Memecoins
Meme Coins Cements Status of Asset Class Amid Founder Fund Seizures
The current crypto market cycle, which is undergoing a sharp pullback, has been largely driven by coin mania and Bitcoin ETF hype.
On May 1, economist and trader Alex Krüger shared his thoughts on what has been a rather bizarre crypto market cycle.
Meme coins dominated the narrative, alongside Bitcoin after the ETF launched, he observed.
However, most of them have now been abandoned or gone to zero and coin scams were common in the market. Solana and basic networks.
Nonetheless, large-cap meme coins “rank among the best performers of the year, still posting significant returns despite the correction,” he said before adding.
“Meme coins have established themselves as a viable asset class in their own right.”
Coin Madness
According to CoinGecko, the total market capitalization of all meme coins is around $46 billion, which is more than Ripple (XRP) and Cardano (ADA) combined. They represent around 2% of the total crypto market.
However, there is a dark side to this madness, as the market “started to become flooded with both fraudulent coin launches and founders grabbing the money around February,” he said. observed Kruger.
“These founders are focused on making money quickly and generating short-term hype rather than longevity.”
They have also caused division within the crypto community, with some believing they bring value to the ecosystem, while the opposing view is that meme coins undermine the ideals and purpose of crypto.
The trader also said there are “virtually no new retail businesses entering the crypto space.” It was mainly ETF Buyers and “participants in the previous cycle are redeploying and moving out of the risk curve.”
The feeling collapses
Cryptocurrency Market Sentiment fell, with Bitcoin’s correction reaching 23% yesterday, below $57,000.
However, this decline was expected. This has happened several times before and may well happen as low as 30%. Fellow trader Bob Loukas saw the irony.
Bitcoin Investor ‘CRG’ said nothing has changed at the macro or fundamental level, adding:
“IMO, BTC is nowhere finished and will cost over $100,000 much sooner than expected. This is when the real gains in altcoins will be made.
When this happens, for better or worse, meme coins are likely to be unleashed again.