Meme Coin Dominance Plummets But Liquidity Increases

Bittime - In April, the dominance of meme coins in the altcoin market began to decline based on data from on-chain analysis platform, CryptoQuant. However, liquidity in the meme coin market has actually doubled since the beginning of the year, according to a recent report from on-chain analysis firm Kaiko.

Causes of Declining Memecoin Dominance

Ki Young Ju, CEO and founder of CryptoQuant, explained that the decline in meme coin dominance in the altcoin market may be related to a shift in investor focus from speculation to fundamentals. "It's time for us to switch, everything is done," he added.

Meanwhile, Kaiko analysts used a 1% market depth metric and concluded that meme coin market liquidity reached an all-time high of $128 million in early June, before experiencing a slight correction.

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WIF, MEME, BOME Strengthens

While this could be related to the price increase of many meme coins, tokens such as Dogwifhat (WIF), Memecoin (MEME), or Book of Meme (BOME) are experiencing significant liquidity growth in native units, ranging from 200% to 4000%.

"However, the trading costs of these tokens remain high, with bid-ask spreads exceeding 2 basis points on most exchanges," the report highlights.

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Best Performance

Despite this, meme coins remain the best-performing crypto narrative in the first quarter of 2024 so far, according to a report from CoinGecko. The average price growth of meme coins reached 1,313% in the first quarter, far surpassing the real-world asset (RWA) sector which is the second-largest sector with a growth of 286% in the same period.

Conclusion

With this data, it is clear that although the dominance of meme coins is decreasing, its liquidity is still attractive to many investors. The high price movements and significant trading fees show that meme coins still have a strong appeal in the crypto world, especially for those looking for quick and speculative profits.

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How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have a sufficient balance by depositing a certain amount of funds into the wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can only buy crypto assets on the application.

Learn the Complete Guide on How to Buy Crypto on Bittime.

Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational and does not constitute an offer or solicitation to sell or buy any crypto assets. Crypto asset trading is a high-risk activity. The price of crypto assets is volatile, where prices can change significantly over time and Bittime is not responsible for changes in fluctuations in the exchange rate of crypto assets.