Key Crypto Trends to Monitor in Mid-March

This week, attention centers on perpetual tokens, coins with strong connections to the USA, and the volatile meme coins as vital trends in the cryptocurrency market.

Perpetual Tokens

After a challenging week, tokens such as HYPE and WOO have experienced declines exceeding 12%. However, robust trading activity and significant revenue generation hint at a possible recovery. Perpetuals refer to cryptocurrencies related to perpetual futures contracts, offering traders the ability to maintain positions without expiration.

These platforms employ a funding mechanism which ensures that contract values align closely with the spot market while allowing for leveraged long or short positions. Despite the recent downturn, activity in perpetuals remains strong, reflected in high transaction volumes and fees across leading platforms.

Hyperliquid is currently leading the perpetuals market with impressive fee generation of $12 million in the past week, outperforming other significant decentralized finance applications. Yet, this dominance opens the door for new competitors to enter the scene. For instance, Arkham has recently surged 14% in the last 24 hours, indicating growing trader interest in alternative perpetuals projects.

Made In USA Coins

Cryptocurrencies categorized as Made In USA have faced considerable decline, with PI decreasing by 22.6% and ADA and HBAR seeing losses of 18.9% over the past week. These assets are closely tied to the United States either through their founding teams or corporate headquarters.

As these coins often come under regulatory scrutiny while benefiting from institutional backing, they remain sensitive to macroeconomic shifts. Recently, the stock market witnessed a staggering $4 trillion loss due to political developments, which in turn affects the crypto market significantly.

The recent broader market correction raises hopes for a rebound, especially if investors regard this dip as an overreaction. Historically, sharp declines in both the crypto and stock markets have led to robust recoveries when macroeconomic fears start to ease.

Meme Coins

Meme coins consistently represent one of the most erratic narratives in the crypto landscape. They tend to demonstrate the most significant price increase during bullish phases, followed by steep declines during bearish trends. The past week showcased this pattern, with Dogecoin (DOGE), the largest meme coin by market capitalization, falling over 17%.

Other noteworthy meme coins like TRUMP, PEPE, and BONK have also seen losses, ranging from 10% to 14%. However, should the market begin to rebound, these meme coins are usually among the first to recover, owing to their speculative nature and the rapid influx of retail interest.

When the market rebounds, it often results in renewed enthusiasm and aggressive buying, giving rise to substantial recoveries in meme coins. If sentiment plays in their favor and liquidity returns to the markets, DOGE, TRUMP, PEPE, and BONK could quickly recoup losses, creating another surge in the meme coin market.