Key Takeaways:
The first week of 2026 opened with strong gains in meme coins, led by a roughly 70% surge in PEPE, alongside BONK, FLOKI, PENGU, SHIB, and other large-cap meme tokens.
Meme coins clearly outperformed most other crypto sectors, including AI tokens.
The rally can be interpreted in different ways, either as an early sign of market recovery or as a volatile move driven by positioning and liquidity dynamics.
Geopolitical events and news-driven narratives played a visible role. Thematic tokens like MADURO and FAFO posted sharp gains as attention rose.
Despite optimism around a potential Q1 rebound, the market remains highly volatile, and meme coins continue to carry elevated risk.
The first trading week of 2026 started on the side of the bulls. Among crypto assets, meme coins and AI tokens are showing the strongest gains.
Meme coins dominate the list of top performers. Pepe (PEPE) is up roughly 70% over the past seven days. It is followed by Bonk (BONK), FLOKI (FLOKI), Pudgy Penguins (PENGU), SPX6900 (SPX), and Shiba Inu (SHIB). All of them have entered the top 15 performers.
AI tokens are also present on the list. Still, meme coins have clearly taken the spotlight. The Pump.Fun token (PUMP) has also shown gains.
This price action raises several questions. For some investors, it may spark hopes of a broader market recovery. Crypto assets are volatile by nature. Meme coins sit at the very top of that volatility spectrum.
At the same time, these moves can be interpreted in different ways. The rally may reflect renewed risk appetite. But it could also suggest that market makers are pushing traders into long positions ahead of another potential drop.
Source: CoinMarketCap
Why Are Meme Coins Rising?
The strongest gains are coming from meme coins within the Solana and Ethereum ecosystems. As paradoxical as it may sound, periods of instability often work in favor of meme coins. This does not happen every time, but certain patterns tend to repeat.
For meme coins, trading volume is the key driver. Their relatively low prices allow them to rally quickly. At the same time, they can fall just as fast. Geopolitical developments have also played a role. For example, against the backdrop of events in Venezuela, activity in the meme coin market increased. And, as is often the case, thematic tokens quickly appeared.
One example is the MADURO token. Its market capitalization climbed to nearly $2 million. Many of these tokens usually migrate from around $60,000 in market cap. Based on that, this move represents a growth of roughly 3,200%.
Source: DEXScreener
Another notable case is the FAFO token. The token takes its name from the acronym “FAFO,” which stands for “f**k around and find out.” The phrase gained attention online following recent events in Venezuela and was later echoed in a post by the White House, which further amplified its visibility.
Although the FAFO token was launched almost a year ago, it only gained traction in January 2026. As the narrative spread, its market capitalization rose to around $3 million.
It is also worth noting that toward the end of December and into the first week of 2026, meme coins from the Bonk ecosystem began to rally more actively. These tokens are usually traded in pairs with USD1. This added extra liquidity to the market.
Meme coins tend to spread liquidity across many highly speculative assets. Even so, this still has a positive effect on the broader ecosystem. In particular, it supports Solana’s revenues. Solana remains the main blockchain for launching so-called “casino coins,” and meme-driven activity continues to reinforce its role as core infrastructure.
PEPE and the Broader Market
It’s not just smaller or newly launched tokens that are moving. Some of the bigger and more established meme coins have started to rise as well. These include well-known names like PEPE, BONK, FLOKI, SHIB, and PENGU. This group is often seen as the “classic” side of the meme coin market. Some traders even joke that PEPE works as a broad market indicator. And recent price action gives that idea some weight.
As the chart shows, PEPE started to rise sharply on Jan. 1. After a brief pullback, the move continued. On Sunday, Jan. 3, at around 8:00 UTC, PEPE began climbing again.
Bitcoin followed shortly after, posting gains on Monday, Jan. 4.
Matas Čepulis, Founder and CEO of LuvKaizen, told Cryptonews that meme coins could be getting a second wind, provided Bitcoin remains strong:
Meme coins are coming back. Q1, historically speaking, is a very good month. I expect some uptrends considering the global situation with the US, Venezuela, oil, rate cuts, and more. If BTC keeps its uptrend, we will see another strong run in meme coins. NFTs are also coming back, and some projects may launch meme tokens as well. The season is off to a good start.
At the same time, it’s worth keeping the risks in mind. The market remains highly volatile, and uncertainty is still high. While some experts expect more green candles in 2026, caution is especially important when it comes to meme coins.
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