The cryptocurrency market is experiencing a renewed interest in Bitcoin and top-tier alternative coins (altcoins) following recent market turbulence. The enthusiasm for speculative memecoins is beginning to fade.
According to Santiment, an on-chain analytics firm, traders are now shifting their attention back to assets like Bitcoin (BTC) and Ethereum (ETH), indicating a change in market sentiment. Data from Santiment reveals that discussions about Bitcoin, Ethereum, and other Layer 1 projects now make up 44% of the cryptocurrency-related social media activity, while interest in leading memecoins has dropped to just 4%. This trend suggests a transition towards a more stable market environment, as speculative hype gives way to long-term investment strategies.
Memecoins, often driven by viral trends and short-term speculation, tend to dominate during phases of extreme greed. Santiment points out that such frenzies typically precede market corrections, as unsustainable price surges eventually lead to sharp declines. When investor focus returns to assets with stronger fundamentals, it often indicates a healthier market cycle.
Institutional investors have recently poured $1 billion into the cryptocurrency market, with Ethereum leading in inflows. The recent surge in memecoin trading, partly driven by former U.S. President Donald Trump’s involvement, has pushed platforms like Pump.fun to a record $3.3 billion in weekly volume. However, with traders now prioritizing Bitcoin and major altcoins, the market appears to be regaining balance.