Memecoin traders appeared to be locking in profits on Monday after a strong start to the year, according to analysts, with memecoin trading volumes spiking while memecoin marketcap fell.
Memecoin trading volume spiked to $5.62 billion on Monday, rising 106% from a day earlier, while memecoin market capitalization fell 6%, according to crypto data platform CoinMarketCap.
The volume has since dropped back down to $3.6 billion, down more than 24% for the day.
Vincent Liu, the chief investment officer at Kronos Research, told Cointelegraph a surge in memecoin trading volume alongside a falling market cap points to heavy churn rather than fresh capital entering the market and typically reflects profit-taking, short-term flipping, and capital rotation.
Read more: cointelegraph.com
Source: CRYPTO WORLD NETWORK NEWS
