Bitcoin, Meme Coins Dominate Crypto, But Other Projects Suffer, Analyst Says

Cryptocurrency analyst Benjamin Cowen highlights a growing imbalance in the market: capital is pouring into Bitcoin BTC/USD and meme coins, while other crypto projects struggle for attention.

What Happened: In a podcast on Feb 11, Cowen highlights Bitcoin dominance has surged from 38-39% to 64%, which he calls a sign of the market "healing itself."  

He argues that altcoin season isn't here yet because altcoins have not reclaimed 25% of Bitcoin's market cap, a necessary condition seen in past cycles.

Meme coin speculation is draining liquidity from promising projects, with Cowen warning that influencers hyping meme coins often have vested interests and mislead investors.

Cowen suggests that regulatory uncertainty and a lack of investor interest have discouraged development in the crypto space.

Cowen contrasts the current cycle with previous ones, noting that in 2015-2016 and 2019-2020, crypto investors focused on building real products, not waiting for retail hype to return.

Also Read: The Bitcoin 4-Year Cycle Is Dead, Analyst Says: ‘Adapt Or Die’

What's Next: The analyst believes that for the crypto market to mature, it needs to refocus on developing useful products rather than chasing quick profits.

He states, “Maybe that’s what needs to happen at some point in the cryptoverse is we need to actually come up with useful stuff besides all this meme coin garbage, and then people will come back.”

Cowen suggests that eventually, capital will rotate into projects with real utility, leaving meme coins behind.

However, he acknowledges that Bitcoin maximalists and meme coin traders may not agree with his outlook.

Read Next:

• Anthony Scaramucci Warns Meme Coins Create Market Contagion, Fuel Bitcoin Skepticism

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