2026-01-04 04:24:36

Yesterday's market action was quite intense. PEPE surged straight up by 15%, PENGU followed with a 20% spike, and even the relatively low-profile NEIRO quietly increased by 12%. The collective frenzy of these meme coins definitely has some underlying drivers.

Some might complain: "Aren't meme coins just hype based on jokes? They rise quickly and fall just as fast. What's the point of paying attention to them?" At first glance, that seems reasonable, but after years in the crypto market, you'll notice an interesting phenomenon—the first signal of a bull market always starts with meme coins "blowing up." This is no coincidence; there is a complete logic involving capital, sentiment, and market cycles behind it.

Let's start with the first point: meme coins are a "barometer of capital risk appetite return." In the early stages of a bull market, the market is just emerging from a downturn, and most capital remains on the sidelines, hesitant to pour directly into large-cap mainstream coins. That makes sense—mainstream coins have large market caps, and moving the market requires massive capital.

Meme coins are different. With small market caps and concentrated circulating supply, a small amount of capital can generate astonishing gains. Plus, these coins come with inherent topics and community support. Once they start to surge, market attention skyrockets. Yesterday, PEPE's 24-hour trading volume suddenly tripled, and PENGU's community discussion volume surged by 500%. What does this indicate? It shows that long-dormant incremental capital is really starting to enter the market, and they are testing the waters through meme coins, which serve as a "risk buffer zone."

PEPE-6,2%

PENGU-7,85%

NEIRO-7,4%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

17 Likes

Reward
17
4
Repost
Share

Comment

0/400

LiquidatedAgain

· 01-04 04:47

Here we go again, another wave of being cut by meme coins... Yesterday I didn't buy the dip in PEPE but instead went all-in on PENGU at a high level. Reading this article now, I really wish I had known earlier. With such a high lending rate, still daring to pour in? My 3x leverage was forcibly liquidated at a 15% gain, losing heavily... That said, it does seem like risk appetite is warming up. I'm just worried about jumping in with the trend and becoming a bagholder. Better to wait until the risk control levels are set. Really? This can be called a bull market signal? I feel like this is just the market maker testing the waters... Waiting to see the liquidation price drop.

View OriginalReply0

NFTArchaeologis

· 01-04 04:38

The recent surge in meme coin collaborations... seems more like a collective awakening of certain cultural symbols. It reminds me of the early days of CryptoPunks—things that seem nonsensical but can actually reflect the true market sentiment. The metaphor of a litmus test for dormant funds is quite fitting, but we also need to be cautious, as many "artifact-level" projects in history ultimately became speculative traps. On-chain data will tell the truth.

View OriginalReply0

ProtocolRebel

· 01-04 04:27

The bull market signal is really here, meme coins are always the first to take the plunge, this time I didn't get it wrong --- PEPE 15% PENGU 20%, lying low for so long and finally showing some warmth --- Funds are testing the waters, starting with meme coins. I understand this logic—small caps are the testing ground for liquidity --- Here we go again, every time the market starts, meme coins get excited first. The pattern is really consistent --- Trading volume tripled—this kind of signal can't be fooled. Large funds are indeed quietly entering the market --- Laugh out loud, those who said meme coins are trash should reflect now. This is the market's thermometer --- NEIRO is also rising? Even the low-key ones can't sit still anymore. There’s definitely something driving this --- The concept of a risk buffer zone is interesting; small-cap coins are indeed more susceptible to capital amplification --- Same old narrative, but this time the trading data is really intense --- The sign of incremental funds entering the market is too obvious. The community's enthusiasm is explosive and can't be faked

View OriginalReply0

GamefiHarvester

· 01-04 04:26

Haha, this wave is really something, no wonder I couldn't sleep last night and kept watching the market. I almost got cut during the PEPE surge, but luckily I didn't go all in. This logic really moved me; meme coins are like the thermometer of the market. So should I get on now, or wait a bit longer?

View OriginalReply0