Crypto traders have flocked back to memecoins, boosting market cap by over 23% in the last week, reaching $47.7 billion. Dogecoin, Shibu Inu, and Pepe saw gains of over 20%, 19.9%, and 65%, respectively. Transaction volume surged from $2.17 billion to $8.7 billion, a 300% increase.

Memecoins experienced a 65% decline in 2025, hitting $35 billion in mid-December, signaling low risk tolerance among traders. Market sentiment shifted after Christmas, with a bounce following a period of fear, uncertainty, and doubt among retail traders.

Analysts suggest an altcoin rally could follow memecoins, with a trader speculating that meme coin strength often precedes gains in other altcoins, particularly Solana. The altcoin market may see increased activity as capital flows into alternative assets.

While memecoins surged, the wider crypto market saw more modest gains, with an overall market cap increase of over 5%. Bitcoin rose 5% to $92,335, while Ether increased 7.3% to $3,168. Overall sentiment improved, with the Crypto Fear and Greed Index flipping to neutral at a score of 40.

Read more at Cointelegraph: Memecoins Jump 23% Post-Holiday as Traders Return