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Meme Coins Dominate Profit Distribution Among Altcoins as BTC Rallies Above $70K

Summary:
Bitcoin’s (BTC) rally back to ,000 has caused the value of meme coins to increase, making them the most profitable group among altcoins. According to a tweet by Santiment, the meme coin sector has experienced remarkable growth over the past week, regardless of their apparent lack of utility and the crypto community’s unfavorable stance on their existence. Meme Coins Dominate Altcoin Sector Santiment explained that speculative asset growth, as seen in the meme coin space, has been one of the main themes of the crypto sector in 2024, dispelling beliefs that pumps targeted at projects with minimal development are red flags. Such dramatic rises in value have been deemed signals that the cryptocurrencies in question are nearing their peak. However, Santiment believes the

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Bitcoin’s (BTC) rally back to $70,000 has caused the value of meme coins to increase, making them the most profitable group among altcoins.

According to a tweet by Santiment, the meme coin sector has experienced remarkable growth over the past week, regardless of their apparent lack of utility and the crypto community’s unfavorable stance on their existence.

Meme Coins Dominate Altcoin Sector

Santiment explained that speculative asset growth, as seen in the meme coin space, has been one of the main themes of the crypto sector in 2024, dispelling beliefs that pumps targeted at projects with minimal development are red flags.

Such dramatic rises in value have been deemed signals that the cryptocurrencies in question are nearing their peak. However, Santiment believes the timing of Dogecoin (DOGE), Maga (TRUMP), ArbDoge AI (AIDOGE), SPX6900 (SPX), and other meme coins whose market caps are surging may not be a sign that their rallies are ending, especially with Bitcoin halving about eight days away.

As a historically bullish event, the Bitcoin halving usually drives the value of BTC up, dragging the rest of the crypto market alongside. The mechanism reduces Bitcoin’s inflation rate by decreasing the number of BTC produced daily. This is done by slashing miners’ block rewards by 50%.

BTC has been volatile in the past few weeks, hitting a new all-time high and declining afterward as the market anticipates the halving. Since yesterday, the asset has been on the rise, moving up 2% from below $68,000 to above $70,000 and 6% in the last seven days. Data from CoinMarketCap shows DOGE, TRUMP, AIDOGE, and SPX have also rallied 9%, 36%, 31%, and 70% in the past week.

Large Cap Altcoins Trail Behind

In contrast, large-cap altcoins are trailing behind, with some recording little to no gains in the past days. Ether (ETH) is up just 6% in the past seven days, with a 24-hour gain of 1.7%. Solana (SOL) has been in the red, falling over 7% in the past week. Cardano (ADA) has traded sideways mostly, climbing 2% since yesterday, while Avalanche (AVAX) has seen no gains and minimal losses.

However, large-cap altcoins may have their comeback moment in the next few months as analysts expect a major altcoin rally after the Bitcoin halving.

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