Ethereum News Today: Meme Coins Hit 18-Month Low as Ethereum Dominance Surges

Meme coins have fallen to their lowest level of dominance in 18 months, with their collective market share in the broader altcoin segment dropping to 0.039 as of August 14, 2025. This level last occurred in February 2024 and marks a sharp decline from previous peaks [1]. The drop is largely attributed to the shift of capital and attention toward more established cryptocurrencies, especially Ethereum, which has captured a significant portion of market liquidity [2].

The performance of major meme coins has lagged behind Ethereum in recent months. While Ethereum rose by 25.41% since early August, Dogecoin gained 10.48%, Shiba Inu 4.58%, and Pepe 7.31%. This growing gap highlights the disparity in investor sentiment and market dynamics [2]. Analysts note that Ethereum’s dominance coincides with a surge of institutional interest, including a $640 million inflow into a BlackRock Ethereum ETF and the accumulation of 300,000 ETH by BitMine Immersion within a week [2]. These movements create a strong liquidity pull, leaving memecoins struggling to attract comparable capital.

The waning appeal of meme coins reflects broader market trends favoring projects with clearer use cases and technical fundamentals. Coins such as Dogecoin, Shiba Inu, and Pepe—once central to the meme coin phenomenon—have seen double-digit declines in recent weeks and are now losing relevance amid rising interest in alternatives [3]. Unlike traditional cryptocurrencies, meme coins have historically relied on social media momentum and speculative fervor rather than tangible utility, making them more volatile and less attractive to institutional investors [4].

Despite the current downturn, some experts suggest that the crypto market operates in a four-phase cycle. The current phase, dominated by Ethereum, is expected to be followed by a broader altcoin resurgence, with large-cap altcoins leading the charge before the eventual “altseason,” a period of widespread euphoria and price surges. This final phase is often characterized by a late rally in meme coins, historically driven by heightened retail participation and viral momentum [2]. Technical analysis supports this cyclical view, as the performance hierarchy in August indicates a clear leadership shift that could reverse in the final phase [2].

While the current slump raises questions about the long-term viability of meme coins, historical data shows that Dogecoin has averaged a 92.6% increase during major bull markets since 2015. However, analysts caution that such gains come with significant risk and are not guaranteed in the evolving crypto landscape [3]. As institutional capital continues to reshape market dynamics, meme coins may find it increasingly difficult to compete with projects offering more concrete value and utility.

Sources:

[1] Bitget - https://www.bitget.com/news/detail/12560604914200

[2] CoinMarketCap - https://coinmarketcap.com/community/articles/68a0705e98c3fa6526b95724/

[3] CoinCentral - https://coincentral.com/as-bitcoin-ethereum-hit-new-all-time-high-this-viral-memecoin-could-repeat-shibs-26000/

[4] Mitrade - https://www.mitrade.com/au/insights/news/live-news/article-3-1044337-20250816