The memecoin sector seems to be in a new era, with Base at the forefront of the shift in capital flow from the smart money.
PEPE has been among the best-performing memes on the Ethereum [ETH] mainnet, but activity appeared to be shifting to its Layer 2 (L2) solution, the Base Chain.
Is smart money shifting their preference in the memecoin sector?
Is capital rotating from PEPE to Base Chain memes?
Pepe [PEPE] rose by 12% as of press time. On the other hand, Base Chain memes gained significant market value as BRETT, TOSHI, and DEGEN led the trend with 37%, 16%, and 22%, respectively.
Source: CoinGecko
The price action of PEPE was trading in a descending channel as demand and capital inflows resumed slightly. This was evident from the MACD and Chaikin Money Flow (CMF) readings.
PEPE broke above the mid-level of the channel, but its gains were less compared to what was in the Base Chain memes.
Brett [BRETT] broke out from its channel, as indicated in the chart; thus, its momentum eclipsed that of PEPE.
Source: TradingView
The gains in price in the past 24 hours were more on Base Chain memes like SPX6900 [SPX], which surged by about 21%, leading the top 100 cryptos by market cap.
This was an indication of capital inflow and, in particular, leading the memecoin sector. Thus, Base Chain memecoins seem to be the next PEPE for the Ethereum ecosystem.
Top Base Chain memes: Next PEPE is…
The Base Chain was capped at about $2.41 billion after rising 19% during the day, as per Coinranking data. About 82% of these 732 memes were gainers, with a daily trading volume of $1.27 billion.
SPX was the top pick of this sector, seeing an increase of about 9.87% in capital inflow in six hours. There was more than $204K in netflows, per Nansen AI.
Zora [ZORA], BRETT, TOSHI, and Mogcoin [MOG] were the most trendy memes on the Base Chain. All of them rose by more than 15%, ranking 46th from a total of 77 categories in crypto and Web3, per Coinranking.
Source: Coinranking
Frog-themed memecoins in particular were shifting to the Base Chain, as the performance charts on CoinGecko showed.
PEPE was losing to BRETT and TURBO in this contest, as the latter two rose by 41% and 40%, respectively.
The two memecoins were deemed the next PEPE as smart money capital poured in. Turbo’s [TURBO] increase in smart money capital inflow was 25% but accounted for only $2.39K.
Source: CoinGecko
Smart money was diverting their capital to Base Chain memes, with the L2 solution seemingly giving users what they looked for in the ETH mainnet.
The ecosystem lowers the fees significantly, as they are relatively higher on the mainnet.
Total Base transactions surge
This was evident in the total transactions on Base, which were averaging 15 million from late October to late November. Base memecoins and NFTs were contributing to this figure.
Source: Dune
Notably, Base Chain meant that more U.S. investors were injecting capital into them, as it offers Coinbase integration.
Final Thoughts
- The next PEPE could be one of the Base Chain memes.Â
- Base Chain memes surge, leading the broader crypto market.Â