LunarCrush data reveals Dogecoin (DOGE) and Pepe (PEPE) are leading the memecoin sector in social activity, with DOGE recording 14.1K engaged posts and 1.9M interactions in the last 24 hours. PEPE followed with 10.4K engaged posts and 1.7M interactions. The top 10 list by social engagement also includes TRUMP, SHIB, PENGU, BONK, GIGA, WIF, WOJAK, and POPCAT, indicating a broad resurgence of interest in meme-based cryptocurrencies.
This social frenzy coincides with a powerful market rebound. After a difficult 2025 that saw a 65% decline, the total memecoin market capitalization has surged from a December low of $35 billion to approximately $47.7 billion in early January. Daily trading volumes skyrocketed by 300%, jumping from $2.17 billion on December 29 to a peak of $8.7 billion before settling around $5.22 billion.
Individual tokens have posted significant gains over the past week. Pepe Coin (PEPE) led the rally with a 60% surge, followed by Shiba Inu (SHIB) with a 25% gain and Dogecoin (DOGE) with a 20% increase. On-chain data underscores renewed institutional interest, with Dogecoin whales accumulating over 220 million tokens in a single 24-hour period.
Analysts interpret the memecoin rally as a key indicator of returning risk appetite in the broader crypto market. Vincent Liu, CIO at Kronos Research, noted traders are rotating into liquidity-rich assets with tight narratives. Pav Hundal, lead analyst at Swyftx, described memecoins as "one of the cleanest temperature checks for risk appetite," especially as Bitcoin trades sideways between $90,697 and $92,847, suggesting capital is moving further out on the risk curve.
Despite the bullish momentum, analysts caution that memecoin rallies remain highly reflexive and prone to sharp reversals. The current rebound is largely driven by positioning resets and renewed retail participation rather than fundamental changes. Key technical levels are being watched, with DOGE facing resistance at $0.15 and SHIB at $0.000009. The coming days will determine if this surge represents a sustainable trend or a short-lived sentiment trade.
