In a market that has long been captivated by the rapid growth and often speculative nature of meme coins like Dogecoin (DOGE)Shiba Inu (SHIB) and PEPE, a remarkable change is underway.
According to Ki Young Ju, CEO of CryptoQuant, once-dominant meme coins are witnessing a decline in market influence, potentially signaling a maturing cryptocurrency scene.
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The decline of meme coin dominance
Ki Young Ju’s analysis reveals a significant reduction in the dominance of meme coins within the altcoin sectora trend observed from recent market data.
This change suggests a change in speculative investments towards projects with more substantial fundamentals, similar to previous phases in the development of the crypto market.
“The era of meme coin speculation is ending,” says Ju, emphasizing the return to fundamental analysis as a key factor in investment decisions.
Memecoin’s dominance in alternative markets is waning.
CT would be shifting away from the game to focus on fundamentals, similar to a few years ago.
Pack your bags, boys, it’s over. pic.twitter.com/H5d81mRIJB
-Ki Young Ju (@ki_young_ju) June 19, 2024
This observation is seen as a reflection of a broader movement away from high-risk bets on digital assets. Meanwhile, as meme coins may be experiencing a downturn, Ju maintains a positive outlook on more fundamentally sound assets such as Bitcoin.
The CryptoQuant CEO particularly noted:
Some people misunderstood my tweet. I’m pessimistic about memecoins, not BTC. Long-term bullishness in Bitcoin.
Market response and future prospects
Current market dynamics further illustrate this change. So far, the top meme coins have declined over the past week. Particularly, Dogecoin, Shiba Inu, and PEPE experienced a week-long recession, with drops of 13.1%, 14.1%, and 7.9%, respectively.
This trend has continued over the last 24 hours, with Dogecoin dropping a further 0.3%, Shiba Inu 1.8% and PEPE 4%. However, despite these decreases, IntoTheBlock data shows a silver lining as a large proportion of holders of these meme coins remain profitable – 74.99% for Dogecoin, 80.57% for PEPE and 76.85% for FLOKI holders.
In contrast to recent crises, analyst Mustache remains optimistic about the potential of altcoins in the coming year. It compares current chart patterns and previous bull years like 2020 and 2017.
There are some massive signs that Altcoins will rise exponentially in 2024.
-The graph looks like the one from 2020, or even 2017.
-Gaussian Channel 2W changed from red to green.Don’t be put off by the market, this is just a new test. pic.twitter.com/aEm9FE8o06
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) June 20, 2024
The 2-week Gaussian Channel’s shift from red to green is a significant technical indicator that supports your outlook, signaling potential upward movements.
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Mustache advises investors to stay the course despite short-term market volatility, suggesting that current fluctuations could be setting the stage for a major recovery in 2024.
Featured image created with DALL-E, TradingView chart