March 7, 2024
Cryptocurrencies: Daily Update
By Holden
There are several potential trends developing based on Market Cap dominance, one of the clearest has been that the past week was dominated by Meme coin mania. DOGE, SHIB, BONK and countless other microcap meme coins did 2x-5x in just the past two weeks alone. This was a clearly retail driven move, but very likely will be one that is short-lived and ends with significant profit taking.
This means that DOGE and the other meme coins are likely to sell off just as rapidly as they ran up. BTC was the other key driver behind the crypto rally over the past two weeks, and also seems likely to see profit taking now that it has tested and rejected its previous all-time highs near $69,000 which will lead to liquidity flowing elsewhere in the crypto ecosystem.
Based on the immediate reactions of other coins to the rapid selling in DOGE and other recently hot coins, market cap dominance appears to be favoring Cash/Stablecoins as well as Large Cap Layer 1 tokens. This includes ETH, SOL, AVAX and DOT which have been relatively underperforming compared to BTC and the meme coins over the past few weeks.