Memecoin Market Cap Falls to Record Low 3% of Altcoin Market
Summary
- The ratio of memecoin market capitalization to altcoin market capitalization fell to 0.027, or about 3%, marking a record low.
- Altcoins have recently posted stronger gains than memecoins, widening the gap between the two markets. That could leave room for a memecoin rebound, but it is difficult to view it as a signal of a trend reversal.
- The number of memecoins has risen sharply, spreading limited capital across more tokens and diluting market liquidity.
Forecast Trend Report by Period
The memecoin market’s share of the broader altcoin market has fallen to its lowest level on record.
On Oct. 5, cryptocurrency analyst Darkfost wrote on X, formerly Twitter, that the ratio of memecoin market capitalization to altcoin market capitalization had dropped to 0.027, an all-time low. That implies memecoins now make up about 3% of the altcoin market.
He said the gap between the two markets has continued to widen as altcoins have recently posted stronger gains than memecoins.
Darkfost added that such an extreme divergence could open the door to a memecoin rebound. Still, he said it would be difficult to treat that alone as a signal of a trend reversal.
He also cited the sharp increase in the number of memecoins as a headwind, with limited capital being spread across a growing number of tokens. “Like altcoins, memecoins have also grown sharply in number, further diluting liquidity in the market,” Darkfost wrote.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.