Memecoins Decline as Ethereum Dominates Altcoin Liquidity

The memecoin market is currently experiencing a downturn amid a broader altcoin correction, leading to a loss of market share and visibility. Key points include:

Many memecoins are trading below their recent highs as capital shifts towards established altcoins.
A few select memecoins have shown gains, but this is not reflective of the overall market trend.
Traders are avoiding high-volatility tokens without strong catalysts.
Analyst Darkfost highlights that memecoins lag behind the broader altcoin market in performance and investor attention.
Ethereum is absorbing significant liquidity, further diminishing memecoins' dominance.
Darkfost warns that the current environment is not favorable for memecoins without renewed hype.

Memecoin Market Cap Overview

The total memecoin market cap is approximately $70.74 billion, with a slight gain of 2.64% recently. Notable points include:

The market peaked near $80 billion in July but has struggled to maintain momentum since then.
The 50-day simple moving average is acting as support at around $66.57 billion, indicating some buying interest.
Market participants are actively trading despite a slowdown, but sellers remain dominant above $75 billion.
A failure to hold above the 50-day SMA could lead to a deeper correction, potentially testing the $64–$65 billion range.