Memecoin Craze Returns As Traders Approach Risk Once More

Memecoin mania is back as traders chase risk again, with an $8B market rebound and a 300% surge in trading volumes.

The crypto market has entered the new year with a familiar energy from the previous one.

Last year, many speculative tokens were launched, especially in the memecoin space.

This was even stronger with the availability of tools like Pump.fun on Solana, where non-developers could launch a token with a few button clicks.

However, before the end of the year, many of these tokens lost the majority of their value.

As of writing, it now seems that the memecoin buzz is back in action, and investors have rekindled their risk appetite.

Memecoin Social Buzz and the 8 Billion Dollar Rebound

The trend change has been nothing short of explosive. According to data from CoinMarketCap, the total market value of the sector bottomed out at $35 billion on December 19. 

This was the lowest level of the previous year. 

Memecoin buzz returns in full force | source: CoinMarketCap

However, by early January, that figure surged to over $47.7 billion. This stands as an inflow of more than $12 billion in fresh capital in just over two weeks.

Another major signal was the explosion in liquidity. 24-hour trading volumes for these tokens jumped from $2.17 billion in late December to a peak of $8.7 billion. 

This 300% increase shows that money is moving fast and traders are rotating back into assets where prices react quickly to new information.

Leading the Charge into 2026

While larger assets like Bitcoin have been drifting sideways, memecoins have posted double-digit gains.

For example, PEPE rose over 65% in a single week while Dogecoin climbed 20% and saw big holders buy 325 million new tokens.

Shiba Inu jumped nearly 20% as retail interest returned and Bonk surged 11% daily as the Solana ecosystem heated up.

These gains have pushed the buzz to levels not seen in months. When these tokens lead the market, it usually means traders are comfortable taking big risks again.

A Temperature Check for Global Risk Appetite

The Fear & Greed Index has recently climbed out of the “extreme fear” zone across the entire market.

This move toward neutral territory naturally strengthens the idea that the peak pessimism of last year is over. 

The crypto fear and greed index has climbed out of fear zones | source: CoinMarketCap

However, this trend can be a double-edged sword. Historical data show that when speculative hype moves too far ahead of the actual market health, a “sobering correction” tends to follow.

The memecoin craze is also highly reflexive. This means that as more people talk about a coin, more people buy it, which drives the price up and creates even more talk. 

Related Reading: Memecoins Rise From The Dead: Historic Rally Begins

Macro Risks vs Crypto Momentum

Even though the internal crypto momentum looks great, outside factors are still a threat.

Geopolitical tensions or shifts in US economic policy could quickly turn the “risk-on” mood back to “risk-off.” 

If global instability increases, the first assets traders will sell are their most speculative ones.

In other words, the market is running on hope and enthusiasm right now and until more certainty in international politics shows up, it might help to see these moves as short-lived, rather than the start of a permanent bull market.

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