Renewed Risk Appetite Drives Memecoin Market Recover
Social media activity around memecoins is accelerating, signaling a renewed appetite for risk across the crypto market. After a prolonged downturn in 2025, speculative assets are once again drawing attention as trader sentiment improves and capital rotates back into high-volatility tokens.
Memecoin Market Rebounds After Sharp Decline
Memecoins suffered a steep correction in 2025, with the sector’s total market capitalization falling over 65% and bottoming near $35 billion in mid-December. This decline reflected reduced risk-taking as traders shifted toward more stable assets. Since then, the sector has rebounded sharply, with market capitalization climbing to around $45 billion, after briefly surpassing $47.7 billion earlier this week.
THE market intelligence platform Santiment said on Wednesday.
Transaction volumes have mirrored this recovery, jumping nearly 300% in under a month, before stabilizing at elevated levels. This surge suggests renewed participation, particularly from retail traders.
Memecoins often lead during early risk-on phases, as they thrive on social coordination and speculative momentum. The recent rebound in broader sentiment indicators, moving away from extreme fear, supports the idea that risk tolerance is gradually returning to crypto markets.
Memecoins are widely viewed as a real-time gauge of speculative appetite. While momentum may continue if liquidity and engagement persist, experts caution that memecoin rallies remain highly reflexive, with sharp reversals possible once inflows slow.
For now, the growing social buzz suggests traders are once again willing to step further out on the risk curve.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.