Memecoins
Nansen Analyst Predicts These Crypto Coins Will Outperform Meme Coins During Market Rebound
Aurélie Barthere, principal analyst at on-chain analytics firm Nansen, shared a recent market prediction for crypto assets. Barthere believes that major cryptocurrencies like Bitcoin, Ethereum, and Solana could potentially outperform meme coins as the market recovers.
This projection is based on a comprehensive analysis of various factors including on-chain data, Stablecoin market capitalization, fee analysis, and overall ecosystem growth indicators.
Risk Sentiments and Crypto Market Trajectory
According to According to Barthere, recent cryptocurrency sales have reduced risk sentiment among traders. This led to a pronounced negative distortion of the distribution of returns.
This change in sentiment has caused investors to become more risk averse, potentially favoring larger, established companies. cryptocurrencies on riskier assets like meme coins.
“Our analysis suggests that the recent crypto sell-off has reduced traders’ risk sentiment, leading to a notable negative twist in the distribution of returns,” Nansen said.
Barthere emphasized: “As the market recovers, we expect a more moderate trajectory, potentially centered around major tokens. » The analyst’s prediction is further supported by technical price patterns which indicate that cryptocurrency prices are oscillating between consolidation and further correction.
This market volatility has been influenced by a variety of factors, including strong earnings reports from tech giants like Alphabet and Microsoft. These reports exceeded expectations, particularly in the area of artificial intelligence (AI) and cloud services.
“Nansen”“Weekly Search” report, released on April 28, revealed sustained growth in the crypto ecosystem. The spike in cross-chain fees aligned with crypto price action confirms this.
This increase in cross-chain activity suggests increased adoption and usage of decentralized applications and protocols (dApps) across various blockchain networks.
A key indicator of this growth is the higher market capitalization of Stablecoin, signifying increased liquidity and demand for stable digital assets in the crypto space.
Stablecoins play a crucial role in facilitating transactions, lending, and commercial activities, and their market capitalization growth reflects the expansion of the ecosystem.
Cross-chain fees and blockchain performance
Cross-chain fees peaked in March, coinciding with cryptocurrency price action. This trend highlights the increased interoperability and interconnectivity between different blockchain networks.
This allows users to seamlessly transfer assets and operate various protocols across multiple ecosystems. Within this ecosystem, Solana (SOL) has preserved its paid market share, reflecting sustained usage and activity across its network.
Meanwhile, Base has become a serious competitor, gaining traction and attracting users to its platform. However, Arbitrum, a major Ethereum Layer 2 scaling solution, has seen its fee market share decline.
This could be attributed to various factors, such as network congestion, changing user preferences, or the emergence of competing solutions.
Although the recent Renzo Restaked ETH depeg did not have a significant impact on the price of other staked tokens, Nansen analysts are monitoring the market for significant deleveraging.
Excessive leverage can amplify market movements and increase systemic risk, which could lead to cascading liquidations and possible contagion effects.
As such, the leverage level of these staked token protocols is closely monitored to assess potential risks and vulnerabilities. Besides on-chain data and ecosystem growth indicators, external factors also influence market sentiment.
Strong income reports tech giants like Alphabet and Microsoft have exceeded expectations. This is particularly evident in artificial intelligence (AI) and cloud services, which provided a positive boost to overall market sentiment.
These encouraging results from major technology players could potentially boost investor confidence and contribute to a more favorable market environment. This could potentially benefit established cryptocurrencies like BTC, ETH, and SOL.
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