Meme coins rebound unstoppable: market reversal after retail investor sentiment hits bottom

【Blockchain Rhythm】Entering 2026, funds in the Meme coin sector are becoming active again. Over the past week, the market capitalization of related tokens increased by more than 23%, rising from approximately $38 billion on December 29 to over $47.7 billion.

Specifically, Dogecoin and Shiba Inu each rose over 20% and 19.9%, respectively, while Pepe performed the best, with a surge of over 65%. Trading activity also significantly increased, with trading volume expanding from about $2.17 billion to $8.7 billion, an increase of approximately 300% in just one week.

Analysts point out that Meme coins, as high-risk assets, tend to lead the market when they strengthen, often reflecting a warming of market risk appetite. Data from Santiment supports this view — the current rebound coincides with the most pessimistic retail investor sentiment, aligning with the market’s “contrarian” historical pattern. In other words, when most people are bearish, it often signals a market reversal.

Many traders are looking further ahead. They believe that if this strong trend in Meme coins can continue, funds may gradually flow into other altcoin sectors. Among them, the Solana ecosystem is very likely to become a major beneficiary, and subsequent capital flows are worth monitoring.