A reversal in memecoins may come before merchants count on, even amid uneven situations throughout the broader crypto market, if historical past is any indication, in keeping with crypto sentiment platform Santiment.
“There’s a rising narrative of “nostalgia” concerning memecoins, with many merchants treating the sector as whether it is completely lifeless,” Santiment mentioned in a report revealed on Friday.
“This collective acceptance of the ‘finish of the meme period’ is a basic capitulation sign,” Santiment mentioned, explaining that when a sector of the market is totally written off, it’s usually the “contrarian time” to begin paying consideration.
“Watch sectors that the group has left for lifeless; max ache usually marks the underside,” Santiment mentioned.
Memecoin market cap falls amid market decline
The full memecoin market capitalization has fallen 34.04% to $31.02 billion over the previous 30 days amid a wider crypto market decline that noticed Bitcoin (BTC) fall close to $60,000 on Feb. 3, the bottom level the asset’s value has been since October 2024, in keeping with CoinMarketCap.
Among the many high 100 cryptocurrencies, memecoin positive factors over the previous seven days have been principally modest, apart from outlier Pippin (PIPPIN), which surged 243.17%. The subsequent finest performers have been Official Trump (TRUMP), up 1.37%, and Shiba Inu (SHIB), up 1.11%.
In earlier cycles, market individuals usually anticipated Bitcoin to succeed in new all-time highs first, adopted by a rotation of capital into Ethereum (ETH) after which into higher-risk altcoins.
Nonetheless, as Bitcoin matures and institutional curiosity grows, some analysts at the moment are questioning whether or not the acquainted rotation sample will play out the identical means.
Altcoin season will not be “rising tide raises all ships”
Others have steered that, not like earlier altcoin seasons the place positive factors have been broadly unfold throughout the market, the following altcoin season could also be way more selective, with solely sure cryptocurrencies seeing upside.
Craig Cobb, the founding father of The Develop Me, informed Journal in August 2025 that the following altcoin season is not going to be “the rising tide raises all ships.”
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Santiment pointed to a rising worry on the crypto market on social media, with considerably extra bearish than bullish feedback, which can even be an indication {that a} market rebound is underway.
“Traditionally, markets transfer towards the group’s expectations. This lingering disbelief, even throughout a value pump, is a wholesome signal for a possible sustained restoration,” Santiment mentioned.
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