Nansen analyst predicts that these crypto coins will outperform Meme coins during the market recovery

Aurelie Barthere, the principal analyst at chain analysis firm Nansen, shared a recent market forecast for crypto-assets. Barthere believes major cryptocurrencies such as Bitcoin, Ethereum and Solana may outperform meme coins as the market recovers.

This projection is based on a comprehensive analysis of various factors including on-chain data, Stablecoin market capitalization, fee analysis, and overall ecosystem growth indicators.

Risk-on sentiments and crypto market trajectory

According to for Barthere, the recent crypto sell-off has reduced risk-on sentiment among traders. This led to a pronounced negative turn in yield spread.

This shift in sentiment has caused investors to become more risk averse, potentially favoring established major cryptocurrencies over riskier assets such as meme coins.

“Our analysis suggests that the recent crypto selloff has reduced risk-on views among traders, leading to a noticeable negative turn in yield spreads,” Nansen said.

Barthere stressed: “As the market recovers, we expect a more muted trajectory, possibly centered around key signs.” The analyst’s forecast is further supported by technical price patterns that indicate crypto prices are oscillating between consolidation and further correction.

This market volatility has been influenced by several factors, including strong earnings reports from tech giants such as Alphabet and Microsoft. These reports exceeded expectations, especially in artificial intelligence (AI) and cloud services.

Nansen’s “Research Weekly” report, published on April 28, revealed continued growth in the crypto ecosystem. The spike in cross-chain fees matching crypto price action confirms this.

This increase in cross-chain activity indicates increased adoption and use of decentralized applications (dApps) and protocols across various blockchain networks.

One key indicator of this growth is the higher Stablecoin market cap, indicating greater liquidity and demand for stable digital assets within the crypto space.

Stablecoins play a crucial role in facilitating transactions, lending and trading activities, and their market capitalization growth reflects the growing ecosystem.

Cross-Chain Fees and Blockchain Performance

Cross-chain fees peaked in March, coinciding with the movements in crypto prices. This trend highlights the increased interoperability and interconnectivity between different blockchain networks.

It enables users to seamlessly transfer assets and leverage multiple protocols across multiple ecosystems. Within this ecosystem, Solana (SOL) has maintained its fee market share, indicating continued usage and activity on its network.

Meanwhile, Base has emerged as a strong competitor, gaining significant traction and attracting users to its platform. However, Arbitrum, a prominent Ethereum Layer 2 scaling solution, has seen a decline in its fee market share.

This can be attributed to various factors, such as network congestion, shifting user preferences or the emergence of competing solutions.

While the disconnection of Renzo Retake ETH that happened recently did not significantly affect the price of other tokens, analysts at Nansen are monitoring the market for significant lifting.

Excessive leverage can amplify market movements and increase systemic risk, leading to cascading liquidations and potential contagion effects.

As such, the level of leverage in these token protocols is closely watched to assess potential risks and vulnerabilities. In addition to on-chain data and ecosystem growth indicators, external factors also influence market sentiment.

Strong earnings reports from tech giants such as Alphabet and Microsoft exceeded expectations. This is particularly evident in artificial intelligence (AI) and cloud services, which have given a positive boost to overall market sentiment.

These encouraging results from major technology players could potentially boost investor confidence and contribute to a more favorable market environment. This could potentially benefit established cryptocurrencies such as BTC, ETH and SOL.