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Crypto: Traders Are Abandoning Meme Coins – What's Happening?

Mon 24 Jun 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Crypto regulation

Since April 2024, the dominance of crypto memes in the altcoin market has significantly decreased! Signaling a potential shift in trader strategies, who might turn away from speculative trading to focus on fundamentals.

Crypto memecoins

Memecoins are collapsing! Is it time to invest in fundamentals?

Data from CryptoQuant reveals a steady decline in the dominance of memecoins since September 2022, with a significant drop 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, the liquidity of memecoins has doubled since the beginning of the year. Reaching a historical peak of 128 million dollars in June. This indicates a complex evolution of the crypto market sentiment, despite recent corrections and massive sell-offs that followed.

Memecoins like Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) have experienced liquidity growth ranging from 200% to 4000% in native units. However, the overall crypto market capitalization has fallen below 2.4 trillion dollars, with a notable decline for memecoins to 49.9 billion dollars.

Is the crypto market moving to a new stage?

This transition could reflect a growing maturity of the crypto market. Investors would seek 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 decrease in the dominance of memecoins could be an indicator of an evolving crypto market, where speculation gives way to a 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 of growth supported by more stable and economically sound assets.

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Eddy S. avatar
Eddy S.

The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.