The total memecoin market capitalization has dropped roughly 34% over the past month as the broader market sold off, but Santiment suggests the slump may not last long.
A reversal in memecoins could come sooner than traders expect, even amid choppy conditions across the broader crypto market, if history is any indication, according to crypto sentiment platform Santiment.
“There is a growing narrative of “nostalgia” regarding memecoins, with many traders treating the sector as if it is permanently dead,” Santiment said in a report published on Friday.
“This collective acceptance of the ‘end of the meme era’ is a classic capitulation signal,” Santiment said, explaining that when a sector of the market is completely written off, it is often the “contrarian time” to start paying attention.
