Pepe has recorded a sharp surge in early 2026, gaining more than 60% over the past week and drawing renewed attention to competition within the meme coin sector. The move has prompted fresh discussion among market commentators about whether shifting investor interest could alter the long-standing ranking dominated by memecoins Dogecoin and Shiba Inu.

$PEPE is up 65% since January 1, 2026.

Many other OG memecoins have seen strong 20% – 40% pumps in the last few days.

Is the market trying to tell us something? pic.twitter.com/MVVYQm269G

— Jeremy (@Jeremybtc) January 5, 2026

The rally comes amid a broader rebound in speculative crypto assets, with meme coins outperforming several large-cap digital assets during the same period. Market participants are closely watching whether the recent momentum reflects short-term trading activity or a deeper rotation within the sector.

Diverging Performance Across Meme Coins

According to market data cited by pseudonymous analyst Y00thereum, Pepe’s recent gains have outpaced those of Shiba Inu, which rose approximately 22% over the same timeframe. The analyst pointed to this divergence as evidence of stronger speculative demand flowing into newer meme tokens as overall risk appetite improves.

At the time of analysis, Shiba Inu’s market capitalization stood at roughly $5.49 billion, compared with Pepe’s valuation near $2.87 billion. Updated pricing places Shiba Inu trading around $0.00000931, while Pepe changes hands near $0.00000684. These figures illustrate the scale of the gap that would need to close for any change in rankings to occur, though no consensus exists on whether such a shift is likely.

$PEPE will flip $SHIB by April 20, if not much earlier pic.twitter.com/kPhJSb8kOE

— y00thereum (@y00thereum) January 4, 2026

Historical Context of Meme Coin Competition

Speculation about a potential reshuffling among meme coins is not new. In 2024, since Bitcoin CEO Max Schwartzman suggested that Pepe and Shiba Inu could emerge as the dominant “alpha” and “beta” meme assets during the 2024–2025 cycle. That outcome did not materialize, as Shiba Inu retained its position despite intermittent volatility.

Here is some crazy alpha for you guys… I'm intentionally posting it on the weekend so only the hardest workers who are addicted to this game see it.

I talk all the time about beta & alpha. The relationship between them is the secret sauce in crypto.

Last cycle when $SHIB… pic.twitter.com/Z4dC3HY2rG

— Max (@MaxBecauseBTC) November 23, 2024

Similarly, prominent Pepe advocate Pepetoshi Nakamoto previously argued that Shiba Inu’s second-place ranking was at risk, citing narrowing valuation differences at the time. Those forecasts also failed to translate into a lasting change in market structure.

Shiba Inu has largely maintained its status as the second-largest meme coin by market capitalization since late 2021. The only notable exception occurred briefly in early 2025, when the TRUMP meme coin overtook it during an initial launch surge before Shiba Inu reclaimed the position.

Broader Implications for the Meme Coin Sector

The renewed discussion highlights how sentiment-driven assets can experience rapid shifts in attention during periods of heightened market activity. Meme coins remain particularly sensitive to speculative flows, social media narratives, and broader crypto market conditions.

While Pepe’s recent performance underscores the sector’s volatility, longer-term rankings have historically proven resilient. For investors and builders, the episode serves as a reminder that short-term price movements do not necessarily translate into structural changes within the digital asset ecosystem.

Maxi Doge: Already Raised $4.4M in Presale

As Pepe continues to trade as one of the strongest high-beta meme coins during risk-on phases, traders are increasingly scanning the market for the next momentum-driven opportunity. Maxi Doge ($MAXI) is beginning to attract attention as an early-stage meme project built around aggressive trading culture and speculative upside.

Presale data suggests momentum is already building. At the time of writing, Maxi Doge has raised around $4.4 million out of a $4.7 million target, putting the project close to its next pricing tier. With meme-driven branding, community-led engagement, and a marketing strategy designed to amplify visibility post-launch, $MAXI is positioning itself as a potential rotation play for traders who previously chased explosive moves in assets like PEPE.