Did you keep up with this wave of gains at the start of the year? I have to admit, my predictions for meme coins were way off. I originally thought mainstream coins would take the spotlight, but instead, the market proved me wrong—the explosive growth in the meme sector was completely unexpected.

Here’s the data: Dogecoin rose 23% over the week, Shiba Inu increased by 30.5%, and PEPE, that crazy token, even surged nearly 70%. Compared to Bitcoin and Ethereum’s relatively flat 7 to 9 percent gains, the difference is stark. The total market cap of the meme sector has already soared to around $47.8 billion, with nearly $10 billion added in just one week.

Initially, I thought this was just another round of "dumb money" speculation. But after digging into some data and logic, I realized this cycle is quite different from previous meme hype. I’d like to share my observations over this period.

**Why did meme coins instead seize the opening wave of the year?**

The background is crucial: the fourth quarter of last year was really tough. Market liquidity dried up, negative sentiment was everywhere, and ordinary investors’ risk appetite hit historic lows. Back then, those heavily invested in meme coins must have had some serious guts.

The turning point came around Christmas. Bitcoin was stagnating amid volatility, and mainstream assets lacked clear direction. Idle funds naturally flowed into assets with higher yield elasticity. Simply put, hot money always looks for an exit in the market, and when the main indices lack appeal, it naturally gravitates toward high-risk, high-reward targets.

Another notable change in this cycle is the trend toward compliance. Unlike previous purely speculative hype, more and more meme projects are beginning to focus on fundamentals and ecosystem development…