The crypto market is witnessing a renewed interest in Bitcoin and top-tier altcoins following recent volatility, as enthusiasm for speculative memecoins begins to wane.
According to on-chain analytics firm Santiment, traders are shifting their focus back to assets such as 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 crypto-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, which are often driven by viral trends and short-term speculation, tend to dominate during periods of extreme greed. Santiment notes that such frenzies typically precede market corrections, as unsustainable price surges eventually result in sharp declines. When investor focus returns to assets with stronger fundamentals, it often indicates a healthier market cycle.
Institutional Investors Pour $1 Billion Into Crypto, Ethereum Leads Inflows
The recent surge in memecoin trading, partly fueled by the involvement of former U.S. President Donald Trump, propelled 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 its balance.