The meme coin market is slowly bottoming, with top meme coins showing the best returns for traders.

The meme coin market is slowly bottoming, with top meme coins showing the best returns for traders, according to Into The Block.

What Happened: According to on-chain analytics from Into The Block, the meme coin market cap has returned to Q3 2024 levels, which were the lowest since early 2024 levels.

Key on-chain indicators to watch for a market shift include the number of traders: a rise in short-term traders signals new retail engagement.

Most meme coins are still in a downtrend, but a reversal could indicate a turning point.

Dogecoin (CRYPTO: DOGE) has seen an increase in short-term traders in late July 2024, although this number has dropped since. The number of short-term traders in Shiba Inu (CRYPTO: SHIB) is stable.

Other important metrics include:

Dogecoin's transaction count held strong until late 2024 before falling.

Floki emerged as the highest gainer, followed by Dogecoin, Shiba Inu, and Pepe.

Related Link: Cathie Wood Believes Most Memecoins Will Face 'Fearsome Declines,' But They Could End Up Becoming Collector's Items

Why It Matters: In a Bloomberg Crypto interview, Ark Invest founder, CEO and chief investment officer Cathie Wood warned that most meme coins will become worthless over time.

When asked about the Trump meme coin she responded that some meme coins will be collector's items - "digital collectors' items."

She believes some will withstand the judgement of time and Trump meme coin will be one of them.

See More: Best Meme Coinsoutput: According to Into The Block, the meme coin market cap has returned to Q3 2024 levels, which were the lowest since early 2024 levels.

The meme coin mania that began in late 2023 appears to be winding down as most meme coins are still charting lower highs and lows. A reversal in this trend could indicate a turning point in the meme coin market.

Most meme coins are still in a downtrend, but a reversal could indicate a turning point. To identify a potential shift in the market, we can analyze the number of traders entering and exiting these coins. A rise in short-term traders indicates new retail engagement with the asset class.

Among the top meme coins, we can observe that Dogecoin (CRYPTO: DOGE) saw an increase in short-term traders in late July 2024, although this number has since dropped. On the other hand, the number of short-term traders in Shiba Inu (CRYPTO: SHIB) remains relatively stable.

Among the top meme coins, we can observe that Dogecoin saw an increase in short-term traders in late July 2024, although this number has since dropped.

Dogecoin Transaction Count Drops

Looking at other on-chain metrics, we can see that the transaction count for Dogecoin started to drop in late 2024.

This decrease in transactions might suggest a decline in overall activity and interest in Dogecoin.

The transaction count serves as an indicator of the level of activity and engagement within the Dogecoin network.

Top Meme Coins Show Best Returns For Traders

In terms of returns for traders, we can see that Floki has emerged as the highest-performing meme coin, followed by Dogecoin, Shiba Inu, and Pepe.

These coins have generated varying degrees of profit or loss for traders who entered and exited during specific periods.

The performance of these meme coins can be influenced by factors such as price volatility, liquidity, and trading volume.