Crypto Markets Bounce Back After Holiday Lull, Memecoins Lead the Rally
January 2, 2026 – 09:30 GMT
After two relatively quiet weeks over the holiday period, risk sentiment in the digital‑asset arena revived on Friday, lifting most major cryptocurrencies. The rebound was especially pronounced among meme‑coins, which outperformed the broader market.
Price Action Across the Top Ten
| Asset | 24‑hour change | Approx. price (USD) |
|---|---|---|
| Bitcoin (BTC) | +2.2 % | $89,900 (peaked at $90,788) |
| Ethereum (ETH) | +4.4 % | $3,120 |
| BNB | +3 % | — |
| XRP | +6 % | — |
| Solana (SOL) | +5 % | — |
| Dogecoin (DOGE) | +11 % | — |
| Pepe (PEPE) | +30 % | — |
| Ethena (ENA) | +11 % | — |
| Zcash (ZEC) | –6.6 % | — |
| Filecoin (FIL) | –3.4 % | — |
All figures are sourced from The Defiant’s price tracker and CoinGecko. Bitcoin’s move back above the $89,000 mark and Ethereum’s gain to just over $3,100 lifted the overall market, which saw its total capitalization climb to $3.15 trillion—a 2.8 % increase in a single day. Trading volume topped $125 billion, indicating renewed investor activity.
Bitcoin’s market share settled at 57 %, while Ethereum accounted for 11.9 % of the market, consistent with the recent re‑balancing between the two leading assets.
Memecoins Steal the Spotlight
Meme‑tokens posted the strongest daily gains, with Pepe (PEPE) soaring roughly 30 % and Dogecoin (DOGE) gaining about 11 %. Ethena (ENA) also posted double‑digit growth. The surge came after a broader alt‑coin slump throughout 2025, during which many previously dominant projects slipped into the red on the yearly chart.
Why the meme‑coin rally?
- Renewed risk appetite – The post‑holiday period often sees capital flowing back into higher‑volatility assets.
- Social‑media momentum – Community‑driven promotion on platforms such as X and Discord can trigger rapid price spikes.
- Short‑covering dynamics – The day’s price bounce forced the liquidation of sizeable short positions on meme‑coins, amplifying upward pressure.
Privacy Coins Slide
Contrasting the meme‑coin rally, privacy‑focused assets softened. Zcash (ZEC) dropped more than 6 % and Filecoin (FIL) fell around 3 %. Although Zcash had been the top large‑cap performer of 2025, the current pull‑back suggests that the privacy‑coin resurgence may be losing steam as investors gravitate toward higher‑beta tokens.
Liquidations & ETF Flows
The market rally triggered a wave of short‑position liquidations estimated at $390 million in the last 24 hours, according to Coinglass data.
- Shorts liquidated: ≈ $325 million
- Longs liquidated: ≈ $66 million
Bitcoin and Ethereum accounted for the bulk of these closures, with roughly $120 million and $126 million respectively. Meme‑coins also featured among the liquidated shorts, most notably DOGE and PEPE, underscoring the rapid swing in sentiment.
In the ETF arena, the day saw net outflows from Bitcoin and Ethereum products—$348 million and $72 million respectively—while niche ETFs linked to XRP and Solana attracted modest inflows of $5.6 million and $2.2 million. The divergent flows hint at a reallocation toward assets perceived as offering higher upside in the short term.
Macro Context
- Commodities: Safe‑haven metals edged higher. Gold traded at $4,338 per ounce (+0.05 %), silver at $72.80 (+0.66 %), and platinum posted a more notable gain of 3.6 % to $2,141 per ounce.
- Geopolitics: U.S. President Donald Trump warned of possible intervention if Iranian forces used lethal force against protestors, adding a layer of geopolitical risk. The Ukraine‑Russia conflict also resurfaced in headlines after Russian officials reported an increased death toll from a drone strike in occupied Kherson, while Kyiv denied targeting civilians.
Both developments have traditionally bolstered demand for safe‑haven assets, yet the crypto market’s resilience suggests that risk‑on capital is re‑entering the sector despite broader uncertainties.
Key Takeaways
- Broad market recovery: Bitcoin and Ethereum led a 2‑5 % uplift across the majority of top‑10 tokens, pushing total crypto market cap above $3 trillion.
- Meme‑coins outpace: PEPE and DOGE posted the steepest single‑day gains, driven by renewed risk appetite, social‑media hype, and short‑covering pressure.
- Privacy‑coin pullback: ZEC and other privacy assets lagged, indicating a temporary shift away from the privacy‑coin rally that defined 2025.
- Short‑position squeeze: Over $390 million in shorts were liquidated, with BTC and ETH absorbing the majority of the unwind.
- ETF reallocation: While flagship Bitcoin and Ethereum ETFs saw sizeable outflows, niche XRP and SOL funds attracted fresh capital, reflecting a search for higher‑beta exposure.
- External factors: Modest gains in precious metals and ongoing geopolitical tensions provide a backdrop of uncertainty, but the crypto market appears to be regaining momentum as investors re‑enter after the holiday pause.
The next few days will be crucial for confirming whether the meme‑coin surge is a short‑term flash rally or the start of a broader alt‑coin revival. Market participants will be watching liquidity, on‑chain activity, and any further macro‑economic cues to gauge the durability of the current upside.
Source: https://thedefiant.io/news/markets/crypto-markets-move-higher-after-holidays-memecoins-outperform
