In recent discussions within the crypto community, a significant shift in focus has emerged, centering on leading digital assets such as Bitcoin and other Layer 1 networks, including Ethereum, Solana, Toncoin, and Cardano. Market analytics firm Santiment reported on February 11 that these top Layer 1 assets now dominate 44% of crypto-related conversations, overshadowing discussions of popular meme coins like Dogecoin, Shiba Inu, and Pepe.
Analysts attribute this change to recent volatility and reduced speculative dominance of altcoins.
Santiment interprets this trend as indicative of a more stable market environment. The heightened attention on substantial Layer 1 assets reflects a maturation in the crypto market, emphasizing infrastructure, security, innovation, and broad adoption over hype-driven investments. Meme coins, often tied to viral phenomena and short-term speculative gains, have subdued presence, signaling a reduction in “excess greed.”
The recent decline in meme coin interest, thereby fostering a more balanced ecosystem, is characterized by reduced risk of speculative excess. Analysts highlight that this change illustrates a market "healthy cool-down" phase. The recent surge and subsequent decline of the Trump-named coin exemplify this shift, having quickly risen to $73 before plummeting to about $16.
The cryptocurrency market is currently showing modest recovery signs, with overall market capitalization slightly increasing to $3.35 trillion. Bitcoin remains a leader in the space, reclaiming $98,000 during the recent Asian trading session, though it continues to trend downward since reaching a peak on January 20.
Ethereum is trading at $2,700, still underperforming relative to Bitcoin and needing to surpass resistance at $3,100 for any substantive recovery. Meanwhile, other altcoins like XRP, BNB, and DOGE are experiencing gains, with Cardano rising by 14% following Grayscale's spot ETF application.
Santiment’s analysis suggests a positive market sentiment shift, highlighting a pivot towards assets with established utility, indicative of a healthier market cycle prioritizing long-term growth over speculative hype.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.