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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.
That early momentum faded in the following days as broader crypto market volatility returned.
“The overall fundamentals of the memecoin market are poor and driven by speculation,”
Kadan Stadelmann said.
“This results in constant capital rotations between memecoins, causing price downturns in certain coins and appreciation in others,”
Kadan Stadelmann said.
Analysts noted that social media discussion around memecoins has recently increased, often focusing on frustration over rug pulls.
Despite the risks, traders continue to be drawn to memecoins for the possibility of rapid gains.
Memecoins were among the hardest hit sectors during last year’s crypto downturn, which saw millions of projects fail.
Market observers view memecoin performance as a gauge of broader investor appetite for risk.
Stadelmann said the sector’s outlook this year will largely depend on Bitcoin’s performance.
“Memecoins’ market performance in 2026 will as usual depend on Bitcoin,”
Kadan Stadelmann said.
At the time of reporting, Bitcoin price was $92,469.72.