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Nansen spoke about the reasons for the fall of meme coins

The meme coins segment is experiencing an outflow of funds amid the growth of the global crypto market. This is reported by The Block.

According to CoinGeckoover the last 24 hours, the capitalization of meme coins decreased by 2.4% and amounted to $22.6 billion. At the same time, the total capitalization of cryptocurrencies increased by 0.7%, reaching $2.1 trillion.

Nansen analysts attribute this to the fact that investors switched to Bitcoin and Ethereum.

“Meme coins’ exposure to social media trends and limited fundamentals further exacerbate this effect,” they said.

Over the past week basic meme coins, such as Bonk, Pepe and Shiba Inu, fell 15%, 3% and 2.5% respectively. During the same period, Ethereum grew by more than 5%.

Bitcoin dominance is now 48.9%, ether – 17.2%.

Head of Markets at YouHodler Ruslan Lienkha explains the interest in leading coins with the influx of institutional capital through the Bitcoin ETF, as well as the expectation of the likely approval of the Ethereum ETF.

“In addition, meme coins are currently extremely illiquid and unstable. A significant part of the cryptocurrency market is still struggling with poor liquidity,” Lienha added.

The expert emphasized that the current bull run is structurally different from the 2021 hype. According to him, today’s crypto market is “segmented through a more reasonable allocation of capital.”

Source: Cryptocurrency

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