According to crypto sentiment platform Santiment, if history is any indication, a reversal in memecoins could occur ahead of traders expect, even amid choppy conditions within the broader crypto market.
“There is a growing narrative of ‘nostalgia’ surrounding memecoins, and lots of traders are treating the sector as whether it is dead ceaselessly,” Santiment said in a report published Friday.
The price of Dogecoin, which has historically moved significantly during memecoin uptrends, has fallen by 32% within the last 30 days. Source: CoinMarketCap
“This collective acceptance of the 'end of the meme era' is a classic give up signal,” Santiment said, explaining that when a market sector has been completely written off, it is commonly “time to take notice.”
“Observe sectors that the gang has left to die; the utmost pain often marks the underside,” Santiment said.
Memecoin market cap is falling attributable to the market decline
The total memecoin market cap has fallen 34.04% to $31.02 billion over the past 30 days, reflecting a broader decline within the crypto market that saw Bitcoin (BTC) fall to almost $60,000 on February 3, marking the bottom level of the asset's price since October 2024, based on CoinMarketCap.
Among the highest 100 cryptocurrencies, memecoin gains over the past seven days have been mostly modest, except for outlier Pippin (PIPPIN), which gained 243.17%. The next best performers were Official Trump (TRUMP), up 1.37%, and Shiba Inu (SHIB), up 1.11%.
In previous cycles, market participants often expected Bitcoin to hit latest all-time highs first, followed by capital rotation into Ethereum (ETH) after which into riskier altcoins.
However, as Bitcoin matures and institutional interest grows, some analysts are actually wondering whether the familiar rotation pattern could have the identical impact.
Altcoin Season May Not Be “Rising Tide Raises All Ships”
Others have suggested that unlike previous altcoin seasons where gains were broadly spread across the market, the following altcoin season may very well be much more selective, with only certain cryptocurrencies seeing upside.
Craig Cobb, the founding father of The Grow Me, told the magazine in August 2025 that the following altcoin season is not going to be “the rising tide lifts all ships.”
Santiment pointed to growing fear of the crypto market on social media, with significantly more bearish than bullish comments, which is also an indication that a market recovery is underway.
“Historically, markets move contrary to the expectations of the gang. This continued disbelief, even during a price increase, is a healthy sign of a possible sustainable recovery,” said Santiment.
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