According to CryptoPotato, the current crypto market cycle, experiencing a significant pullback, is primarily driven by the popularity of meme coins and the excitement surrounding Bitcoin ETFs. Economist and trader Alex Krüger noted that meme coins have dominated the narrative, along with Bitcoin following the ETF launches. Despite many of these coins dumping or going to zero, and scams being prevalent on the Solana and Base networks, large-cap meme coins remain among the strongest performers of the year. They continue to show significant returns despite the market correction, establishing themselves as a viable asset class.
CoinGecko data reveals that the total market capitalization of all meme coins is approximately $46 billion, surpassing the combined value of Ripple (XRP) and Cardano (ADA). They represent about 2% of the total crypto market. However, Krüger observed a dark side to this trend, as the market began to be flooded with scammy meme coin launches and cash-grabbing founders around February. These founders prioritize quick profit and short-term hype over longevity, causing a division in the crypto community over the value and purpose of meme coins.
Crypto market sentiment has declined, with the Bitcoin correction reaching 23% in a dip below $57,000. This pullback was anticipated and could potentially drop as low as 30%. Bitcoin investor 'CRG' remains optimistic, stating that Bitcoin is far from finished and predicts it will exceed $100,000 much sooner than expected. This could lead to significant gains in altcoins and potentially trigger another surge in meme coins.
