The cryptocurrency market's meme coin sector is demonstrating early signs of rejuvenation following a period of subdued performance. On Monday, total market capitalization for meme coins increased by approximately 7%, reaching a valuation near $52.4 billion. This uptick contrasts with dynamics throughout the prior quarter, during which many of these tokens remained stagnant or underperformed relative to the broader crypto market.
Leading the recent rally, well-known meme cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) have each delivered roughly 20% gains over the past seven days. While these increases are notable given their market positioning and exposure, other meme tokens have eclipsed these figures by a substantial margin since the start of the year.
Several altcoin tokens that experienced significant appreciation over the past week include Pepe (PEPE), Floki (FLOKI), Bonk (BONK), and Pudgy Penguins (PENGU). Notably, Pepe's market capitalization surged by nearly $1 billion within a 48-hour timeframe, underscoring the intensity of market interest in certain emerging meme projects. Floki and Bonk are also anticipated to potentially follow similar trajectories based on current momentum patterns.
A cryptocurrency trader known publicly as Unipcs, also referred to by the moniker "Bonk Guy," highlighted that approximately six of the top ten gainers among the leading 100 cryptocurrencies are presently meme coins. The trader characterizes the current market environment as a rotation phase oriented around momentum, wherein large-cap meme coins exhibiting daily fluctuations between 20% and 40% typically inspire subsequent rallies in smaller-cap counterparts.
For investors without prior holdings in this segment, Unipcs recommends a measured, gradual approach to accumulation amid the prevailing volatility. He has characterized the unfolding period as "the quarter of meme coins," suggesting a thematic cycle favoring this asset class. Furthermore, he singled out Pudgy Penguins as a token deserving attention, citing its tangible revenue streams and expanding global brand presence as factors that may underpin its market appreciation.
From a broader market perspective, data sourced from CryptoQuant indicates that meme coin dominance within the altcoin category has experienced a pronounced decline since the peak enthusiasm observed in November 2024. The proportion of meme coin market capitalization relative to the entire altcoin market fell from roughly 11% during that month to a historical low near 3.2% by December 2025, emphasizing a period of compressed investor positioning ahead of the current resurgence.
Such historical precedence of sharp contractions in meme coin market share has typically preceded subsequent periods of strong rallies within the sector. Market commentators, including Bitcoin investor Lark Davis, have noted that since January 1, meme coin valuations have expanded substantially, rising by more than $10 billion. This expansion aligns with a potential risk-on shift in investor sentiment during the first quarter, which could catalyze further gains across meme tokens.
The recent performance of meme coins exemplifies the volatility and speculative nature inherent to this asset class. While market capitalization growth and price appreciation suggest renewed enthusiasm, these trends highlight the elevated risk exposure for market participants seeking returns amidst fluctuating investor appetite.
Overall, the current resurgence in meme coins like Dogecoin and Shiba Inu, coupled with dynamic moves from other meme tokens, reflects a shifting paradigm within the crypto ecosystem. This phase may represent an opportunity for informed investors to engage with high-volatility assets, provided they manage the associated risks effectively.