Bitcoin and Layer-1 Assets Take Center Stage as Meme Coin Craze Fades

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According to Santiment, the crypto community has shifted its attention to Bitcoin and other layer-1 assets like Ethereum, Solana, Toncoin, and Cardano. The top L1 assets are now getting 44% of discussions among specific cryptocurrencies, while top meme coins like Dogecoin, Shiba Inu, and Pepe are being discussed less and less across social media.

This shift in attention is likely due to the recent volatility and speculative altcoin price dominance falling behind. Santiment suggests that this is a positive shift, as it usually signals a more stable and sustainable market environment.

Meme coins, which are driven by hype, viral trends, and a gambling mindset rather than fundamental value, signal a phase of “excess greed” where traders chase rapid, short-term gains without considering long-term viability. On the other hand, Bitcoin and layer-1 networks represent the foundational infrastructure of the crypto space, and increased focus on these assets usually reflects a more mature and informed approach by the community, which prioritizes security, innovation, and real-world adoption.

Santiment concluded that the positive sentiment shift encourages a more balanced ecosystem, reducing the risk of “speculative mania,” while the decreased discussion rates for meme coins show that we are in a “healthy cool-down” period.

Recent meme coin mania was fueled by the launch of Donald Trump’s namesake coin (TRUMP) in mid-January. The token, which has no utility whatsoever, surged to around $73 before crashing by 78% to current levels around $16 just three weeks later.

Crypto markets are showing slim signs of recovery today, with total market capitalization up marginally to $3.35 trillion. Bitcoin has led the way as usual, reclaiming $98,000 during the Tuesday morning Asian trading session. However, it has still been down-trending since its Jan. 20 all-time high.

Ethereum returned to $2,700 but remains severely weakened and continues to lose ground against BTC. ETH needs to clear resistance at $3,100 to show any real recovery signals. Altcoins were faring a little better, with XRP, BNB, and DOGE making larger gains and ADA surging 14% following a spot ETF application from Grayscale.

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2025-02-11 10:43