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Investors Turn Their Backs on Meme Cryptocurrencies – An Analysis of the Trend

2 min read
Traders Are Abandoning Meme Coins – What'S Happening?

8h26 ▪
min read ▪ by
Eddy S.

The landscape of altcoins has seen a marked decrease in the influence of crypto memes since April 2024. This could indicate that traders are transitioning from speculative bets toward a more fundamental analysis of their investments.

Crypto Memecoins

The Fall of Memecoins: A Shift to Fundamental Investment?

CryptoQuant’s data has recorded a sustained dip in memecoin dominance from September 2022, witnessing a stark fall below 0.03 in May 2024. This evolving trend points towards foundational investment strategies reminiscent of previous market cycles.

Despite lower dominance, memecoin liquidity has surged, doubling since the year’s start and hitting a record of $128 million in June. These figures reflect an intricate change in market sentiment, notwithstanding the recent downturns and subsequent extensive selloffs.

Memecoins such as Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) have seen surges in liquidity from 200% up to 4000% in their native currencies. Yet, the global crypto market cap has retracted beneath the $2.4 trillion mark, with memecoins dropping to a valuation of $49.9 billion, as seen in these data points.

A New Era for the Crypto Market?

We may be witnessing the crypto market’s growing maturity, as investors gravitate towards assets with substantial fundamentals, practical utility, and robust market presence. Noteworthy 2024 happenings, such as the memecoin surge on the Solana (SOL) platform and a rise in institutional engagement, could be catalyzing this current shift.

The diminishing role of memecoins might signify the crypto market’s evolution, where foundational analysis overtakes speculation. This transition might herald a new chapter of enduring and economically robust asset growth.

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The opinions expressed herein are exclusively those of the author and should not be construed as investment advice. Perform your due diligence before making any investment decisions.

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