Is the Meme Coin Market Dead? Santiment Says “This Is the Bottom”

▲ Memecoin / ChatGPT-generated image

The cryptocurrency market is suffering from extreme investor sentiment contraction. However, analysts suggest that the current situation—where the public is turning away—may actually signal a classic bottoming pattern that foreshadows a strong rebound in the memecoin market.

According to data released on February 13 (local time) by crypto analytics firm Santiment, the total market capitalization of the memecoin sector has plunged about 34.04% over the past month, falling to approximately $31.02 billion. Santiment defined the current environment, in which most investors are leaving the market and declaring the end of the memecoin era, as a typical capitulation signal. Historically, when the crowd considers a particular sector to be “dead,” it has often presented the most attractive entry opportunities for contrarian investors.

Sentiment indicators across crypto social media show that pessimism currently overwhelmingly outweighs optimism. Santiment analyzed that such public distrust and fear can instead form a healthy foundation for sustainable price recovery. Markets tend to move contrary to popular expectations, and depressed sentiment like the current level can provide strong momentum when prices rebound.

Looking at the past seven days of returns, PIPPIN surged 243.17% among the top 100 cryptocurrencies by market capitalization, posting an exceptional performance. It was followed by Official Trump (TRUMP) with a 1.37% gain and Shiba Inu (SHIB) with a 1.11% increase, showing modest rebounds. In previous bull markets, Bitcoin (BTC) broke all-time highs before capital rotated into Ethereum (ETH) and other altcoins. However, as the market matures, this cycle is expected to produce a differentiated rally in which only select assets rise.

Experts warn that the next altcoin season may differ from the past, when nearly all tokens rose together. Santiment founder Maksim Balashevich noted that extreme fear on social media could instead act as a powerful catalyst for Bitcoin and major assets. The point at which the crowd exits and pain peaks may very well mark the beginning of a strong rebound.

In conclusion, the slump in the memecoin market is interpreted not as permanent collapse but as a consolidation phase ahead of a new upward cycle. Rather than being swayed by immediate declines and negative sentiment, investors should pay attention to contrarian indicators highlighted by data. Closely monitoring liquidity shifts across the broader crypto market and changes in social media sentiment, while selectively identifying fundamentally strong assets with high technical rebound potential, is crucial at this juncture.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.