Meme coin dominance in altcoin market plummets, latest data reveals
Despite a dominance decline, meme coins see a 1,313% price surge in Q1 2024.
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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.
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.
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.
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