Memecoins
Traders Are Abandoning Meme Coins: What’s Happening?
8.26am ▪ 3 minute read ▪ by Eddy S.
Since April 2024, the dominance of crypto memes in the altcoin market has significantly decreased! Signaling a potential change in traders’ strategies, who may abandon 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 drop below 0.03 in May 2024. This trend suggests a shift towards a more fundamental approach to cryptocurrency investing! Similar to what was observed a few years ago.
Despite the decline in dominance, memecoin liquidity has doubled since the beginning of the year. Reaching an all-time high of $128 million in June. This indicates a complex evolution in cryptocurrency market sentiment, despite recent corrections and the massive sell-offs that followed.
Memecoins such as Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) have seen liquidity growth ranging from 200% to 4000% in native units. However, the overall cryptocurrency market capitalization has fallen below $2.4 trillion a notable drop for memecoins to $49.9 billion.
Is the cryptocurrency market moving into a new phase?
This transition may reflect a growing maturity of the cryptocurrency market. Investors would look for assets with strong fundamentals, real utility and significant market capitalization. Noteworthy events in 2024, such as the Solana (SOL) memecoin frenzy and growing institutional interest, could also play a role in this market dynamic.
The declining dominance of memecoins could be an indicator of an evolving cryptocurrency market, where speculation gives way to more rigorous fundamental analysis. This could mark the end of an era of meme-based trading pave the way for a new phase of growth supported by more stable and economically solid assets.
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Eddy S.
The world has evolved and adaptation is the best weapon to survive in this wavering universe. The crypto community manager at the base interests me in everything that touches or comes close to the blockchain and its derivatives. With a view to sharing my experience and getting to know a domain that I am passionate about, I am the one who writes informative and décontractés a la fois articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.