Memecoins extended their early 2026 rebound on Monday as traders turned to higher beta tokens and social chatter reignited talk of “meme season,” with dog-themed coins leading to broad gains in the category.
Dogecoin rose as much as 11% over 24 hours, while Shiba Inu gained around 13%, according to CoinGecko data. The Solana-based bonk soared nearly 50% over seven days, while the floki added nearly 40% over the week as the rally spread to mid- and small-cap names.
Traders also highlighted the continued momentum in PEPE, which has become a popular indicator of speculative risk positioning.
This decision is not limited to a few tickers. A CryptoQuant chart tracking memecoin’s dominance in the altcoin market shows the ratio fell to around 0.032 in December, marking an all-time low after sliding steadily since the post-mania peak near 0.11 in November 2024.
The ratio has increased slightly in recent sessions, which independent analyst Darkfost interprets as a sign of a return of capital to the more speculative segment of the market after weeks of decline.
That said, the same chart highlights just how fast meme cycles can be: The last time dominance rose sharply from these levels, it quickly accelerated into a crowded trade.
Other indicators highlight why volatility is still part of the problem.
Santiment data shows that the 10 largest SHIB wallets control almost 63% of the supply, with the largest wallet holding about 41%. This level of concentration can amplify both upward pressure and sudden declines when large holders move.
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Market participants say the timing fits a familiar pattern: Bitcoin and ether have rebounded but remain well below all-time highs, and liquidity is still spotty after the holidays. This often pushes traders toward tokens that can move sharply in response to relatively small flows, especially those with deep derivatives markets and strong social dynamics.
Still, bureaus caution against viewing the rebound as a good start to a prolonged run for the altcoin. Memecoin rallies tend to be self-reinforcing in the short term, but are fragile when positioning becomes crowded, spot demand fades, or bitcoin declines.
For now, traders say the main signal is simple: memecoins act as a market temperature check for speculative appetite, and the thermometer is rising again.
