Ki-young-ju, founder and CEO of CryptoQuant, highlighted a significant change in the market. According to Ju, the dominance of meme coins in the altcoin market is declining, suggesting a transition from speculative play to a more fundamental approach reminiscent of previous phases of the market.
Ki-young-ju, founder and CEO of CryptoQuant, highlighted a significant change in the market. According to Ju, the dominance of meme coins in the altcoin market is declining, suggesting a transition from speculative play to a more fundamental approach reminiscent of previous phases of the market.
This change could mark the end of the meme coin craze that has captivated investors for the past few months.
Yuri Molchan
Ju clarified that his bearish stance is specific to meme coins, not Bitcoin. He remains long-term bullish on BTC, suggesting that while the hype around meme coins may be fading, fundamental assets like Bitcoin continue to have strong investment potential. This distinction is crucial as it indicates a broader market sentiment that seeks intrinsic value over speculative companies.
It can be argued that meme coins act as leveraged plays on their parent chains. For example, tokens like WIF and BONK are pegged to Solana (SOL), while Shiba Inu (SHIB) and PEPE are pegged to Ethereum (ETH). These assets often experience volatile price movements that reflect broader market trends, but with amplified effects.
Yuri MolchanHowever, the flow of capital into financial markets typically shifts funds from less risky assets to more speculative ones. This cycle often leads to inflated valuations of meme coins, followed by significant capital withdrawals, causing market-wide declines.
The declining dominance of meme coins may indicate the maturation of the market, where investors are beginning to prioritize assets with strong fundamentals over high-risk, high-reward plays.
