Meme Coin: Catalyst and Industry Maturity Accelerator for the Crypto Market
Recently, there is a viewpoint that Meme coins have ruined the current market cycle. Although I have always emphasized the importance of "technical narrative + long-termism", from an objective perspective, Meme coins are not market destroyers, but rather catalysts that accelerate industry maturity.
The Market Role of Meme Coins Reshaped
The market has currently shifted from a "technology is king" phase to a "attention is king" phase, and Meme coins are the best embodiment of this transition. Most technical projects require years to fulfill their roadmap commitments, while the market has lost patience waiting. This environment creates an opportunity window for Meme coins, allowing them to attract liquidity through short-term wealth effects.
Self-Innovation of Technical Projects
The rise of Meme coins has actually forced technology projects to undergo self-reform. The previous model of attracting investment through financing valuation, technical packaging, and concept stacking has entered a dead end. After experiencing returns from Meme coins that are "simple and straightforward, with a clear wealth effect", investors are no longer willing to accept projects that are "technically complex but have no substantial delivery in the long term", which compels technology projects to return to genuine value delivery.
Expand Market Boundaries and User Base
No matter how sophisticated the technical narrative is, it can only attract a specific elite group. Mass adoption requires an interaction method that is simple, easy to understand, and can quickly form consensus. Meme coins have brought a large number of new users to the crypto market, and some of them will inevitably engage in deeper ecological exploration, providing an unprecedented incremental user pool for technical projects and solving the long-standing "user scarcity" problem faced by technical projects.
The Natural Flow of Market Heat
The meme craze is unlikely to run through the entire market cycle, but the market vitality it releases will benefit most of the crypto ecosystem. The nature of capital's pursuit of profit determines that meme coins are difficult to sustain a wealth effect. After most people experience the duality of short-term wealth and going to zero, they will naturally seek investment targets with a more balanced risk-return profile.
At that time, those technological projects that truly solve practical problems, establish user stickiness, and possess clear business models will welcome a valuation reconstruction, completing the transformation from concept to actual value. For technological narratives, this is not the end, but the beginning of a rebirth through nirvana.
Restructuring of Market Structure
Meme coins have actually undergone a complete reshaping of the traditional "high valuation, low circulation" model. In the past, the financing model dominated by investment institutions created a distorted market structure, resulting in a general decline after the projects went live, leaving almost no room for ordinary investors to hold coins for appreciation, stifling the crypto dream of retail investors to become wealthy through holding coins.
In contrast, despite the enormous risks, the Meme Coin, with its transparent, simple, and equal participation by all, has reactivated the market and returned the market to a more fair and transparent playing field. The shrinking or even withdrawal of the market space of some investment institutions may be related to the trend of increasing mainstreaming of meme coins.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Meme coin: Market catalyst or industry maturity accelerator?
Meme Coin: Catalyst and Industry Maturity Accelerator for the Crypto Market
Recently, there is a viewpoint that Meme coins have ruined the current market cycle. Although I have always emphasized the importance of "technical narrative + long-termism", from an objective perspective, Meme coins are not market destroyers, but rather catalysts that accelerate industry maturity.
The Market Role of Meme Coins Reshaped
The market has currently shifted from a "technology is king" phase to a "attention is king" phase, and Meme coins are the best embodiment of this transition. Most technical projects require years to fulfill their roadmap commitments, while the market has lost patience waiting. This environment creates an opportunity window for Meme coins, allowing them to attract liquidity through short-term wealth effects.
Self-Innovation of Technical Projects
The rise of Meme coins has actually forced technology projects to undergo self-reform. The previous model of attracting investment through financing valuation, technical packaging, and concept stacking has entered a dead end. After experiencing returns from Meme coins that are "simple and straightforward, with a clear wealth effect", investors are no longer willing to accept projects that are "technically complex but have no substantial delivery in the long term", which compels technology projects to return to genuine value delivery.
Expand Market Boundaries and User Base
No matter how sophisticated the technical narrative is, it can only attract a specific elite group. Mass adoption requires an interaction method that is simple, easy to understand, and can quickly form consensus. Meme coins have brought a large number of new users to the crypto market, and some of them will inevitably engage in deeper ecological exploration, providing an unprecedented incremental user pool for technical projects and solving the long-standing "user scarcity" problem faced by technical projects.
The Natural Flow of Market Heat
The meme craze is unlikely to run through the entire market cycle, but the market vitality it releases will benefit most of the crypto ecosystem. The nature of capital's pursuit of profit determines that meme coins are difficult to sustain a wealth effect. After most people experience the duality of short-term wealth and going to zero, they will naturally seek investment targets with a more balanced risk-return profile.
At that time, those technological projects that truly solve practical problems, establish user stickiness, and possess clear business models will welcome a valuation reconstruction, completing the transformation from concept to actual value. For technological narratives, this is not the end, but the beginning of a rebirth through nirvana.
Restructuring of Market Structure
Meme coins have actually undergone a complete reshaping of the traditional "high valuation, low circulation" model. In the past, the financing model dominated by investment institutions created a distorted market structure, resulting in a general decline after the projects went live, leaving almost no room for ordinary investors to hold coins for appreciation, stifling the crypto dream of retail investors to become wealthy through holding coins.
In contrast, despite the enormous risks, the Meme Coin, with its transparent, simple, and equal participation by all, has reactivated the market and returned the market to a more fair and transparent playing field. The shrinking or even withdrawal of the market space of some investment institutions may be related to the trend of increasing mainstreaming of meme coins.