Memecoins extended their early 2026 bounce on Monday as traders rotated toward higher beta tokens and social chatter revived chatter about “meme season,” with dog-themed coins leading broad gains across the category.
Dogecoin rose as much as 11% in 24 hours, while shiba inu gained around 13%, according to data from CoinGecko. The Solana-based bonk rose almost 50% in seven days, while floki added close to 40% on the week as the rally spread to mid- and small-cap names.
Traders also noted the continued momentum of the PEPE, which has become a popular indicator of speculative risk positioning.
The measure is not limited to just a few tickers. A CryptoQuant chart tracking the dominance of memecoins within the altcoin market shows the ratio falling to around 0.032 in December, marking an all-time low after falling steadily from the post-mania peak near 0.11 in November 2024.
The ratio has increased in recent sessions, which independent analyst Darkfost interprets as a sign that capital is returning to the most speculative corner of the market after weeks of decline.
That said, the same chart highlights how fast meme cycles can be: the last time the domain rose sharply from these levels, it quickly accelerated into a crowded trade.
Other metrics underscore why volatility remains part of the story.
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 bullish pressures and sudden declines when large holders move.
Charging…
Market participants say the timing fits a familiar setup: bitcoin and ether have rebounded but remain well below all-time highs, and liquidity remains uneven after the holidays. That often pushes traders toward tokens that can move sharply in response to relatively small inflows, especially those with deep derivatives markets and high social momentum.
Still, the desks caution against interpreting the bounce as a clean start to a prolonged altcoin run. 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 sign is simple: memecoins are acting as a market temperature check to detect speculative appetite, and the thermometer is rising again.
