Introduction
The cryptocurrency market is showing its first signs of revival in 2025, with meme coins leading the charge. After a painful Q4 that saw double-digit declines across many assets, pushing analysts to question the industry’s state, the meme coin niche has unexpectedly emerged as the biggest gainer. Assets like BONK, PEPE, Shiba Inu, and Dogecoin have posted significant double-digit gains, suggesting a potential shift in investor behavior and risk appetite. Analysts are watching closely to see if this marks the return of the meme coin frenzy or a brief speculative uptick in a longer bearish trend.
Key Points
- BONK emerged as the top performer, surging 40% daily and over 60% weekly to re-enter the top 100 altcoins by market cap.
- Analysts suggest the meme coin surge may reflect traders positioning for upside after a prolonged consolidation period, despite high volatility.
- Despite recent gains, major meme coins like PEPE and DOGE remain down approximately 80% from their all-time highs, indicating cautious optimism.
The Meme Coin Surge: Data Points to a Sharp Reversal
Data from CoinGecko reveals a dramatic shift in market performance, with meme coins dominating the top gainers since last Friday. BONK has emerged as the standout performer, surging by 40% in the past 24 hours and more than 60% since the previous Sunday. This explosive growth has propelled the asset back into the top 100 altcoins by market capitalization, a significant milestone for a token in the highly speculative meme coin category.
The rally is broad-based within the niche. PEPE, the frog-themed token, follows with a 13% daily increase and an impressive 66% gain over the past week. Shiba Inu (SHIB) is also firmly in the green, up 11% daily and 21% weekly. From the larger-cap alternatives, Dogecoin (DOGE) has become the biggest gainer, rising 6% since yesterday and 23% over the week. The performance of the Official Trump (TRUMP) token, which surged 7% in a day, adds a layer of geopolitical narrative, potentially linked to recent actions by the US President.
Analyst Insight: Positioning for Upside After Consolidation
This early-year rotation into larger-cap meme coins has caught the attention of market analysts. In a statement to CryptoPotato, Jake Kennis, Senior Research Analyst at blockchain analytics platform Nansen, suggested the move may indicate that “traders are positioning for upside after months of consolidation.” He noted that these more speculative assets were among the hardest hit during the market downturn in October 2025, suffering significant downside volatility.
Kennis explained that the broader market sentiment had turned extremely bearish towards meme coins based on poor price action and a complete absence of risk appetite. The current surge, therefore, could represent a tentative return of speculative capital to one of the market’s most volatile sectors. However, this interpretation comes with a crucial caveat from the analyst himself.
A Cautious Outlook: Gains Amidst a Longer-Term Downtrend
Despite the promising short-term data, Kennis provides a necessary reality check for investors considering the meme coin frenzy is back in full force. He admitted that meme coins have been in a persistent downtrend relative to Bitcoin (BTC), and these brief upticks would “have to be confirmed on higher timeframes.” The underlying data supports this caution.
Major assets like PEPE and DOGE remain down approximately 80% from their respective all-time highs (ATHs). This stark figure underscores that the recent double-digit percentage gains, while notable, are occurring from deeply depressed levels. The rally, therefore, may represent a technical rebound or a short-term sentiment shift rather than a fundamental reversal of the longer-term bearish trend that characterized the painful Q4 of 2025. The market’s next moves will be critical in determining whether this is the beginning of a sustained meme coin revival or merely a fleeting spike in a broader consolidation phase.
📎 Related coverage from: cryptopotato.com
