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Memecoins Crawl Back: 97% Crash Reversal Begins

Memecoins Crawl Back: 97% Crash Reversal Begins
Published January 5, 2026
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Memecoin dominance within altcoins crashed to a historic 0.032 in December 2025 after commanding 11% of the market in November 2024. Recent gains suggest the sector may be staging a comeback from extreme lows.

The memecoin sector has clawed its way back from the grave after sinking to historic lows in December 2025. Fresh data reveals a dramatic shift in market dynamics that speculative traders won't want to miss.

According to CryptoQuant, the memecoin dominance within the altcoin ecosystem plummeted to 0.032 in December 2025—a historical bottom not seen since the pre-mania period. This ratio compares total altcoin market capitalization against leading memecoins, painting a stark picture of the sector's near-death experience.

Historic Bottom Mirrors Previous Rally Setup

November 2024 marked the peak of memecoin mania when these speculative tokens commanded 11% of total altcoin market capitalization. The ratio stood at 0.11, representing peak euphoria before the brutal correction began.

Fast forward to December 2025, and that figure collapsed by 71% to just 0.032. This represents the lowest memecoin dominance on record—but history suggests this exact scenario preceded massive rallies.

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The last time memecoin dominance hit such extreme lows, the sector exploded into a multi-month rally that caught most traders off guard. Recent days have shown major memecoins posting double-digit gains, potentially signaling the early stages of a similar comeback.

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Speculative Window Opens With Caution

After the memecoin mania that ended in November 2024, memecoin dominance within the altcoin market continued to decline, eventually reaching a historical low in December 2025.

The situation has improved over recent days, with leading memecoins outperforming the broader altcoin sector. This price action suggests institutional and retail interest may be returning to these high-risk assets.

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CryptoQuant's data indicates this could mark the beginning of a memecoin resurgence, though it remains premature to declare a full-blown season. Traders with higher risk tolerance are eyeing this setup as a potential entry point, provided proper risk management protocols are followed.

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The 97% decline in memecoin market dominance represents an extreme capitulation event. Whether this translates into sustained upside momentum or another false start remains the trillion-dollar question facing speculative traders entering 2026.

#memecoin #altcoins #cryptomarket #marketdominance #speculation

Key Takeaways:

  1. Memecoin dominance collapsed from 0.11 (11%) in November 2024 to 0.032 (3.2%) in December 2025—a 71% crash
  2. This historic low mirrors the exact setup that preceded the last massive memecoin rally in the altcoin sector
  3. Major memecoins have posted strong gains in recent days, potentially signaling early-stage comeback momentum

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Memecoin Dominance Hits Historic Low: Rally Ahead?

Memecoin dominance crashed 71% to 0.032 in December 2025, matching the exact setup that preceded previous massive rallies. Data suggests comeback begins.