Memecoin trading spike fades as traders lock in early gains

Memecoin trading activity briefly surged on Monday as traders moved to secure profits following a strong start to the year.

Total memecoin trading volume climbed to $5.62 billion, marking a 106% increase from the previous day, according to CoinMarketCap data.

Despite the jump in activity, the overall memecoin market capitalisation fell by around 6% during the same period.

Trading volume later eased back to roughly $3.6 billion, representing a daily decline of more than 24%.

Analysts said the combination of rising volume and falling market value suggests heavy short-term trading rather than new money entering the market.

“In thin liquidity conditions, elevated activity can still push prices lower even as volume spikes,”

Vincent Liu said.

“The initial surge and subsequent drop in volume suggest speculative momentum has cooled,”

Vincent Liu said.

Market participants appeared to rotate capital rapidly between tokens, a pattern commonly seen during periods of profit-taking.

Memecoins began the year strongly, with total market capitalisation rising from $38 billion in late December to nearly $47.7 billion by early January.