A turnaround in memecoins may arrive sooner than traders anticipate, despite ongoing volatility across the wider crypto market, according to Santiment.
In a report released Friday, Santiment noted that a growing sense of “nostalgia” has emerged around memecoins, with many traders behaving as though the sector is permanently finished.
“This broad acceptance of the ‘end of the meme era’ is a classic capitulation signal,” said Santiment, noting that when a sector is widely written off, it often becomes the contrarian moment to start paying attention.
“Keep an eye on sectors the crowd has abandoned; peak pessimism frequently marks the bottom,” the firm added.
Memecoin market cap slides amid broader downturn
The total memecoin market capitalization has dropped 34.04% to $31.02 billion over the past 30 days, mirroring weakness across the wider crypto market. During the sell-off, Bitcoin fell close to $60,000 on Feb. 3 — its lowest level since October 2024 — according to CoinMarketCap.
Among the top 100 cryptocurrencies, most memecoins posted only modest gains over the past week. The standout was Pippin (PIPPIN), which jumped 243.17%. Other notable movers included Official Trump (TRUMP), up 1.37%, and Shiba Inu (SHIB), which gained 1.11%.
In previous market cycles, investors typically anticipated Bitcoin reaching fresh all-time highs before capital rotated into Ethereum and then into higher-risk altcoins. However, with Bitcoin maturing and attracting greater institutional participation, some analysts are questioning whether that familiar rotation pattern will unfold in the same way this time.
A more selective altcoin season?
Some market observers argue that the next altcoin season may not lift all tokens equally. Rather than a broad rally, gains could be concentrated in a smaller group of projects.
Craig Cobb, founder of The Grow Me, told Magazine in August 2025 that the next altcoin season will not be a case of “a rising tide lifting all ships.”
Santiment also highlighted growing fear across crypto social media, where bearish commentary currently outweighs bullish sentiment — another potential contrarian indicator.
“Historically, markets tend to move against the crowd’s expectations. Persistent disbelief, even during price rebounds, can be a healthy sign of a sustainable recovery,” Santiment said.
