Santiment: The Memecoin market is showing a 'typical surrender signal'

A reversal in the memecoin market could occur sooner than traders expect, even as the overall cryptocurrency market remains volatile and unpredictable. According to cryptocurrency sentiment analysis platform Santiment, history has repeatedly shown this.

“An increasingly common narrative is emerging about nostalgia for memecoin, as many traders consider this sector to be completely past its prime,” Santiment stated in a report released on Friday.

Dogecoin’s price, which often experiences significant fluctuations during memecoin rallies, has dropped 32% over the past 30 days | Source: CoinMarketCap “The widespread acceptance that ‘the meme era is over’ is a classic sign of market capitulation,” Santiment explained. “When a sector is viewed as no longer valuable, it often signals a ‘countertrend’ to start paying attention.”

Santiment recommends investors closely monitor sectors that the majority of the market has abandoned. “Extreme pain is often a sign that the market has bottomed out,” the organization noted.

Memecoin Market Capitalization Plummets Amid Recession

The total market capitalization of memecoin has decreased by 34.04%, down to $31.02 billion over the past 30 days, amid a broader crypto market downturn. According to data from CoinMarketCap, Bitcoin (BTC) fell close to $60,000 on February 3 — the lowest since October 2024.

Among the top 100 cryptocurrencies by market cap, most memecoins have only seen modest gains over the past week, except for the notable case of Pippin (PIPPIN), which surged by 243.17%. Two other coins with relatively good performance are Official Trump (TRUMP), up 1.37%, and Shiba Inu (SHIB), up 1.11%.

Historically, market cycles have shown Bitcoin reaching new all-time highs first, followed by a rotation of capital into Ethereum (ETH), and finally into higher-risk altcoins.

However, as Bitcoin matures and attracts interest from large institutions, some analysts are beginning to question whether this traditional capital rotation cycle will continue in the same way.

Next Altcoin Season May Be More Selective

Some experts believe that unlike previous altcoin seasons, where profits were widely distributed across the market, the upcoming altcoin season may be more selective, with only certain cryptocurrencies having a chance to break out.

Craig Cobb, founder of The Grow Me, shared with a magazine in August 2025 that the next altcoin season would no longer be a “rising tide lifts all boats” scenario. Instead, profits will be concentrated in a few standout projects.

Santiment also pointed out that on social media platforms, anxiety is increasing significantly, with negative comments far outnumbering positive ones. This could be a sign that the market is preparing for a rebound.

“Historically, markets tend to go against the crowd’s expectations. Persistent skepticism, even when prices are rising, is a positive sign, indicating the potential for sustainable recovery in the future,” Santiment concluded.

Mr. Teacher