Memecoins caught a bid on Tuesday, extending what's shaping up to be a surprisingly strong start to 2026. The entire category rode the broader cryptocurrency market rally, with some of the usual suspects posting double-digit gains.

Frogs and Dogs Having Their Day

Frog-themed Pepe stole the show, lifting over 18% and claiming the top spot among large-cap gainers. The Ethereum (ETH)-based memecoin has now rallied nearly 70% since the beginning of the year, which is the kind of performance that makes people either very happy or very regretful, depending on their timing.

Solana (SOL)-based Bonk wasn't far behind, posting a 14% uptick that stretched its year-to-date returns beyond 56%. Not bad for a token named after the sound a cartoon character makes when hitting their head.

Dogecoin (DOGE), the world's largest memecoin and the OG of the category, rallied over 8% in the last 24 hours. Shiba Inu (SHIB) lifted 5.80%. Both heavyweights are now sitting on gains of more than 25% year to date.

The total memecoin market capitalization expanded 8.19% in the last 24 hours to $47 billion. Those are levels we haven't seen in two months, which tells you how volatile this corner of the market has been.

What's Behind the Rally?

The surge came after the Senate Banking Committee released a draft bill for cryptocurrency market structure legislation. The bill would treat altcoins the same way regulators currently treat Bitcoin (BTC) as commodities, not securities. That's potentially huge news for the crypto market, removing a layer of regulatory uncertainty that's been hanging over these assets.

After getting absolutely hammered in 2025, memecoin bulls are crossing their fingers that this rally actually has some staying power. Last year was rough. The total memecoin capitalization collapsed from $94.92 billion to $37.79 billion, marking a 60% decline. That's the kind of drawdown that separates believers from tourists.

Whether this momentum continues or fizzles out like so many memecoin rallies before it remains to be seen. But for now, the frogs and dogs are having their moment in the sun again.