The total memecoin market capitalization has dropped roughly 34% over the past month as the broader market sold off, but Santiment suggests the slump may not last long.
A reversal in memecoins could come sooner than traders expect, even amid choppy conditions across the broader crypto market, if history is any indication, according to crypto sentiment platform Santiment.
“There is a growing narrative of “nostalgia” regarding memecoins, with many traders treating the sector as if it is permanently dead,” Santiment said in a report published on Friday.
“This collective acceptance of the ‘end of the meme era’ is a classic capitulation signal,” Santiment said, explaining that when a sector of the market is completely written off, it is often the “contrarian time” to start paying attention.
“Watch sectors that the crowd has left for dead; max pain often marks the bottom,” Santiment said.
The total memecoin market capitalization has fallen 34.04% to $31.02 billion over the past 30 days amid a wider crypto market decline that saw Bitcoin (BTC) fall near $60,000 on Feb. 3, the lowest point the asset’s price has been since October 2024, according to CoinMarketCap.
Among the top 100 cryptocurrencies, memecoin gains over the past seven days were mostly modest, except for outlier Pippin (PIPPIN), which surged 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 reach new all-time highs first, followed by a rotation of capital into Ethereum (ETH) and then into higher-risk altcoins.
However, as Bitcoin matures and institutional interest grows, some analysts are now questioning whether the familiar rotation pattern will play out the same way.
Others have suggested that, unlike previous altcoin seasons where gains were broadly spread across the market, the next altcoin season may be far more selective, with only certain cryptocurrencies seeing upside.
Craig Cobb, the founder of The Grow Me, told Magazine in August 2025 that the next altcoin season will not be “the rising tide raises all ships.”
Related: Bitcoin holders are being tested as inflation eases: Pompliano
Santiment pointed to a growing fear on the crypto market on social media, with significantly more bearish than bullish comments, which may also be a sign that a market rebound is underway.
“Historically, markets move against the crowd’s expectations. This lingering disbelief, even during a price pump, is a healthy sign for a potential sustained recovery,” Santiment said.
