PEPE Surges 32% to Lead Meme Coin Rally as Altcoins Rebound in Early 2026

PEPE emerged as the clear leader of the meme coin market on Friday, surging more than 32% as altcoins broadly outperformed in a post-holiday rally that injected fresh optimism into crypto markets. The frog-themed token, now carrying a market capitalization of roughly $2.5 billion, topped gains among meme assets and became one of the strongest performers across the entire digital asset sector.

The rally extended beyond PEPE, with cat-themed meme coins POPCAT and MOG each climbing close to 20%. Other established meme tokens followed suit, as FLOKI, Dogwifhat, and Fartcoin all posted double-digit gains. Dogecoin rose approximately 12%, while Shiba Inu and BONK advanced around 13%, highlighting a broad-based resurgence in speculative assets.

According to VanEck Head of Research Matt Sigel, this type of January rebound is historically common, particularly among assets that underperformed toward the end of the previous year. Smaller and less liquid tokens, which often suffer the most during risk-off periods, tend to experience sharper recoveries early in the year as traders reposition for potential upside.

Data from Nansen supports this view. Senior research analyst Jake Kennis explained that meme coins endured some of the steepest losses following the October 10 liquidation event, with downside volatility hitting the sector harder than most others. Large-cap meme assets were not spared, as PEPE and Dogecoin fell nearly 80% from their all-time highs, underscoring the depth of last year’s drawdown.

The renewed strength in early 2026 suggests a rotation back into large-cap meme coins after months of consolidation. Kennis noted that traders appear to be positioning for a recovery, though he cautioned that sustained momentum will require confirmation across higher timeframes before a full trend reversal can be established.

The broader context adds further intrigue. Crypto markets significantly underperformed throughout 2025 despite a series of bullish tailwinds, including U.S. President Donald Trump’s increasingly pro-Bitcoin stance, improving regulatory clarity, the rise of corporate digital asset treasuries, and continued success of crypto-related exchange-traded funds. Even so, the sector lagged behind traditional assets such as the S&P 500 and gold for much of the year.

Unchained’s Director of Market Research, Timot Lamarre, pointed out that capital typically destined for Bitcoin found alternative paths in 2025. Risk-seeking investors gravitated toward Bitcoin treasury companies and artificial intelligence-focused sectors, while capital seeking protection from currency debasement continued flowing into precious metals.

AI-related tokens were among the strongest performers during the rebound. ElizaOS surged more than 50%, while Render, Virtuals, and Bittensor posted gains ranging between 8% and 13%. Goatseus Maximus also climbed over 12%, reflecting renewed interest in speculative technology-driven narratives.

Elsewhere in the altcoin market, tokens linked to newly launched protocols posted notable gains. Monad’s MON rose more than 15%, while Plasma’s XPL advanced over 13%, signaling that fresh ecosystem launches continue to attract trader attention.

Major cryptocurrencies also moved higher, though at a more measured pace. Bitcoin gained 2.4%, Ethereum climbed 4.5%, and Solana advanced 4.9%. Crypto mining stocks followed the positive momentum, with Cleanspark, IREN, and Riot each rising more than 11%. Treasury-focused firms such as Semler Scientific and BitMine also posted double-digit gains.

Sigel highlighted that historical data shows a strong correlation between positive January performance and higher average returns over the following eleven months. While risks remain and confirmation is still needed, the early-year strength across meme coins and altcoins has reignited speculation that 2026 could mark a turning point for the broader crypto market.