Meme coin dominance in altcoin market plummets, latest data reveals
The dominance of meme coins in the altcoin market has been declining since April, according to on-chain data platform CryptoQuant. Yet, the liquidity in the meme coin market has doubled since the start of the year, according to a recent report by on-chain analysis firm Kaiko.
Ki Young Ju, CEO and founder of CryptoQuant, explained that the decline in the dominance of meme coins in the altcoin market could be related to investors shifting from gambling to focusing on fundamentals. “Pack it up lads, it’s over,” he added.
Image: CryptoQuant
Meanwhile, Kaiko analysts used the 1% market depth metric and concluded that meme coin market liquidity reached an all-time high of $128 million in early June, followed by a slight correction.
Although this can be related to the price increase of many meme coins, tokens such as Dogwifhat (WIF), Memecoin (MEME), or Book of Meme (BOME) have seen significant growth in liquidity in native units, ranging from 200% to 4000%.
“However, the cost of trading these tokens remains high, with bid-ask spreads exceeding 2 basis points on most exchanges,” the report highlighted.
Image: Kaiko
Nevertheless, meme coins is still the crypto narrative with the best performance in Q1 2024 so far, according to a CoinGecko report. The average price growth of meme coins was 1,313% in Q1, heavily outshining the real-world assets (RWA) sector, which was the second-largest by growth and went up 286% in the same period.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Meta (META.US) surged 36% in September: Muse validates AI strategy, market cap targets $2 trillion
Meta's stock is on track to achieve its best monthly performance since July 2013, and is only about a 1% increase away from joining the $2 trillion market cap club.
Consumption stratification intensifies, Costco remains "firmly seated in Diaoyutai"?
Is the market less confident in US Treasury bonds than before?
Up 36% in September! Meta achieves its best monthly performance since 2013, with market value approaching $2 trillion
Since September, Meta's stock price has rebounded significantly. The rapid rise of Muse has reignited market expectations for its AI commercialization. Muse reached 902,000 downloads within six days of launch and is quickly expanding into shopping, travel, and other scenarios. The market is beginning to bet that AI agents could unlock new growth opportunities beyond advertising. However, security and privacy risks, as well as high computing power costs, remain key factors in realizing these expectations.
Crypto prices
More
