Glassnode Analyst Reveals How Memecoins Are Derailing Altcoin Season

Bitcoin's Dominance Delays Altcoin Season

Bitcoin's dominance, currently standing at 57.4%, is hindering the anticipated altcoin season.

Memecoins Drain Investment from Established Cryptocurrencies

Investment is diverting towards memecoins, such as Dogecoin and PEPE, depleting funds from traditional cryptocurrencies like Ethereum and XRP. Analyst James Check estimates that 50-60% of investment in memecoins could have been allocated to established assets.

PEPE Token's Rise Prompts Market Trends

Memecoins are gaining traction earlier in the current market cycle than in 2021. PEPE Token, for instance, has witnessed a remarkable upward trend in early 2024, with traders reaping substantial profits.

Bitcoin ETFs Contribute to Memecoin Popularity

Check attributes the surge in memecoin investment to the approval of Bitcoin exchange-traded funds (ETFs), providing traders with an opportunity to invest in these volatile assets during Bitcoin's price rally.

Analysts See Altcoin Decline as a Bullish Signal

Despite the decline in altcoin prices and low trading volumes, some analysts view this as a positive sign. Luke Martin believes altcoins are currently undervalued and represent a buying opportunity, similar to the period preceding Bitcoin's significant rebound in 2020.