The crypto market is full of coins that have gained a lot of value since mid - October. Along with Bitcoin, several coins keep forming higher - highs in the uptrend of the crypto ecosystem. Even though the whole market has not entered to the zone of up - only mode, many crypto categories have been receiving enough attention.
The rise of memecoins and the "gamble" side of the pumpfun have driven the liquidity to the Layer 1s which host the meme projects such as SUI and SOL and the flow of the money has been on the side of these projects due to their get - rich - quick narrative behind.
When we focus on the reasons that push the memecoins further than the other projects, you will notice a similar pattern with the last bull markets:
1 - The other cryptocurrencies are seen as if they are already too expensive compared to their prices in the earlier bull markets in 2019 and 2021.
2 - The existing projects have reached a decent market capitulation and it is not easy for them to rise 2x - 5x - 10x from here.
3 - The approach and the boost by Elon Musk over DOGE and other memecoins since it enjoys memes on X platform.
4 - Get Rich Quick! This has been the driven power of the crypto market before the debut of ETFs, institutional and governmental investments.
5—Shilling campaigns and exposure on the timeline can be strong reasons to manipulate crypto investors' investments, especially those of newbies.
Do you notice something abnormal?
I firmly believe that the memecoin trend was to happen and now we are experiencing it. Yet, the sides of DeFi, GameFi and Layer 2 are almost forgotten by the investors though they are still far away from their All Time High levels.
The trend has to shift as the market will reach a point of satisfaction in the memecoins' rise. When we start to witness the paradigm shift, the Ethereum Layer 2 projects and the bluechip DeFi protocols will start their show.
Of course each market cycle has its own dynamics. However, the unwritten rules in the markets never change. After the point of saturation, the trend of something new has to come out. The next one(s) may never be as hot as memecoins but they will do their job in their own styles.
What do you think about the reasons for the rise and the future of memecoin trend?
Share your thoughts below 👇
Hive On ✌️