— Santiment (@santimentfeed) July 19, 2024
All of the major volume spikes from the past month, illustrated by different sectors.
Increased volume in Bitcoin and Layer 1 assets lead to future crypto rises
Increased volume in AI & Big Data coins are neutral
Increased volume in meme coins lead to tops pic.twitter.com/lpTFWQUacN
AI Cryptos and Memecoins are Exploding, But for How Long?
full version at cointribune
Bitcoin’s resurgence is undeniable, now flirting with 68,000 dollars. This feat marks a new era of investment in cryptocurrencies. While some analysts predict the rise of AI crypto and memecoins, others emphasize the importance of core assets like bitcoin and Layer 1s. Let’s explore the recent evolution of transaction volumes and their impact on the crypto market.
Bitcoin and Layer 1 assets: The drivers of the rise
The beginning of July offered a golden opportunity for bitcoin investors. After a temporary drop to around 53,800 dollars, transaction volume saw a notable increase, reflecting renewed interest from investors.
As noted by Santiment on X, this increase in volume in core assets could well be the harbinger of a future rise in cryptos.
Indeed, we observed:
- A 0.5% increase in market capitalization;
- Transaction volume exceeding 30 billion dollars.
This trend shows that bitcoin and core assets remain safe bets for investors looking to diversify their portfolio in a sometimes unpredictable market.
According to a renowned analyst, “bitcoin remains the compass of the crypto market, often indicating the direction for other cryptocurrencies to follow“.
AI Crypto and Memecoins: Between promises and speculation
Alongside the rise of bitcoin, AI cryptos and memecoins have also attracted attention. Coins related to artificial intelligence and big data have seen their capitalization increase from 28 to 30.5 billion dollars in a month.
This sector, while promising, remains in a consolidation phase with significant transaction volumes but without exponential growth. Among the most traded are INJ, TAO, and NEAR.
Memecoins, on the other hand, are riding the wave of speculation. After the market’s post-dip recovery from Bitcoin, transaction volumes for coins like SHIB, PEPE, WIF, and DOGE have exploded.
However, this increase is often due to speculative market movements rather than actual utility, which could indicate a future correction.
The memecoin phenomenon serves as a reminder that in the world of cryptos, caution is advised to avoid falling into pump and dump traps.
