Crypto: Traders are abandoning memecoins!  What is going on ?

Since April 2024, the dominance of crypto memes in the altcoin market has decreased significantly! Signaling a potential shift in traders' strategies, who may shift away from 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 move towards a more fundamental approach to crypto investments! Similar to what was observed a few years ago.

Despite the decline in dominance, memecoin liquidity has doubled since the start of the year. Reaching an all-time high of $128 million in June. This indicates a complex shift in crypto market sentiment, despite recent corrections and subsequent sell-offs.

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Memecoins like Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) have seen liquidity growth ranging from 200% to 4000% in native units. However, the overall crypto market cap has dropped below $2.4 trillion, with a particular drop for memecoins at $49.9 billion.

The crypto market is moving to a new stage?

This transition could reflect a growing maturity of the crypto market. Investors would look for assets with strong fundamentals, real utility and significant market capitalization. Notable events in 2024, such as the memecoin frenzy on Solana (SOL) and increased institutional interest, could also play a role in this market dynamic.

The decline in memecoin dominance could be an indicator of an evolving crypto market, where speculation gives way to more rigorous analysis of fundamentals. This could mark the end of an era of meme-driven trading and usher in a new phase of growth supported by more stable assets based on sound economic principles.

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