Memecoin Market Share Drops to All-Time Low of 3% of Altcoins

The memecoin market has hit a new low, accounting for just 3% of the broader altcoin market. Cryptocurrency analyst Darkfost reported on Oct. 5 that the ratio of memecoin market capitalization to altcoin market capitalization dropped to 0.027, marking an all-time low.

This decline reflects a widening gap between memecoins and altcoins, as the latter have recently seen stronger gains. While this extreme divergence could potentially set the stage for a memecoin rebound, it is not necessarily a sign of a broader trend reversal, according to Darkfost.

One contributing factor to this trend is the sharp increase in the number of memecoins. This proliferation spreads limited capital across more tokens, further diluting market liquidity. Darkfost noted that, like altcoins, memecoins have seen a rapid rise in their numbers, exacerbating the liquidity issue in the market.