The Dual Nature of Meme币 Market: Industry Catalyst or Market Destroyer?
Recently, there has been a viewpoint in the English community that Meme coins have ruined this bull market cycle. As an observer who has long advocated for "technology-driven and long-term values," I would like to objectively present a different perspective: Meme coins are not actually the destroyers of the market, but rather catalysts that accelerate the industry's maturity.
Revaluation of Meme Coin's Market Value
The current cryptocurrency market has shifted from a "technology-driven" stage to an "attention economy" phase. Meme coins are a typical manifestation of this transition. Traditional tech projects often require three to five years of development cycles to fulfill promises, while the market has lost patience and trust in waiting, creating an opportunity window for meme coins to quickly attract liquidity through short-term wealth effects.
Positive Pressure on Technical Projects
The rise of Meme coins has actually forced tech projects to undergo self-reform. The previous model of attracting investment through financing valuation, technical packaging, and concept piling has hit a dead end. Today's investors, after experiencing the "simple and straightforward, clear wealth effect" investment experience in the Meme coin market, are no longer willing to accept those technically complex projects that cannot deliver in the long term.
Expand Market Boundaries and User Base
No matter how sophisticated the technical narrative is, it can only attract a niche elite group that understands technology. However, large-scale adoption requires interaction methods that are simple, easy to understand, and can quickly form consensus. When a large number of ordinary users enter the crypto market due to Meme coins, some of them will inevitably conduct deeper ecological explorations, bringing an unprecedented incremental user pool to technical projects and effectively addressing the long-standing "user scarcity" dilemma faced by these projects.
Healthy Cycle of Market Heat
The Meme coin craze cannot cover the entire market cycle, but the market vitality it releases will benefit most of the crypto ecosystem. The nature of capital chasing profits determines that Meme coins cannot continuously generate wealth effects. When most people experience the duality of short-term wealth and zeroing out, they will naturally seek more balanced investment targets and gradually shift towards more stable investment directions.
At that time, those technological projects that truly solve practical problems, establish user stickiness, and have clear business models will welcome a valuation reconstruction, completing the transformation from concept to actual value. For technological projects, this is not the end, but the beginning of a phoenix rebirth.
Breaking the shackles of traditional financing models
The Meme coin market is essentially a complete reshuffle of the high-valuation, low-liquidity model dominated by traditional venture capital. In the past, the venture capital-led financing model created an unhealthy market structure of "high valuation, low liquidity," which generally faced declines after token generation events, leaving almost no space for ordinary investors to increase the value of their holdings and stifling the dreams of retail investors to become wealthy through crypto assets.
In contrast, despite the significant risks, Meme coins have revitalized market vitality with their transparency, simplicity, and equal participation for everyone, bringing the market back to a fairer and more transparent competitive environment. It is not difficult to find that the shrinking market space of some venture capital institutions or even their forced exit is closely related to the growing mainstream trend 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 disruptor or catalyst for the maturity of the encryption industry?
The Dual Nature of Meme币 Market: Industry Catalyst or Market Destroyer?
Recently, there has been a viewpoint in the English community that Meme coins have ruined this bull market cycle. As an observer who has long advocated for "technology-driven and long-term values," I would like to objectively present a different perspective: Meme coins are not actually the destroyers of the market, but rather catalysts that accelerate the industry's maturity.
Revaluation of Meme Coin's Market Value
The current cryptocurrency market has shifted from a "technology-driven" stage to an "attention economy" phase. Meme coins are a typical manifestation of this transition. Traditional tech projects often require three to five years of development cycles to fulfill promises, while the market has lost patience and trust in waiting, creating an opportunity window for meme coins to quickly attract liquidity through short-term wealth effects.
Positive Pressure on Technical Projects
The rise of Meme coins has actually forced tech projects to undergo self-reform. The previous model of attracting investment through financing valuation, technical packaging, and concept piling has hit a dead end. Today's investors, after experiencing the "simple and straightforward, clear wealth effect" investment experience in the Meme coin market, are no longer willing to accept those technically complex projects that cannot deliver in the long term.
Expand Market Boundaries and User Base
No matter how sophisticated the technical narrative is, it can only attract a niche elite group that understands technology. However, large-scale adoption requires interaction methods that are simple, easy to understand, and can quickly form consensus. When a large number of ordinary users enter the crypto market due to Meme coins, some of them will inevitably conduct deeper ecological explorations, bringing an unprecedented incremental user pool to technical projects and effectively addressing the long-standing "user scarcity" dilemma faced by these projects.
Healthy Cycle of Market Heat
The Meme coin craze cannot cover the entire market cycle, but the market vitality it releases will benefit most of the crypto ecosystem. The nature of capital chasing profits determines that Meme coins cannot continuously generate wealth effects. When most people experience the duality of short-term wealth and zeroing out, they will naturally seek more balanced investment targets and gradually shift towards more stable investment directions.
At that time, those technological projects that truly solve practical problems, establish user stickiness, and have clear business models will welcome a valuation reconstruction, completing the transformation from concept to actual value. For technological projects, this is not the end, but the beginning of a phoenix rebirth.
Breaking the shackles of traditional financing models
The Meme coin market is essentially a complete reshuffle of the high-valuation, low-liquidity model dominated by traditional venture capital. In the past, the venture capital-led financing model created an unhealthy market structure of "high valuation, low liquidity," which generally faced declines after token generation events, leaving almost no space for ordinary investors to increase the value of their holdings and stifling the dreams of retail investors to become wealthy through crypto assets.
In contrast, despite the significant risks, Meme coins have revitalized market vitality with their transparency, simplicity, and equal participation for everyone, bringing the market back to a fairer and more transparent competitive environment. It is not difficult to find that the shrinking market space of some venture capital institutions or even their forced exit is closely related to the growing mainstream trend of Meme coins.