In the cryptocurrency market, the share of memecoins within the total value has plummeted to its lowest level in the past year and a half. This decline is linked to the current market cycle, which some analysts refer to as the “Ethereum 
$2,328 season.” According to data, the presence of memecoins in the altcoin market has fallen to a level not seen since February 2024.
Reasons for Decreasing Market Dominance
Recent data from CryptoQuant indicates that the percentage of memecoins in the altcoin market has dipped to 0.039. Analysts suggest that one fundamental reason for this drop is Ethereum’s increasing dominance. They argue that Ethereum is capturing a sizable portion of liquidity recently.
This shift leads to memecoins and many altcoins receiving a smaller share of the investment pie. A social media post on the subject noted: “Clearly, it is not the memecoin season; very few are performing well, and those are exceptional cases.”
Investors gravitating towards Ethereum have strengthened its position relative to Bitcoin 
$76,395 and other altcoins. Some observers emphasize that this period is unique to Ethereum and that a classic altcoin season has not yet begun. Cas Abbé shared his perspective on the situation: “We are in Ethereum season; most liquidity is flowing to ETH. A genuine altcoin season requires more liquidity from retail investors, which won’t happen until ETH reaches a new peak.”
Performance Comparisons and Cyclical Expectations
Since April, the total market capitalization of memecoins has increased by approximately 79.5%. However, this growth lags behind Ethereum, which surged 215.91% in the same period. In August, Ethereum rose by around 25.41%, while leading memecoins like Dogecoin 
$0.095179, Shiba Inu, and Pepe recorded limited gains.
This divergence is interpreted as Ethereum attracting market liquidity, thereby reducing the market share of memecoins.
Is a New Memecoin Season Possible?
Experts predict that memecoins might experience new surges in the future. The market generally follows a four-stage cycle, and the second stage, dominated by Ethereum, is currently underway. Merlijn The Trader commented on the market’s current position: “We’ve waited years for this moment, and now we’re here. ETH just entered the 2nd stage of Ethereum season. The best rallies in the past started here.”
In the third stage, Ethereum continues to outperform Bitcoin, and large-cap altcoins gain momentum. The final stage sees market enthusiasm spread across all altcoins, including memecoins, with rapid increases in smaller altcoins. As expressed by another analyst: “Altcoins have started to rise, and memecoins always rise at the end.”
In conclusion, Ethereum’s market dominance has led to a decline in memecoins. However, in subsequent cyclical stages, memecoins could capture substantial attention again. When this will happen depends on market conditions and investment distribution.
