With investors turning to Bitcoin (BTC) and Ethereum (ETH), meme coin projects were put to rest.
Especially cryptocurrency whales Bitcoin And to Ethereum In these days of great interestmeme coin projects with their low performance left behind. In the report shared with The Block by Nansen analysts, meme coins specific social media trends are declining and it was stated that investors are turning to Bitcoin and Ethereum these days.
In past bull cycles, priority has always been Bitcoin and Ethereum. Then, as Bitcoin lost its market dominance, investors turned to altcoins such as meme coins. Especially in the current period spot Bitcoin exchange-traded fund (ETF) The approvals and the anticipation for the spot Ethereum ETF have further strengthened the inflow into these two projects.
On the other hand, meme coins attracted attention by being positioned at the starting point of this bull cycle. mid 2023 Pepe (PEPE) followed by a frenzy starting with Bonk’s (BONK) It continued with its incredible rise. Shortly before On Dogewifhat (WIF) In a similar way, he managed to make his investors happy. But this sporadic rises In general, the meme was not reflected in the coin market.
Making a statement on the subject, Nansen analysts used the following statements:
Memecoin’s underperformance is likely due to the current strength of underlying cryptocurrencies like ether attracting investors’ attention and diverting capital away from them. Their reliance on social media trends and limited foundations further enhances this effect.