Altcoin
The dominance of meme coins in the altcoin market is collapsing, latest data reveals
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The dominance of meme coins in the altcoin market has been declining since April, second to the CryptoQuant on-chain data platform. However, according to a recent report from on-chain analytics firm Kaiko.
Ki Young Ju, CEO and founder of CryptoQuant, explained that the decline in meme coin dominance in the altcoin market could be related to investors’ shift from gambling to focusing on fundamentals. “Pack your bags guys, it’s over,” he added.
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.
While this may be related to the price increase of many meme coins, tokens like 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 highlights.
However, meme coins are still the best performing crypto narrative so far in Q1 2024, second to a CoinGecko report. The average price growth of meme coins was 1,313% in the first quarter, far outpacing the real world assets (RWA) sector, which was the second largest in terms of growth and increased by 286% in the same period.
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