Crypto analysts have observed a significant shift in investor sentiment over the past several weeks, suggesting a more knowledgeable investor base, even among the retail holders.

Previously dominated by speculative meme coins, the market is now increasingly focused on high-tech altcoin projects with real-world utility and novel blockchain solutions.

Investor Interest Shifts to RWA and DeFi

Web3 information platform Kaito AI and insights from crypto analysts suggest that investor mindshare is increasingly shifting toward Real-World Assets (RWAs), decentralized finance (DeFi), and advanced blockchain protocols.

According to Kaito AI, RWA mindshare has surged after reaching a 12-month low in January. This resurgence signals renewed interest in tokenizing real-world financial assets, which has attracted institutional players.

Similarly, DeFi has regained prominence, overtaking AI tokens in market interest. The resurgence of DeFi suggests a shift towards more sustainable financial mechanisms, in contrast to the speculative nature of meme coins.

Several blockchain projects have emerged as major beneficiaries of this sentiment shift. Berachain (BERA) and MegaETH (WETH) have gained traction. Kaito AI’s analysis highlights these as top mindshare gainers.

However, for Berachain, social dominance or consumer awareness is likely ascribed to its recent airdrop and the subsequent listing on Binance and Bitrue. In a statement shared with BeInCrypto, Bitrue committed to supporting the developers on Berachain, a blockchain that introduces a unique Proof-of-Liquidity (PoL) consensus mechanism, believed to be superior to Proof-of-Stake (PoS).

“To celebrate this milestone, Bitrue is rolling out two special events for the exchange’s users. First, Power Piggy Listing: BERA will be available in Power Piggy, Bitrue’s flexible investment product, at 10% APR starting February 6th at 14:00 UTC. Secondly, Deposit Contest: Users who deposit BERA on Bitrue can win rewards based on their deposit amounts,” Bitrue told BeInCrypto.

However, despite the excitement, Berachain’s token price has seen downward pressure due to post-airdrop selling, demonstrating that speculative dynamics are still at play.

Beyond Berachain, MegaETH, Initia, and Monad have captured the market’s attention. These projects focus on technical advancements in scalability, DeFi, and blockchain efficiency. DeFi expert Ignas said this renewed enthusiasm mirrors the early 2020/21 cycle. Then, projects with substantial technical innovation garnered significant hype.

“Technically innovative launches are getting hype again…It’s not just your Degen monkey brain blindly aping into meme coins or simping for a new Celeb Coin – your analytical & research skills can be put to action again,” Ignas wrote.

Investors are now diving deeper into protocol mechanisms, farming strategies, and long-term sustainability rather than unquestioningly speculating on short-lived trends.

Meme Coins Lose Ground as Investors Seek Fundamentals

Amid investors’ shifting focus, the meme coin market cap is declining, with attention shifting towards projects with technical value. Previously, the speculative fervor around meme coins would drive short-term rallies. Now, their lack of fundamental innovation has resulted in diminishing investor confidence.

Crypto executive Tarun Gupta acknowledges the cultural shift. He cites real growth and innovation in protocols like Fluid, Balancer V3, Uniswap, and Ondo Finance.

This maturation of the crypto market indicates that investors are beginning to prioritize real-world applications and financial sustainability over short-term speculative trading. It aligns with recent insights from Glassnode, suggesting that this shift is not accidental but rather a reflection of a more sophisticated investor base.

Retail holders today exhibit a greater understanding of blockchain technology and market changes than in previous market cycles. Rather than chasing meme coins for quick profits, investors are conducting in-depth research on emerging protocols. They also engage with projects through governance and community-building initiatives.

Moreover, industry observers like Ignas highlight that projects rewarding community engagement—such as MegaETH and Berachain—are gaining traction. On the other hand, meme coin traders are often excluded from such incentives.

“Is it just me? We have always learned a few lessons on how to reward the community: Both Bera and MegaETH rewarded value-adding community members. It pays to support projects at an early stage via testnet or simply yapping on X. Notice how Meme coin traders didn’t make it into the whitelist/airdrop for either? I also feel that those who burnt badly with altcoins are either already sold what’s left to stablecoins or consolidating in coins they truly believe in,” Ignas added.

Despite these positive developments, the shift toward technically novel altcoins does not guarantee sustained market stability. While many investors are moving toward high-tech projects, the crypto market remains volatile and sentiment-driven. The market could pivot back to meme coin speculation at any moment, particularly if broader macroeconomic conditions turn unfavorable.

Additionally, while DeFi and RWA tokenization are gaining traction, challenges remain regarding regulation, security, and scalability. Investors must conduct their research.

Crypto analyst ProjectSyndicate has made a bullish case for the XRP price, which he predicts could record 40% gains soon enough. The analyst also revealed the price level, which he believes is ideal for market participants to buy and hold XRP. 

XRP Price Eyes 40% Gains As Analyst Reveals Key Level

In a TradingView post, ProjectSyndicate predicted that the XRP price could witness a 40% move to the upside soon enough. This came following his analysis of XRP’s 4-hour chart. He noted that the outlook remains bullish despite the current pullback in progress. The analyst added that buying low is still a perfect trade setup with low risk. 

Related Reading

Project Syndicate remarked that the price is currently in correction mode after the retest of the all-time high. He added that there is limited upside at the current market price of $2.50. In line with this, he asserted that the pullback isn’t complete and predicted that XRP could still drop to as low as $2 before it records the 40% gains that he predicted. 

Based on his strategy of buying low, he recommended that market participants should look to buy and hold the crypto when its price drops to $2. He also advised that they should take profit when XRP records the 40% gains as it rebounds to $2.80. 

The XRP price has suffered one of the worst pullbacks among the major caps amid the current bearish sentiment in the crypto market. As a result, XRP has also lost its spot as the third-largest crypto by market cap, dropping to number four behind USDT. 

However, amid this pullback, crypto analyst ColdBloodedCharter has also stated that now is a great opportunity to accumulate XRP. He highlighted $2.50, between $2.25 and $2.30, and between $1.90 and $2 as buy-the-dip levels that “make sense.”

This Pullback Could Be The Final Low Before Liftoff

In an X post, crypto analyst CasiTrades raised the possibility of this pullback being the final low before a price liftoff. She asserted that there has been no change to the overall bullish setup on XRP, although the crypto is now targetting Wave 3 down extensions at $2.16, $1.87, and $1.57 for the next major support. 

Related Reading

The crypto analyst opined that the XRP price is in the fifth wave of C within an ABC pattern for a large Wave 2. She added that the sell-off massively extended the asset past C targets, but the pattern still needs to be completed. With this development, CasiTrades stated that this means that XRP could be at the final low before a massive Wave 3 up begins. She added that this would send the altcoin past previous all-time highs (ATHs) with minimal resistance. 

At the time of writing, the XRP price is trading at around $2.45, down almost 3% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Medium, chart from Tradingview.com

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.