The dominance of meme coins in the altcoin market has been experiencing a significant decline since April, according to recent data from CryptoQuant. This decline comes despite a remarkable 1,313% price surge in the first quarter of 2024, making meme coins the best-performing crypto narrative during that period.

On-chain analysis firm Kaiko reported that the liquidity in the meme coin market has doubled since the start of the year, reaching an all-time high of $128 million in early June. However, this growth has been accompanied by high trading costs, with bid-ask spreads exceeding 2 basis points on most exchanges.

Ki Young Ju, CEO and founder of CryptoQuant, attributed the decline in meme coin dominance to a shift in investor focus from speculative gambling to fundamentals. He commented, "Pack it up lads, it's over." Despite this decline, meme coins like Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) have seen substantial growth in liquidity, ranging from 200% to 4000%.

The report from Kaiko highlighted that the 1% market depth metric indicates a slight correction in meme coin market liquidity after the all-time high in early June. However, the average price growth of meme coins in Q1 2024 was significantly higher than other sectors, including real-world assets (RWA), which saw a 286% growth during the same period.

In conclusion, while meme coin dominance in the altcoin market is declining, the liquidity and price growth of these coins have been remarkable. The shift in investor focus towards fundamentals may contribute to a more sustainable growth trajectory for the crypto market. As the market continues to evolve, it will be interesting to see how meme coins and other sectors adapt and grow.