Memecoins
Nansen analyst predicts these cryptocurrencies will outperform meme coins during market recovery
Aurelie Barthere, the principal analyst at on-chain analytics firm Nansen, shared a recent market prediction for crypto assets. Barthere believes that major cryptocurrencies such as 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 appetite sentiments and cryptocurrency market trajectory
Second For Barthere, recent cryptocurrency sell-offs have reduced risk appetite among traders. This led to a pronounced negative turn in the distribution of returns.
This shift in sentiment has led investors to become more risk averse, potentially favoring the established majors cryptocurrencies compared to riskier assets such as meme coins.
“Our analysis suggests that the recent crypto sell-off has reduced risk appetite among traders, leading to a notable negative turn in the distribution of returns,” Nansen said.
Barthere highlighted: “As the market recovers, we expect a more subdued trajectory, potentially centered around core tokens.” The analyst’s prediction is further supported by technical price models indicating that cryptocurrency prices are fluctuating between consolidation and further correction.
This market volatility has been influenced by various factors, including strong earnings reports from tech giants like Alphabet and Microsoft. These reports have exceeded expectations, particularly in the field of artificial intelligence (AI) and cloud services.
Nansen”Research Weekly Report”., released on April 28, revealed sustained growth in the crypto ecosystem. The spike in cross-chain fees in line with cryptocurrency price actions 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 increased market capitalization of stablecoins, which means greater liquidity and demand for stable digital assets within the crypto space.
Stablecoins play a crucial role in facilitating transactions, lending and business activities, and the growth in their market capitalization reflects the expanding ecosystem.
Cross-chain Fees and Blockchain Performance
Cross-chain fees reached their peak in March, coinciding with cryptocurrency price movements. This trend highlights the increased interoperability and interconnectivity between different blockchain networks.
This allows users to seamlessly transfer resources and leverage various protocols across multiple ecosystems. Within this ecosystem, Solana (SOL) has preserved its paid market share, indicating sustained usage and activity on its network.
Meanwhile, Base has emerged as a strong competitor, gaining significant popularity and attracting users to its platform. However, Arbitrum, a leading Ethereum Layer 2 scaling solution, has seen a decline in its fee market share.
This could be attributed to various factors, such as network congestion, changing user preferences, or the emergence of competing solutions.
While the recent Renzo Restaked ETH unpegging 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 potential contagion effects.
Therefore, the level of leverage in these token staking protocols is carefully monitored to assess potential risks and vulnerabilities. In addition to on-chain data and ecosystem growth indicators, external factors also influence market sentiment.
Strong earnings reports from tech giants like Alphabet and Microsoft have exceeded expectations. This is especially 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 such as BTC, ETH, and SOL.
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