Key Insights
- Meme tokens rose sharply in early 2026 after heavy losses last year
- The volume of trading and market value surged at a rate higher than that of the broader crypto market.
- The change in retail sentiment contributed to making meme assets one of the sets of crypto coins to monitor.
Crypto Coins to Watch as Meme Coin Market Opens 2026 With Sharp Rebound
The crypto coins to watch have undergone significant changes at the beginning of 2026, when the meme coin industry experienced a tremendous revival following a prolonged recession in the previous year.
Moreover, the meme coin market had reported a surge of around 30% at the start of the year, reversing the losses it had recorded in 2025. This reversal occurred at a time when Bitcoin was still trading within a range above the $90,000 level and was nearing the $100,000 mark, a price range that many market actors closely monitor.
Market Capitalization and Volume Show Rapid Expansion
According to data from CoinMarketCap, the total market capitalization of meme coins rose to $47.7 billion on Monday, up from approximately $38 billion as of December 29.
The increase followed a period in which meme coins had fallen more than 65% across 2025, reaching a low of about $35 billion on Dec. 19, the weakest level for the sector during the year.
Furthermore, Meme coin trading volume increased from $2.17 billion on December 29 to $8.7 billion by Monday, representing a rise of approximately 300% over a short period.
The sharp increase in volume placed meme-related assets among the most actively traded crypto coins to watch at the beginning of the year, based on aggregate transaction data.
Leading Meme Coins Post Double-Digit Weekly Gains
The three largest meme coins led the market capitalization rebound. Dogecoin has had over 20% gains in the last week, whereas Shiba Inu has had about 19.9% gains in the past week. However, Pepe had the highest gain in the top group, as the coin increased by over 65% in a single week.
These price movements occurred as the broader cryptocurrency market saw comparatively slower growth. Overall, the crypto market capitalization increased by just over 5%, rising from $2.97 trillion to $3.13 trillion.
Crypto analysts Santiment report that a historical reversal of certain market segments in the short term is the key to supporting extreme levels of sentiment. Sentiment stated that price action often develops counter to prevailing expectations during periods of heightened pessimism.
Capital Rotation Signals Broader Altcoin Market.
Adding more to the report, Social media market commentary also suggested possible capital rotation effects. Wealth manger, a renowned Crypto trader, stated that large-scale altcoin rallies have, in the past, followed strong periods of meme coins.
According to the trader, Solana has been one of the assets that has tended to gain during meme-driven trading activity in previous cycles.
Earlier in the speculative period, Solana was a significant ecosystem for meme coin issuance and trading. The use of networks was reported to increase and decrease according to demand for memes, and the activity in an ecosystem was associated with changes in investor behavior.
These dynamics led Solana to be mentioned alongside meme assets as a cryptocurrency, which can be observed during periods of higher speculative involvement.
The 2025 Downward Revision Establishes Conditions of 2026 Growth.
The recovering momentum is preceded by a sharp decline across the entire year of 2025, during which meme coins are expected to underperform due to a decreased risk appetite in digital asset markets.
Being a speculative asset, meme coins were among the first to be impacted as traders reduced their exposure to more risky positions. The drawdown lasted a year, culminating in December, when the market capitalization reached its lowest point.
Nevertheless, data analysts have viewed the early 2026 recovery as an indicator of new risk-taking behavior. Additionally, Meme coins and retail-based trading activities are the most actively tracked variables when detecting any change in sentiment due to their volatility. Such positioning has solidified their status as crypto coins to consider when evaluating short-term changes in market participation.
Tax Dynamics and Trading in the First Part of the Year.
According to commentary from analyst Travelex, the classification of cryptocurrencies as property allows market participants to sell and repurchase assets without triggering wash sale restrictions.
This framework enables traders and funds to reset tax positions at year-end and re-enter positions at the start of the new year.
Tervelix observed that the patterns have followed through the first week of most calendar years, except during major bear market periods. This relationship was mentioned as a factor that contributed to the initial momentum experienced by meme coins, which also put them on track to be among the most important crypto coins to watch during the first quarter of 2026.
