Meme coin dominance in altcoin market plummets, latest data reveals
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.
Image: CryptoQuant
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.
Image: Kaiko
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Interview with VanEck Investment Manager: From an Institutional Perspective, Should You Buy BTC Now?
The support levels near $78,000 and $70,000 present a good entry opportunity.

Macroeconomic Report: How Trump, the Federal Reserve, and Trade Sparked the Biggest Market Volatility in History
The deliberate devaluation of the US dollar, combined with extreme cross-border imbalances and excessive valuations, is brewing a volatility event.

Vitalik donated 256 ETH to two chat apps you've never heard of—what exactly is he betting on?
He made it clear: neither of these two applications is perfect, and there is still a long way to go to achieve true user experience and security.

Prediction Market Supercycle
