The meme era is not over, but please keep your profits and don’t play with fire
Author:Lavina
Compiled by: Xiaobai Navigation coderworld
Memes are the main theme of this cycle. WIF and PEPE had a glorious time together.Keep setting records,Create a climaxHowever, with DeFi and other fundamental narratives retaking dominance, is the meme game over? Let’s look at a few indicators to find out.
Memes dominate
In the currentcryptocurrencyMemes is undoubtedly one of the focuses in the cycle. Although the dominance of Memes in the major altcoin markets has declined recently, this does not mean that the game of Memes is over. From many perspectives, the Memes market still has its unique vitality and potential.
Ki Young Ju of CryptoQuant said:"Pack up, guys, it's over."
(source:Twitter )
What does Duck think?
The analyst who goes by the pseudonym DonAlt, who has accurately predicted market bottoms and tops in the past, by going the other way, doesn’t really like Memes. Despite his extreme opposing views, he still maintains the same opinion. Regarding WIF,He recently said:"It looks terrible. Say what you will about me being biased, a down is a down."
(source:X)
He did enjoy profits from his short position when the coin began to plummet. However, he has since exited the market, claiming that he did not want to “kill” the coin. Prevention is always better than cure, and it doesn’t hurt to be warned not to be targeted by “Moon Boy,” right?
Despite DonAlt’s extremely bearish stance, he did not rule out the possibility that Memes could rise again. If Bitcoin eventually reverses its trend, Memes will follow.
However, if the bear market comes again, then memes holders will have to strap inSafetyIn the words of DonAlt:“I don’t disagree with this. If Bitcoin breaks out of the range and moves upward, your meme will perform well, but it will be very cruel in the tail market.”
Enter Solana
Most of the memes pushed offshore in this cycle are based on Solana. In fact, the number of coins minted on this chain has surpassed other chains such as BNB, Ethereum, and Polygon.
If one were to make a comparison, it would not be a stretch to claim that Ethereum’s NFT dominance in the last cycle was replaced by Solana’s Memes dominance in this cycle. In fact, it became the chain of choice for retail investors and Memes traders this cycle.
A recent report from Pantera Capital states:“By May 2024, Solana will account for 10% of all new DEXsToken85%, up from 50% a year ago.TokenThe growth reflects its strength in retail usage, driven by memecoin activity.“
(source:Pantera Capital)
As the memes craze fades, will Solana suffer? To a certain extent, yes. However, Solana does have fundamentals to fall back on.
Several consumer-facing applications, DePin projects, content distribution applications, CLOB-based DEX and gaming applications are being developed on theBlockchainSo even if Memes takes a break, Solana won’t be left alone.
According to Pantera Capital, Solana’s future is undoubtedly secure. Solana’s monolithic architecture has a product roadmap that focuses on optimizing itsBlockchainEach component ofApple in macOS approach to its vertically integrated hardware and software stack.
It’s the season for “debate”
Political finance memes are expected to take center stage again later this month, with the debate between US President Joe Biden and presidential candidate Donald Trump set to air on June 27.
Already passedCoin TossThe podium positions and order of closing statements are determined. As debate day approaches, volatility is expected to increase in the political finance memes basket, including Jeo Boden [BODEXiaobai NavigationN], Doland Tremp [TREMP], Super Trump [STRUMP], MAGA [TRUMP], etc.
Analysts at Bitfinex say that the capital gains tax discussion in general andcryptocurrencyTax policy can have a significant impact on market impact. They said:“During and after the debates, there could be significant market volatility for ‘political finance’ tokens depending on how these tokens perform, as these tokens themselves become speculative assets with respect to the election outcome.”
Therefore, the memes season is not over yet and we can expect the market to experience an influx of volatility in the period leading up to November.
Memes Liquidity
Despite the decline in dominance, it is worth noting that the liquidity of Memes is currently at its peak. According to Kaiko data, the 1% market depth of DOGE, SHIB, PEPE, WIF, BONK, GROK, BABYDOGE, FLOKI, MEME, HarryPotterObamaSonic10Inu and HarryPotterObamaSonic recently created a record high of $128 million.
(source:Kaiko)
According to experience,The higher the liquidity, the healthier the market.Because large trades can be executed without having to worry about price impact. Looking back, this has tightened the bid-ask spread. However, the transaction costs of memes are still high.exchange, the bid-ask spread is over 2 basis points, which supports the above narrative. Kaiko’s report states“While more and more market makers are trying to provide liquidity for these tokens, they are still considered riskier due to their high volatility.”
This isn’t a “magic trick” situation. Market participants haven’t completely stopped trading memes. They’re just trading them with caution. The continued influx of liquidity despite the decline in dominance suggests that this group of tokens has not been abandoned.
The rule is to never "marry" your memes, always remember they can go south. Play with fire like a trader, but make sure you keep the profits in your hands and don't burn your fingers.
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The article comes from the Internet:The meme era is not over, but please keep your profits and don’t play with fire
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