Bitcoin and Layer 1 projects gain prominence, driving investors away from memecoins

• • Shifting focus: Bitcoin and layer 1.
  • Less interest in memecoins.
  • Healthier and more sustainable market.

The cryptocurrency market is undergoing a notable transformation, with investors’ focus shifting from memecoins to more solid projects with greater long-term potential. This shift in behavior, observed by digital asset analytics firm Santiment, suggests a healthier and more sustainable market dynamic.

According to Santiment, traders are showing increased interest in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Toncoin (TON) and Cardano (ADA), all large-cap projects with solid fundamentals. This preference for assets with real utility and innovative technology indicates a more mature and informed approach from the crypto community.

“The crypto community has largely shifted its attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano. Collectively, the top Layer 1 assets are receiving 44,2% of discussions among specific coins. Meanwhile, major meme coins like Dogecoin, Shiba Inu, and Pepe are being discussed less and less on social media. This is likely due to recent volatility and speculative dominance of altcoins taking a back seat,” stated .

As the platform highlighted, the shift in focus from memecoins to Bitcoin and other layer-1 projects is a positive sign for the market. Memecoins, due to their speculative and volatile nature, attract enthusiasm driven by viral trends and a gambling mentality, often without considering the fundamental value of the assets. When these assets dominate the discussions, it usually indicates a phase of excessive greed, with traders seeking quick short-term gains without concern for the long-term viability of the projects.

“Historically, meme coin frenzies precede market corrections, as speculative excesses often lead to sharp reversals once the hype dies down. When traders return to assets with strong utility and established market positions, it suggests a healthier market cycle. This shift encourages a more balanced ecosystem, reducing the risk of unsustainable price spikes and dips fueled purely by speculative mania. There will be many more opportunities to capitalize on the bullish momentum of meme coins, but the reduced discussion rates are showing that we are in a healthy cooling period.”

This change in behavior encourages a more balanced ecosystem, reducing the risk of unsustainable price spikes and crashes fueled purely by speculative mania. By investing in projects with solid fundamentals and innovative technology, traders contribute to the development of a more robust and resilient market.

Santiment’s analysis points to a promising future for Bitcoin and other layer-1 projects. As the market matures and crypto adoption increases, it’s only natural that investors will seek assets with greater long-term potential and lower risk. This shift in focus is a sign that the market is evolving and becoming more sophisticated, which bodes well for the future of the crypto ecosystem as a whole.