Investor Interest Has Shifted to Bitcoin and These Altcoins Lately! What Does It Mean for BTC and Cryptocurrencies?

Bitcoin and altcoins are showing signs of recovery after their sharp declines. While investors wonder which cryptocurrencies they are turning to, the on-chain analytics platform Santiment shared its latest analysis.

Accordingly, Santiment noted that investors' interest has shifted away from memecoins towards Bitcoin (BTC), Ethereum (ETH), and other layer one altcoins.

Santiment's social sentiment tracking tool showed that Bitcoin, Ethereum, and layer 1 blockchains dominate 44% of the discussions on social media, while the top six memecoins have a 4% share.

Investors' shift of focus from memecoins to Bitcoin and other altcoins could mean a "more stable and sustainable market environment" for Bitcoin.

Santiment said the likely reason for this change is the waning volatility and speculative price dominance in altcoins.

"Memecoins often tend to attract speculative enthusiasm driven by hyperbole, viral trends, and a gambling mindset rather than fundamental value. When these assets dominate discussions, this often signals a phase of extreme greed, where traders chase quick, short-term gains without considering long-term viability.

On the other hand, the change in traders' interest from memecoins to Bitcoin and Layer 1 assets is often a sign of a more stable and sustainable market environment. These are the key driving forces for long-term growth in the industry.

Santiment also said that the dominance of memecoins usually signals a stage where investors chase short-term gains and excitement fades before market corrections.

"Historically, memecoin crazes and speculative excesses often lead to sharp reversals, coming before market corrections."

When traders return to fundamental assets like Bitcoin, it indicates a healthier market cycle. This shift reduces the risk of unsustainable price increases and collapses.

Memecoin activities increased after the release of US President Donald Trump's memecoin, and Pump.fun usage reached an all-time high in weekly transaction volume at 3.3 billion dollars.