Markets

This is why meme coins signal the end of the cryptocurrency bull run

Published

on

Decentralized Finance (DeFi) Analyst Stacy Muur warned that the rise in popularity of meme coins could signal the end of the current cryptocurrency bull run.

Following Messari’s meme coin investing research, Muur speculates that investors should consider locking in profits.

Because Stacy Muur hypothesizes the top of the market

Messari’s analysis reveals a pattern in cryptocurrency markets that typically begins with major investments in crypto infrastructure projects.

“This makes a lot of sense: cryptocurrency bull markets usually start with BTC or smart contract platforms due to factors like liquidity, risk-reward profiles, and technological breakthroughs. These assets signal that “cryptocurrencies are not dead,” attracting speculation and development”, Muur explained.

The investment trend then shifts towards more volatile assets such as meme coins, known for their potential quick profits. However, Muur warns that meme coins are usually the first to fall, marking the end of a speculative wave across the cryptocurrency spectrum.

To know more: 7 Hot Meme Coins and Altcoins That Are Trending in 2024

Comparing the meme coin cycle and crypto infrastructure projects. Source: Messari

Currently, Muur notes a decline in meme coin activity, indicating reduced trading volume on platforms like pump.fun, which supports the creation and trading of these assets.

“In their research, Messari suggests the following investment framework based on this model: Buy memes when they are classic DeFi/cryptocurrencies begin to increase. Then, move your entire portfolio to cash and freeze trades when meme coins decline beyond a threshold,” Muur elaborate.

Muur’s thesis has sparked debate among his followers. Some critics in his thread on X (formerly Twitter) argue that the current cycle is a departure from the past.

“The framework of the entire thesis is wrong. Memes were the first to stimulate this cycle, unlike in the past. We are now entering a cycle of increased liquidity with interest rate cuts. We are nowhere near the peak,” an X user She said.

Other analysts share further skepticism. This month, BeInCrypto reported insights from an analyst who highlighted three main market signals:

  1. Celebrity endorsements for meme coins.
  2. A surge in new meme coins and,
  3. Lots of PnL screenshots on social media.

The growing involvement of celebrities in meme coins, with figures such as Caitlyn Jenner, Iggy AzaleaAND Andrea Tate the launch of their tokens, mirrors past market peaks in 2017 and 2021.

To know more: Crypto Scam Projects: How to Spot Fake Tokens

Furthermore, the creation of over one million new meme coins in April alone indicates extreme market speculation. This situation, combined with the widespread sharing of PnL screenshots, suggests that the market may be close to a turning point.

Disclaimer

In compliance with Trust Project guidelines, BeInCrypto is committed to providing impartial and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content. Please note that our Terms and conditions, Privacy PolicyAND Disclaimer They have been updated.

Fuente

Leave a Reply

Your email address will not be published. Required fields are marked *

Información básica sobre protección de datos Ver más

  • Responsable: Miguel Mamador.
  • Finalidad:  Moderar los comentarios.
  • Legitimación:  Por consentimiento del interesado.
  • Destinatarios y encargados de tratamiento:  No se ceden o comunican datos a terceros para prestar este servicio. El Titular ha contratado los servicios de alojamiento web a Banahosting que actúa como encargado de tratamiento.
  • Derechos: Acceder, rectificar y suprimir los datos.
  • Información Adicional: Puede consultar la información detallada en la Política de Privacidad.

Trending

Exit mobile version