Memecoins
It’s finish? Coins like Shiba Inu (SHIB) and DOGE Eye Dramatic Dominance Drop
Gamza Khanzadaev
The SHIB and PEPE hype is over? Meme Coins Face Major Metric Downside Signals, CryptoQuant CEO
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Ki Young Ju, founder and CEO of CryptoQuant, highlighted an important change in the market. According to Ju, the dominance of meme coins in the altcoin market is diminishing, suggesting a shift from speculative play to a more fundamental approach reminiscent of earlier phases of the market.
This change could mark the end of the meme coin craze that has gripped investors in recent months.
Ju clarified that his bearish stance is specific to meme coins, and not Bitcoin. He remains bullish long-term on BTC, suggesting that while the hype around meme coins may fade, fundamental assets like Bitcoin continue to hold strong investment potential. This distinction is crucial, as it indicates a broader market sentiment that seeks intrinsic value rather than speculative ventures.
It can be argued that meme coins act as leverage plays on their parent chains. For example, tokens such as WIF and BONK are linked to Solana (SOL), while Shiba Inu (SHIB) and PEPE are linked to Ethereum (ETH). These assets often experience volatile price movements that reflect broader market trends, but with amplified effects.
However, capital flows into financial markets generally cause funds to move from less risky assets to more speculative assets. This cycle often leads to inflated valuations of meme coins, followed by large capital withdrawals, causing a market-wide downturn.
The decline in meme coin dominance may signal the maturation of the market, where investors are beginning to prioritize assets with strong fundamentals over high-risk, high-reward plays.
About the Author
Gamza Khanzadaev
Financial analyst, trader and crypto enthusiast.
Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.
He wants to participate in covering economic and financial technology topics, as well as making more people aware of cryptocurrencies and blockchain.