From investment fatigue to finding new opportunities
The crypto market has gone through several cycles since 2017, and investor sentiment has been constantly changing. From the ICO boom that broke out in 2017, to the cold winter of the entire market in 2018, to the rise of DeFi in 2020 and the outbreak of NFT in 2021, it can be said that there is an emerging track in each round. However, in this cycle, a very notable feature is that retail investors are gradually showing fatigue. The main reason is that the issuance methods and market performance of many projects have failed to deliver on the initial high expectations, leading to widespread aversion to VC-led projects.
In the past bull market cycle, VC dominated the main trend of the market. However, as time went on, many investors gradually felt tired, especially when faced with those low circulation and high FDV coins, the market seemed to be full of signs of over-hype. For retail investors, this situation is not friendly, coin issuance is the peak, and the subsequent price decline makes them feel like abandoned buyers.
At this time, the rise of Meme coin broke the original pattern and became a force against the trend. Unlike VC-led crypto projects, Meme coin has gained widespread attention with its anti-VC characteristics. For example, many memes such as BONK have attracted a large number of supporters with their unique self-deprecating culture. In this article, we will start with the rise of Meme culture and explore how the success of Meme challenges the traditional VC funding model? What opportunities and thoughts does it bring to investors?
Market Evolution: The Rise of Memes
The rapid rise of Meme Coin is an important phenomenon in the crypto market. While many traditional VC projects are facing difficulties due to insufficient liquidity or high valuations, Meme Coin has gained huge market attention with its low threshold and high community participation. For retail investors, Meme Coin brings more equal opportunities: they no longer need to rely on VC capital, but instead drive the projects growth through the power of the community and the market.
However, the rapid popularity of Meme coins also brings the risk of over-hype. In the eyes of some people, this phenomenon is full of speculation and cannot last long. In fact, the market performance of Meme coins often fluctuates, especially when the market pulls back, the prices of many Meme coins tend to fall accordingly.
But at the same time, we also see the power of New Money represented by Meme coins, which have attracted a large number of investors through strong community support and continuous innovative content. Especially in the Solana ecosystem, the transaction cost of Meme coins is low and efficient, which allows retail investors to enjoy a smoother trading experience. Therefore, the performance of Meme coins in the Solana ecosystem is particularly outstanding this time.
Meme’s core competitiveness – strong community power?
Meme coin can rise quickly in a short period of time, which is usually inseparable from strong community support. Unlike traditional VC-driven projects, the value of Meme coin is more reflected in the power of the community. A strong Meme coin community can attract more new users to participate through social media, activities and content creation, thereby driving the value growth of the project.
These communities are not just gathering places for investors, they are more like a huge consensus. In this consensus, the emotions and actions of all members are focused in the same direction, and everyone works together to promote the progress and development of the project. Everyone shares content and participates in activities through social platforms, driving the rapid growth of memes on Solana.
More importantly, the community members of Meme Coin tend to be extremely loyal. Behind every successful Meme Coin, there are countless community members who are willing to provide it with content and traffic. It is this spontaneous participation and support that makes the market performance of Meme Coin more dynamic and potential.
The future of meme: Beyond speculation, creating real value
Although Meme coins are currently mostly seen as short-term speculative tools, as market demand gradually changes, the future of Meme coins cannot be underestimated. The crypto market is paying more and more attention to the practical application and long-term value of projects, and if Meme coins want to gain a foothold in this highly competitive market, they must find a way to break through the existing framework and create actual value. In order for Meme coins to have a more stable future, they not only need to continue to rely on strong community power, but also must make more efforts in ecological construction and practical application.
Take the evergreen Meme project BONK as an example. By continuously expanding its application in the Solana ecosystem, BONK is gradually consolidating its value moat. All BONK ecological projects are regularly buying and destroying $BONK tokens, and the regular large-scale destruction of $BONK also reflects the communitys determination to firmly defend the coin price.
We can expect that such Meme coins in the future will no longer be simple cultural symbols, but projects that can provide long-term value to users and investors.
In addition, with the development of Web3 and the gradual maturity of the crypto market, Meme coin may also expand its application scenarios by combining with other fields. For example, Meme coin can provide more diverse values and functions by combining with NFT, DeFi, games and other fields. This will help Meme coin get rid of the label of speculation and become a crypto asset with real market potential.
Under the new regulatory environment, it is believed that meme coins like $BONK will be listed on ETFs in the near future.
The power of collective action
In summary, Meme coin has become a representative of the anti-VC and anti-conventional spirit, and it represents the rebellion of retail investors against the traditional VC model. Through Meme coin, ordinary investors are no longer passive receivers, but can unite to promote collective action and form new market rules.
The future Meme coin market will not only be a stage for short-term speculation, but also an ecosystem full of innovation, competition and opportunities. As long as we can stick to community-driven and value creation, Meme coins will no longer be a short-lived hot spot, but a force that cannot be ignored in the crypto market.
In this process, we need to not only reflect on the role of VC in the crypto world, but also think about how to make Meme Coin transcend the current wave of speculation and truly become a force that can change the rules of the market. Through continuous innovation and ecological expansion, Meme Coin is expected to become an emerging force in the crypto market, leading us to a more open, free and decentralized future.
