A reversal in memecoins might come earlier than merchants anticipate, even amid uneven situations throughout the broader crypto market, if historical past is any indication, in accordance 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 useless,” Santiment stated in a report revealed on Friday.
“This collective acceptance of the ‘finish of the meme period’ is a basic capitulation sign,” Santiment stated, explaining that when a sector of the market is totally written off, it’s typically the “contrarian time” to begin paying consideration.
“Watch sectors that the gang has left for useless; max ache typically marks the underside,” Santiment stated.
Memecoin market cap falls amid market decline
The whole 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 worth has been since October 2024, in accordance to CoinMarketCap.
Among the many high 100 cryptocurrencies, memecoin good points over the previous seven days had been largely modest, apart from outlier Pippin (PIPPIN), which surged 243.17%. The following finest performers had been Official Trump (TRUMP), up 1.37%, and Shiba Inu (SHIB), up 1.11%.
In earlier cycles, market contributors typically anticipated Bitcoin to achieve new all-time highs first, adopted by a rotation of capital into Ethereum (ETH) after which into higher-risk altcoins.
Nevertheless, 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 manner.
Altcoin season is probably not “rising tide raises all ships”
Others have steered that, in contrast to earlier altcoin seasons the place good points had been broadly unfold throughout the market, the following altcoin season could also be much more selective, with solely sure cryptocurrencies seeing upside.
Craig Cobb, the founding father of The Develop Me, instructed 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 gang’s expectations. This lingering disbelief, even throughout a worth pump, is a wholesome signal for a possible sustained restoration,” Santiment stated.
Journal: Bitcoin’s ‘greatest bull catalyst’ can be Saylor’s liquidation: Santiment founder
