Across both assets, charts showed sustained upward pressure supported by rising volume. SHIB followed a smoother intraday path, while DOGE displayed a sharper breakout and consolidation pattern. The price action unfolded as broader markets showed uncertainty. According to Benzinga, equity markets remained caught between breakout and breakdown scenarios, with volatility poised to rise.
Memecoin traders also tracked sector-wide recovery signs. Bulls entered the new year after a difficult 2025, when total memecoin market capitalization fell 60%, dropping from $94.92 billion to $37.79 billion. Most tokens erased earlier gains. Only the official Trump TRUMP token and a few smaller projects avoided heavy losses during the downturn.
Recent price strength lifted total memecoin market capitalization to a two-week high of $39.45 billion on Friday. The move coincided with renewed social and derivative activity. Ethereum cofounder Vitalik Buterin changed his profile picture to a meme NFT during the same period, drawing attention across the sector.
Derivatives data have also revealed an increase in participation. Over the course of a day, the PEPE open interest surged by as much as 77%, reaching $441 million, indicating greater futures positioning. Open interest is a metric that reflects the number of outstanding derivative contracts. There is always a counterparty for every futures position; that is why the increasing OI is associated with the rising leveraged exposure. When prices retrace and OI increases, the question is whether the revival of memecoin liquidity indicates a permanent change or just another short-lived rotation.
Also Read: What Caused the Altcoin Decline in 2025? Truth Revealed