Santiment confirmed that discussions surrounding meme coins are fading and investors are more interest L1 tokens.
The crypto market has seen a significant transition in interests as the focus of traders and investors is shifting from speculative meme coins to more established Layer 1 (L1) blockchain networks, including Bitcoin BTC $106 268 24h volatility: 0.6% Market cap: $2.11 T Vol. 24h: $19.81 B , Ethereum ETH $2 576 24h volatility: 1.4% Market cap: $311.00 B Vol. 24h: $13.28 B , Solana SOL $156.8 24h volatility: 7.1% Market cap: $82.81 B Vol. 24h: $4.91 B , Toncoin TON $3.00 24h volatility: 1.0% Market cap: $7.40 B Vol. 24h: $106.32 M , and Cardano ADA $0.64 24h volatility: 1.5% Market cap: $23.12 B Vol. 24h: $368.39 M .
According to a post on X (formerly Twitter) by blockchain analysis platform Santiment, investors are now moving away from short-term speculative hype toward long-term value-driven investments. This transition comes amid the recent fall in the values of meme tokens and altcoins while L1 tokens have relatively held strong.
L1 Tokens See Renewed Interest
According to Santiment, top L1 assets are now dominating 44.2% of crypto discussions, while interest in meme coins such as Dogecoin DOGE $0.18 24h volatility: 0.8% Market cap: $26.49 B Vol. 24h: $888.74 M , Shiba Inu SHIB $0.000012 24h volatility: 0.2% Market cap: $7.16 B Vol. 24h: $102.27 M , and Pepe PEPE $0.000011 24h volatility: 1.1% Market cap: $4.75 B Vol. 24h: $727.33 M has diminished. It is important to note that historically, phases dominated by meme coins often precede corrections, as excessive speculation and hype tend to push token’s to unrealistic valuations.
Santiment said that this shift in trader attention from meme tokens to Bitcoin and L1 networks “is generally a sign of a more stable and sustainable market environment”, adding:
“Meme coins tend to attract speculative enthusiasm, often driven by hype, viral trends, and a gambling mindset rather than fundamental value. When these assets dominate discussions, it typically signals a phase of excess greed, where traders chase rapid, short-term gains without considering long-term viability.”
As highlighted by Santiment in the X post, the cooling-off period for meme coins and the renewed interest in Layer 1 assets could indicate a healthier phase for the market. Instead of rapid speculative runs followed by sharp crashes, the market appears to be favoring assets with stronger fundamentals.
Altcoin Market Cap Closer to 20-day EMA
The altcoin market capitalization (excluding Bitcoin and Ethereum) daily chart provided by TradingView below shows a slight recovery after the recent selloff. The market cap currently stands at approximately $910.14 billion, marking a 2.88% increase on the day. However, it remains below the 20-day Exponential Moving Average (EMA), which sits at $934.7 billion. This suggests that while there is a short-term bullish push, the market is still testing resistance levels.
Photo: TradingView
The Relative Strength Index (RSI) currently hovers around 43.52, indicating neutral-to-bearish momentum but showing signs of recovery. A move above the 50 level could signal stronger bullish momentum. Additionally, the MACD (Moving Average Convergence Divergence) remains in negative territory but is showing signs of a potential crossover, which could hint at a possible trend reversal in the coming days.
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