Memecoins
Traders Abandon Meme Coins – What’s Happening?
8:26 a.m. ▪ 3 min read ▪ by Eddy S.
Since April 2024, the dominance of crypto memes in the altcoin market has decreased significantly! Signaling a potential shift in traders’ strategies, who may shift away from speculative trading to focus on fundamentals.
Memecoins are collapsing! Is it time to invest in fundamentals?
Data from CryptoQuant reveals a steady decline in memecoin dominance since September 2022, with a significant decline below 0.03 in May 2024. This trend suggests a shift towards a more fundamental approach to crypto investments! Similar to what was observed a few years ago.
Despite the decrease in dominance, memecoin liquidity has doubled since the start of the year. Reaching an all-time high of $128 million in June. This indicates a complex shift in crypto market sentiment, despite recent corrections and subsequent sell-offs.
Memecoins like Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) have seen liquidity growth ranging from 200% to 4,000% in native units. However, the overall crypto market cap has fallen below $2.4 trillion, with a notable drop for memecoins at $49.9 billion.
Is the crypto market entering a new stage?
This transition could reflect an increasing maturity of the cryptocurrency market. Investors would look for assets with strong fundamentals, real utility and significant market capitalization. Notable events of 2024, such as the memecoin frenzy on Solana (SOL) and increased institutional interest, could also play a role in this market dynamic.
The diminishing dominance of memecoins could be an indicator of an evolving crypto market, where speculation is giving way to more rigorous analysis of fundamentals. This could mark the end of an era of meme-based trading and pave the way for a new phase growth supported by more stable and economically sound assets.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.