirror the explosive memecoin growth seen in 2021; however, persistent volatility is likely to remain a constant in the market.