The overall market capitalization of memecoins has seen a decline of approximately 34% over the last month, coinciding with a downturn in the broader crypto market. However, Santiment implies that this dip may be short-lived.

A report from Santiment highlights a growing sentiment of nostalgia among traders regarding memecoins, indicating they are considering the sector as potentially defunct. “There is a growing narrative of ’nostalgia’ regarding memecoins, with many traders treating the sector as if it is permanently dead,” they stated.

Dogecoin Price Source: CoinMarketCap

Santiment further elaborated that the general market’s dismissal of memecoins is often a classic sign of capitulation, suggesting this could be the optimal moment for investors to reassess their positions.

Why the Memecoin Market Has Taken a Hit

The total market cap for memecoins decreased to $31.02 billion, reflecting a fall of 34.04% due to a broader decline affecting cryptocurrencies. Bitcoin’s price recently dropped close to $60,000, marking its lowest since late 2024.

Despite the bearish trend, Santiment points to the potential for an imminent shift, as a reversal in sentiment could emerge sooner than anticipated.

Market Sentiment and Recovery Outlook

Traders should remain vigilant as historical trends suggest that markets often rebound against prevailing expectations. “Historically, markets move against the crowd’s expectations. This lingering disbelief, even during a price pump, is a healthy sign for a potential sustained recovery,” Santiment concluded.