Memecoin Market Share Hits Record Low, Down to 3% of Altcoin Market
The memecoin market has hit a new low, with its share of the broader altcoin market falling to just 3%. This marks a record low for the ratio, which has been steadily declining as altcoins have outperformed memecoins in recent gains.
According to Darkfost, a cryptocurrency analyst, the ratio of memecoin market capitalization to altcoin market capitalization dropped to 0.027 on October 5, an all-time low. This means that memecoins now make up a mere 3% of the altcoin market.
The increasing number of memecoins is also a contributing factor to this decline, as limited capital is being spread across a growing number of tokens, further diluting market liquidity.
While Darkfost suggests that such an extreme divergence could lead to a memecoin rebound, he notes that it would be difficult to view this as a signal of a trend reversal.