According to a recent report from on-chain analytics firm Santiment, the crypto market narrative is changing. Bitcoin and top altcoins are leading the recovery as mania around meme coins is cooling off. Santiment’s social sentiment tracker shows that Bitcoin, Ethereum (ETH), Solana (SOL), Toncoin (TON), and Cardano (ADA) account for 44.2% of all crypto discussions across major platforms. Meanwhile, the top meme coins— Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have dropped to just 4%.
This falling interest in cryptocurrencies could be a sign of a more stable market where traders are focusing more on blockchains that host decentralized applications and smart contracts.
“Increased focus on those assets means more maturity and more information for the community: security, innovation and eventual adoption”, Santiment wrote on X .
All Frenzy Around Memecoin Burst as Traders Look to Stability
By nature, meme coins have always done well in speculative bull runs, but their dwindling social presence now means traders are moving to fundamentally strong assets.
Santiment said engagement has been tapering down since Donald Trump launched his official meme coin and the market went crazy. The on-chain analytics platform also noted that Pump.fun, one of the leading memecoin trading platforms, reached an all-time high of $3.3 billion in weekly trading volume before cooling down.
This is in line with historical market cycles where market corrections follow mem ecoin-driven rallies once the hype dies down.
“Cycles dominated by memecoins typically mean traders are chasing short term gains which often leads to corrections once sentiment shifts”, Santiment reported.
Meanwhile, layer-1 blockchains are at the core of long-term crypto adoption. These platforms host smart contracts, DeFi and Web3 applications so they are the backbone of the ecosystem.
Ethereum Sees Massive Exchange Outflows, Investors Confidence is High
While the memecoin market cools, institutional interest in Ethereum remains strong. Santiment reported 224,410 ETH was moved out of exchanges between Feb. 8 and Feb. 9, the largest daily outflow in 2 years.
This is generally bullish since large withdrawals mean investors are moving ETH to private wallets for long-term storage and not to sell.
“Though more of a long term metric this is a strong sign for Ethereum’s price”, Santiment said.
Despite Ethereum’s recent price volatility, these outflows are a sign of investor confidence in ETH’s long-term potential, especially as Ethereum’s layer-2 solutions are being implemented.
14,000 Bitcoin Moves After Years of Dormancy — What Does It Mean?
In another on-chain event, CryptoQuant contributor Crypto Dan pointed out that 14,000 BTC—worth more than $1.3 billion was moved on Feb. 10 after being dormant for 7 to 10 years.
The interesting thing is that allegedly, the BTC wasn’t sent to any exchanges, which means it was not moved to sell immediately.
“This kind of movement doesn’t mean Bitcoin’s price will drop. In the past similar cases have happened but didn’t always lead to a price drop”, Crypto Dan said.
Historically dormant BTC movements coincide with major market events but this one suggests a strategic reallocation rather than panic selling.
Will Bitcoin and Altcoins See a Bounce?
The market sentiment is very mixed; some expect a bounce, and others are cautious.
- Crypto Fear & Greed Index at 43 means Fear and it shows uncertainty in the market sentiment.
- Ethereum’s supply on exchanges is declining; this could mean accumulation and a stable price or a price bounce.
Bitcoin’s resilience despite macro concerns finally positions it as a long term store of value against inflation.
In general, meme coins give way to core blockchain assets, which means the market is maturing, and traders are paying more attention to fundamentally strong projects, not speculative hype.
Conclusion
All this reduced memecoin dominance and focus on Bitcoin and top altcoins, points to a more sustainable market.With Ethereum seeing big outflows from exchanges and Bitcoin’s dormant coins moving without hitting exchanges, investors are positioning for long term.
As the crypto space gets more interesting, watch for institutional movements, regulatory updates and macro trends that will set the tone for the next phase.
Stay updated with Deythere as we’re available around the clock, providing you with updated information about the state of the crypto world.
FAQ
1. What did Santiment’s report say about memecoins?
That it was a case where Santiment reported memecoins running out of steam, their social discussions just 4% while Layer-1 blockchains dominated 44.2% with Ethereum, Solana and Cardano leading the pack.
2. Why are traders abandoning meme coins for Bitcoin and top altcoins?
Memecoins thrive on speculative rallies but fade when the hype is over. Investors are looking at Bitcoin and top altcoins that are actual world cases for long term positions.
3. What does Ethereum’s big exchange outflow mean?
A withdrawal of 224,410 ETH from exchanges means investors are holding ETH for the long term, not selling immediately and should support a price bounce.
4. Does the 14,000 dormant BTC movement mean a sell-off?
No. While 14,000 BTC moved for the first time in years, it was not transferred to exchanges, which would mean it wasn’t sold but reallocated.
5. What is the Crypto Fear & Greed Index indicating?
The index is at 43 (Fear), reflecting market uncertainty as traders weigh macro and technical.
Glossary
Santiment: Blockchain analytics firm monitoring on-chain data and social sentiment.
Layer-1 Blockchains: Base-layer blockchain networks like Ethereum, Solana, and Cardano host smart contracts and dApps.
Memecoins: A cryptocurrency like Dogecoin and Shiba Inu which relies on social media hype not utility.
Exchange Outflows: A situation when investors move crypto from exchanges to private wallets, signaling long-term holding sentiment.
Crypto Fear & Greed Index: It reflects a metric that measures investor sentiment from Extreme Fear (0) to Extreme Greed (100).
References
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