Memecoins and AI tokens experienced a strong recovery earlier this week. However, memecoins have maintained their dominance during this recovery, with PEPE and WIF taking the lead. Following a recent market meltdown, Monday saw a rebound with memecoins and AI tokens leading the way. Among the top gainers on Tuesday were Dogwifhat (WIF) and Fetch (FET), both experiencing double-digit gains as Bitcoin (BTC) surpassed the $60K level. A market observer from Bluntz Capital responded to the recovery by highlighting memes and AI as the top leading narratives, advising investors to choose their fighters wisely. The recovery continued on Wednesday, with memecoins continuing to dominate the top gainers according to CoinMarketCap data. Pepe (PEPE) and Brett (BRETT) experienced gains of 12% and 18% respectively in the past 24 hours. However, CryptoQuant founder Ki Young Ju previously noted a decline in memecoin dominance within the altcoin market, expressing a "bearish" sentiment towards memes but remaining optimistic about BTC. The recent market decline resulted in significant losses for altcoins, with WIF experiencing a drop of over 48%.

Although WIF saw gains of 15% and 11% on June 24th and 25th, reaching $2, its market bias remained bearish, particularly on higher timeframe charts. On the other hand, some memes, like PEPE, exhibited a bullish bias and a potential for further recovery. PEPE was above its short-term trend, 50-day EMA, and closed above a lower low of $0. 000012. To further assess Bluntz Capital's assumption, AMBCrypto analyzed Open Interest (OI) rates, revealing that memes ranked second at 7. 5% based on Coinglass OI data, indicating increased market liquidity. However, the AI segment ranked 17th. Among memecoins, PEPE, Dogecoin (DOGE), and WIF demonstrated the highest positive OI, suggesting excessive bullishness in these assets over the past 24 hours. Nonetheless, another market observer, Alex Kruger, viewed memecoins as a "joke" that primarily benefits insiders. Despite the decline in altcoin dominance, the meme segment still witnessed significant traction compared to the rest of the market in the past 24 hours.