Bitcoin, AI, and Meme Coins Skyrocket in Volume: Santiment
Yesterday, Santiment, the market intelligence platform, took on X to share the big increases in trading volume for different types of cryptocurrencies over the past month. They also highlighted the impact on the overall cryptocurrency market.
The chart on X provides evidence of the rising trading volumes in different categories of cryptocurrencies in the last month.
Increased Volume in Bitcoin and Layer 1 Assets Lead to Future Crypto Rises
In July’s first week, we saw a dip in Bitcoin’s price with the price going low at approximately $53.8k. This was a perfect opportunity for the traders and investors to buy on this temporary dip. After a few days, the market saw a mild spike in the volume of Bitcoin and other layer-1 assets compared to other crypto categories.
Since then, we have seen a significant rise in volume and a 0.5% increase in the market capitalization. The rise in Bitcoin (BTC) trading volume and investment in the base blockchains (Layer 1 assets) shows investors’ interest, which can act as a bullish signal for these coins.
$28 billion to $30.5 billion Market Cap of AI and Big Data Coins
Around 20th June, major AI and big data coins saw a major buying dip. More traders were investing and trading in technological and innovative coins. The market cap was around $28 billion dollars with a daily volume of approximately $2.1 billion.
Since then, the market cap has increased to $30.57 billion at the time of writing this publication. The market has seen a significant amount of buying as well as selling. The top traded coins include INJ, TAO, and NEAR.
More buying and selling tied to AI and big data doesn’t necessarily make the market good or bad. This suggests that these sectors are neither experiencing significant growth nor negative growth.
Increased Volume in Meme Coins
After the market recovered a few days after Bitcoin’s dip, the market saw a significant rise in the volume and the overall market capitalization of the meme coins. A major reason was the greed taking over traders after the recovery. SHIB, PEPE, WIF, and DOGE saw the most volume amongst all the meme coins.
Normally, pump-and-dump naked shorting activity leads to a spike in the trading volume of the meme coin sector, which signifies a market top. This is also an issue of market speculation and is usually a sign of a market decline, as these coins mostly rely on emotion and not utility.
