Memecoins
‘Memecoin, artificial intelligence will dominate’: is the cryptocurrency market changing?
- Memecoin and AI tokens recorded a strong recovery at the beginning of the week.
- But memecoins maintained dominance during the recovery, with PEPE and WIF at the top.
After the bloody meltdown of the last few days, the market recovered on Monday, with memecoins and AI tokens leading the recovery.
Among Tuesday’s biggest gainers were Dogwifhat [WIF] AND Going to take [FET]. They posted double-digit earnings as Bitcoin [BTC] it recovered the $60,000 level.
Reacting to the recovery, market observer Bluntz Capital noticed,
“In my opinion, memes and AI will continue to be the two main narratives. Choose your fighters wisely.
Will memecoins regain dominance?
The recovery extended Wednesday and memecoins according to CoinMarketCap it still dominated the top gainers data. Pepper [PEPE] AND Brett [BRETT] have increased by 12% and 18% respectively in the last 24 hours.
However, last week, CryptoQuant founder Ki Young Ju established that memecoin’s dominance in the altcoin market had declined. Based on this data point, Ju said he is “bearish” on memes but long on BTC.
Indeed, the recent market rout has decimated the alternative market, with memes like WIF down more than 48%.
Despite posting gains of 15% and 11% on June 24 and 25 and hitting $2, WIF market prejudice was still bearish, especially on the higher time frame charts.
However, some memes like PEPE have shifted to a bullish bias and may extend the rally.
PEPE settled above its short-term trend, the 50-day EMA (exponential moving average), and recorded a daily close above the lower low of $0.000012.
Source: PEPE/USDT, TradingView
To further evaluate Bluntz Capital’s assumptions, AMBCrypto analyzed Open Interest (OI) rates, which track liquidity flows in derivatives markets.
Over the past 24 hours, memes came in second with 7.5% based on Coinglass OI data, indicating that greater market liquidity has flowed into the segment. However, the AI segment came in at position 17.
Across the memes segment, PEPPER, Dogecoin [DOGE]and WIF recorded the highest positive OI, indicating that the market has been excessively bullish on these three over the past 24 hours.
However, another market observer, Alex Kruger, saw memecoins as a “joke“This only benefits the insiders.
That said, despite the decline in altcoin dominance, the meme segment still saw notable traction relative to the rest of the market over the past 24 hours.