Markets
“Memecoins and AI will dominate”: Is the crypto market changing?
- Memecoins and AI tokens saw a strong rally earlier in the week.
- But memecoins maintained their dominance during the recovery, with PEPE and WIF leading the way.
After a bloody collapse in recent days, the market rebounded on Monday, with memecoins and AI tokens leading the recovery.
Tuesday’s top gainers included dog hat [WIF] And Fetch [FET]. They recorded double-digit gains as Bitcoin [BTC] reclaimed the $60,000 level.
Reaction to the recovery, market observer Bluntz Capital note,
“Memes and AI will continue to be the two main narratives, in my opinion. Choose your fighters wisely.
Will memecoins regain dominance?
The recovery continued on Wednesday, and coins Still Dominates Top Gainers, According to CoinMarketCap data. Pepe [PEPE] And Brett [BRETT] increased by 12% and 18% respectively in the last 24 hours.
However, last week, CryptoQuant founder Ki Young Ju established that memecoin’s dominance in the altcoin market had declined. Based on this data point, Ju said he was “bearish” on memes but long on BTC.
Indeed, the recent market rout has decimated the alternative market, with memes like WIF falling more than 48%.
Although it posted gains of 15% and 11% on June 24-25 and reached $2, the WIF market bias was still bearish, especially on higher time frame charts.
However, some memes like PEPE have shifted to a bullish bias and could extend the rally.
PEPE was above its short-term trend, the 50-day EMA (exponential moving average), and closed daily above a low of $0.000012.
Source: PEPE/USDT, TradingView
To further evaluate Bluntz Capital’s hypothesis, AMBCrypto analyzed open interest (OI) rates, which track liquidity flows into derivatives markets.
In the last 24 hours, memes came in second with 7.5% according to Coinglass OI data, indicating that greater market liquidity has flowed into the segment. However, the AI segment comes in 17th position.
Through even segment, PEPE, Dogecoin [DOGE]and WIF recorded the highest positive OI, indicating that the market was overly optimistic on these three over the past 24 hours.
However, another market observer, Alex Kruger, viewed memecoins as a “joke» This only benefits the initiated.
That said, despite the decline in altcoin dominance, the meme segment still saw significant traction compared to the rest of the market over the past 24 hours.