Memecoin trading volume exploded to more than $5 billion in a single day, before falling as quickly as it rose. Behind this spectacular volatility lies a reality that analysts know well: short-term speculation reigns supreme. But this time, is it a sign of lasting shortness of breath?
In brief
- Memecoin trading volume jumped to $5.62 billion on Monday, up 106% in 24 hours.
- The market capitalization simultaneously fell by 6%, a sign of massive profit-taking.
- Volumes fell back to $3.6 billion the next day, a drop of more than 24%.
Memecoins go up then investors cash in
On Monday, January 20, memecoin trading volume reached $5.62 billion according to CoinMarketCap, an increase of 106% in a single day. However, at the same time, the sector's market capitalization fell by 6%. An apparent paradox, but very revealing.
Vincent Liu, chief investment officer at Kronos Research, is adamant the move does not reflect any influx of fresh capital. Behind these figures are mainly profit taking, rapid rotations between assets and short-term resales.
“ In a context of low liquidity, intense activity can still lower prices, even in the event of a sharp increase in volumes “, he explains.
In short: lots of noise, little substance. Momentum traders enjoyed a good start to the yearthe capitalization of memecoins increased from 38 to 47.7 billion dollars between December 29 and January 5, to close their positions.
Once these sales were absorbed, volumes normalized as quickly as they had exploded, falling to $3.6 billion the next day, a decline of more than 24%.
Liu sums up the mechanics perfectly: “ Volume often experiences brief spikes around catalysts before quickly normalizing. »
A structurally fragile sector, dependent on Bitcoin
If today's surge has attracted attention, it should not obscure a structural reality: memecoins remain among the riskiest assets in the crypto ecosystem. Kadan Stadelmann, technical director of Komodo, is blunt: “ The fundamentals of the memecoin market are generally weak and fueled by speculation. »
This observation is not without consequences. In 2025, the number of failed crypto projects will exceed 11.6 million, an all-time high, according to a CoinGecko analysis by Shaun Paul Lee. Memecoins, often devoid of real use cases, have largely contributed to this massacre.
On social networks, the Santiment platform observed a resurgence of discussions around memecoins this Monday. But the tone is ambivalent: investors denounce repeated scams, while remaining attracted by the promise of quick gains. A contradiction which says a lot about the psychology of this market.
For 2026, Stadelmann points to a determining factor: Bitcoin. “ The performance of memecoins will depend, as usual, on BTC. However, it underperformed gold in 2025, and the same thing could happen again this year. » A scenario which would clearly be unfavorable to the most speculative assets on the market.
Monday's peak looks less like a revival and more like a final speculative gasp. Until bitcoin regains solid and lasting momentum, memecoins will remain what they have always been: high-risk bets, driven by the enthusiasm of the moment, and often sanctioned by the market.
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