Memecoin Social Buzz May Indicate Renewed Risk Appetite
Social media buzz around memecoins has jumped since the start of the year and correlates with an increase in market capitalization, which analysts say means risk appetite has returned to crypto.
Several memecoins recently posted strong gains, and a speculative rally pushed up the market value of memecoins, which attracted the attention of traders and triggered a rise in public interest, market intelligence platform Santiment said on Wednesday.
Vincent Liu, chief investment officer at trading firm Kronos Research, told Cointelegraph that traders are turning to liquid-rich assets, where volatility works faster.
“Memecoins offer tight narratives, deep social bonds and immediate upside asymmetry, making them a natural vehicle for risk re-engagement when sentiment changes,” he said.
“Memecoins usually leads when appetite returns. The return to neutrality from high fear in the Fear and Greed indicator will reinforce this change, if the main ones confirm with sound, the rally may widen. Otherwise, memecoins will remain short-term trading.
The market capitalization of the meme sector has been revived
Memecoins was launched in 2015. It fell more than 65% in 2025, falling to a market cap of $35 billion on December 19, the lowest level in the past year, as risk-taking behavior among traders and capital has waned, resulting in stable investments.
According to CoinMarketCap, the market value of memecoin improved again, crossing $47.7 billion on Monday, from $38 billion on December 29. As of Thursday, it was sitting at around $45 billion.
Memecoin trading volume also spiked, from $2.17 billion on December 29 to $8.7 billion on Monday, representing a 300% increase, before settling around $5.22 billion on Thursday.
Liu said the rebound from earlier lows was driven by repricing and renewed participation in retail rather than fundamental pricing, and the momentum could be extended in the near term if social traction and liquidity continue.
However, he warns, “memecoin rallies will remain highly volatile and vulnerable to volatile changes after the flow subsides.”
Memecoins thermostat for risk appetite
Pav Hundal, lead analyst at Australian crypto exchange Swyftx, told Cointelegraph that memecoins are “the purest temperature probes of appetite in crypto.”
“The next few days will tell us if this move is a short-lived overnight fever or perhaps a sign that the market is starting to deal with risk again,” he said.
“When Bitcoin goes sideways and altcoins run, it tells us that capital is moving further up the risk curve. Historically, when estimates of this kind of divergence go above the benchmark, it can be the precursor to a serious correction for any bulls that are not picked.”
Bitcoin (BTC) has been hovering between $90,697 and $92,847 in the past 24 hours, according to crypt data aggregator CoinGecko.
It is still possible to return to the sense of danger
Traders seem to have found appetite for the current threat, but both Liu and Hundall said it could be a short-lived phenomenon.
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“Macro is a key risk variable. Any geopolitical tensions or policy shocks, including US actions tied to Venezuela or broader EM instability, could quickly change risk even if crypto-specific momentum improves,” Liu said.
“Macro conditions have improved since late last year, but this smacks of exuberance running ahead of fundamentals to me,” Hundal said.
Until we lock in more certainty in policy and politics, such movements at the global level smell more of hope than guilt.
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