Bitcoin and Ether Take Center Stage, Leaving Memecoins in the Shadows, Say Analysts

Crypto News- In the past day, memecoins have taken a hit, seeing a 1.8% drop in market cap, contrasting with the 2.1% uptick seen across the broader crypto market, CoinGecko data reveals.

Nansen analysts attribute this decline to the allure of core cryptos like ether, which are drawing both attention and investment away from memecoins. The heavy reliance of memecoins on fleeting social media trends exacerbates their struggle in this competitive landscape.

Bitcoin and Ether Take Center Stage, Leaving Memecoins in the Shadows, Say Analysts

Over the last week, key memecoins such as Bonk, Pepe, and Shiba Inu have slipped by 14%, 5%, and 2% respectively, while core cryptos like ether have surged by over 7%, as per The Block’s Prices Page.

With bitcoin commanding 48.8% dominance and ether at 17.3%, investor interest is firmly fixed on these two giants, driven by institutional inflows facilitated by approved and prospective spot ETFs, according to YouHodler Chief of Markets Ruslan Lienkha.

Lienkha characterizes memecoins as “highly illiquid and volatile” amidst a crypto market grappling with liquidity issues. He underscores the market’s structural shift, marked by more discerning capital allocation.

This evolution is evident in the diminished retail participation on Coinbase, with quarterly trading volumes significantly lower compared to the frenzy of late 2021 when bitcoin soared to $68,000, painting a picture of a more mature and cautious market landscape.