Essentially the most profitable cryptocurrency merchants are nonetheless chasing fast earnings in memecoins, regardless of indicators that the broader “supercycle” for the speculative property could also be winding down. The shift follows latest disappointment tied to memecoin launches related to US President Donald Trump.
The business’s most profitable cryptocurrency merchants by returns — tracked as “sensible cash” merchants on Nansen’s blockchain intelligence platform — proceed attempting to find fast memecoin returns.
Whereas rising stablecoin holdings present elevated warning, sensible cash stays open to speculative performs, according to Nicolai Sondergaard, a analysis analyst at Nansen.
“There was the latest meme surge and sensible cash is at all times completely satisfied to capitulate on that. However they’re additionally completely satisfied to rotate out of those shortly as properly,” he mentioned throughout Cointelegraph’s Chainreaction dwell present on X.
“The latest meme frenzy was only a enjoyable play they labored on, whereas the broader market is checking out the course as a result of memecoins aren’t essentially affected by the identical macroeconomy as Bitcoin and Ethereum,” he added.
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The analyst’s insights got here per week after a savvy dealer turned an preliminary funding of simply $2,000 into $43 million with the favored Pepe (PEPE) cryptocurrency, Cointelegraph reported on March 30.
Savvy Pepe dealer, transactions. Supply: Lookonchain
Nonetheless, the dealer didn’t handle to promote the highest however nonetheless made a realized revenue of over $10 million, regardless of Pepe’s over 70% decline from its all-time excessive.
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Trump token launch might have ended memecoin “supercycle”
The launch of the Official Trump (TRUMP) memecoin on Jan. 18 might have signaled the top of the memecoin “supercycle.”
“Pump.enjoyable has been synonymous with the “memecoin supercycle,” because it accounts for over 70% of tokens launched on Solana, in keeping with a Binance analysis report shared with Cointelegraph.
Pump.enjoyable utilization metrics. Supply: Binance analysis report
The memecoin launchpad’s weekly utilization metrics peaked on the week of Trump’s inauguration and have since declined. Whole lively wallets on Pump.enjoyable fell from 2.85 million on the week of Jan. 20 to only 1.44 million as of March 31.
The decline is principally attributed to a decay in investor sentiment, a Binance spokesperson informed Cointelegraph, including:
“Market sentiment additionally seems to have shifted amid unverified reviews of insider buying and selling linked to subsequent high-profile tokens resembling $MELANIA and $LIBRA.”
“Broader macroeconomic uncertainty, together with volatility pushed by international tariff insurance policies, might have additional dampened speculative urge for food for memecoins extra usually,” the spokesperson mentioned.
TRUMP/USD, all-time chart. Supply: CoinMarketCap
In the meantime, the TRUMP token is down greater than 87% from its peak of $75.35, reached on Jan. 19. The token fell over 8% prior to now week, CoinMarketCap information shows.
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