L1 Discussions Take Over as Meme Coin Hype Fades Away: Santiment

Santiment highlighted a cooling-off period for meme coins and the renewed interest in Layer 1 assets.

The shift represents a maturing crypto market with investors prioritizing security, innovation, and real-world adoption.

The altcoin market cap is coming closer to the 20-day EMA which if reclaimed, could signal a reversal for prominent L1 tokens as well.

The crypto market has seen a significant transition in interests as the focus of traders and investors is shifting from speculative meme coins to more established Layer 1 (L1) blockchain networks, including Bitcoin , Ethereum , Solana , Toncoin , and Cardano .

According to a on X (formerly Twitter) by blockchain analysis platform Santiment, investors are now moving away from short-term speculative hype toward long-term value-driven investments. This transition comes amid the recent fall in the values of meme tokens and altcoins while L1 tokens have relatively held strong.

L1 Tokens See Renewed Interest

According to Santiment, top L1 assets are now dominating 44.2% of crypto discussions, while interest in meme coins such as Dogecoin , Shiba Inu , and Pepe has diminished. It is important to note that historically, phases dominated by meme coins often precede corrections, as excessive speculation and hype tend to push token’s to unrealistic valuations.

Santiment said that this shift in trader attention from meme tokens to Bitcoin and L1 networks “is generally a sign of a more stable and sustainable market environment”, adding:

“Meme coins tend to attract speculative enthusiasm, often driven by hype, viral trends, and a gambling mindset rather than fundamental value. When these assets dominate discussions, it typically signals a phase of excess greed, where traders chase rapid, short-term gains without considering long-term viability.”

“Meme coins tend to attract speculative enthusiasm, often driven by hype, viral trends, and a gambling mindset rather than fundamental value. When these assets dominate discussions, it typically signals a phase of excess greed, where traders chase rapid, short-term gains without considering long-term viability.”

As highlighted by Santiment in the X post, the cooling-off period for meme coins and the renewed interest in Layer 1 assets could indicate a healthier phase for the market. Instead of rapid speculative runs followed by sharp crashes, the market appears to be favoring assets with stronger fundamentals.

Altcoin Market Cap Closer to 20-day EMA

The altcoin market capitalization (excluding Bitcoin and Ethereum) daily chart provided by TradingView below shows a slight recovery after the recent selloff. The market cap currently stands at approximately $910.14 billion, marking a 2.88% increase on the day. However, it remains below the 20-day Exponential Moving Average (EMA), which sits at $934.7 billion. This suggests that while there is a short-term bullish push, the market is still testing resistance levels.

Photo: TradingView

The Relative Strength Index (RSI) currently hovers around 43.52, indicating neutral-to-bearish momentum but showing signs of recovery. A move above the 50 level could signal stronger bullish momentum. Additionally, the MACD (Moving Average Convergence Divergence) remains in negative territory but is showing signs of a potential crossover, which could hint at a possible trend reversal in the coming days.