1. Evolution of investor strategies in the crypto market: from diamond hands to flexible trading
Since its inception, the crypto market has been known for its extremely high volatility, which once brought huge wealth effects to early investors. However, as the market continues to develop and mature, this feature is no longer a simple opportunity, but more like a double-edged sword. The simple strategy of the past - buying altcoins at a low price and holding them for a long time, waiting for the bull market to make a profit - is no longer applicable in todays complex and dynamic market environment. The current crypto market is more like a huge casino full of uncertainty and competition. Investors need to have unprecedented keen insight and rapid adaptability to gain a foothold in this game.
Unlike the early markets with value storage and decentralized vision as the core narrative, todays cryptocurrency ecosystem has become more diversified and fragmented. In recent years, emerging fields have emerged one after another, from Meme coins (such as Dogecoin and Trumpcoin) to the on-chain of real-world assets (RWA), from the combination of artificial intelligence (AI) and blockchain to the evolving DeFi (decentralized finance) applications, to the art, games and practical scenarios of NFT (non-fungible tokens), each of which is competing for investors attention and capital. This diversified ecosystem brings more opportunities, but also makes the market more complex and unpredictable.
For example, in early 2025, the eponymous presidential meme coin launched by US President Trump before he officially took office attracted a large number of new users to the market and became a hot spot in the short term. However, this explosive attention also caused a blood-sucking effect on many traditional altcoins, causing their market value to shrink significantly. Another typical example is that the launch of Berachain attracted huge capital inflows, but it had an impact on the Abstract ecosystem. After countless market baptisms, investors realized that in such a dynamic and unpredictable market, the wisest approach is to accept volatility as the norm in the market. And with the continuous emergence of new currencies, new chains, and new projects, this volatility may further increase.
Against this backdrop, investors have to readjust their strategies; some choose to increase their holdings of Bitcoin (BTC) and stablecoins to hedge against market risks; others prefer to seize market volatility opportunities through short-term trading.
The current cryptocurrency cycle is full of unprecedented challenges because there is a greater sense of uncertainty than ever before in the market. This uncertainty mainly stems from the fact that even for popular altcoins, investors do not have enough confidence that they will rebound after experiencing a sharp drop.
In past market cycles, such as 2017 and 2021, investors were generally confident that altcoins would recover in value as the market cycle recovered. Many of the coins that gained early attention tended to maintain their market position until the end of the cycle. However, this cycle has performed completely differently. Narratives in the market have become more short-lived and fragmented, and investors confidence in bottom fishing has been greatly weakened. The narrative of a coin may collapse in a short period of time, causing its value to quickly return to zero. This phenomenon has made investors more cautious, realizing that relying solely on narratives or market sentiment is no longer sufficient to support long-term investment decisions.
This shift also reflects the change in the mentality of market participants: from the past diamond hands (referring to investors who refused to sell their assets even in the face of market volatility and sharp price drops) to more pragmatic opportunists. The goal of investors is no longer to find the next thousand-fold coin, but to find stable returns in a highly volatile market through flexible trading strategies.
2. Market fragmentation and the rise of small cycles
Why has the crypto market seen such significant changes? What are the market reasons behind this?
Unlike the past few cycles, the current cryptocurrency market has become highly fragmented and is no longer dominated by a single narrative or trend. Mainstream assets such as Bitcoin (BTC) and Ethereum (ETH) are still considered safe havens by many investors, especially when the market is turbulent, as their stability and relatively mature ecosystems have attracted a lot of funds. However, the growth potential of these mainstream assets has been greatly weakened, making it difficult to meet the needs of investors who seek high multiples of returns. Because of this, the markets attention has gradually been dispersed to more emerging fields and hot narratives, giving rise to multiple independent small cycles.
These small cycles often revolve around a popular narrative and quickly attract the attention of the market. For example, in the fourth quarter of 2024, AI concept tokens triggered a sensational market boom. Driven by the rapid development of artificial intelligence technology, such tokens attracted a large amount of capital in a short period of time, and the prices of many projects hit record highs in a very short period of time. However, as the narrative gradually cooled, market enthusiasm quickly faded, and the prices of most projects fell sharply from their highs, and even completely lost the attention of investors.
Similar situations frequently occur in other fields. For example, GameFi and NFT markets were highly sought after in previous cycles, but now face the same dilemma. Many projects that were considered revolutionary in the early days found it difficult to maintain sustained user growth and market popularity, and eventually stagnated or even declined. All these phenomena show that the fragmentation of the market is not only reflected in the diversity of narratives, but also in the rapid switching of hot spots and the shortening of life cycles.
This fragmented market environment presents investors with two main challenges:
How to identify emerging trends with real potential: The life cycle of market hotspots is getting shorter and shorter, and investors need to be more sensitive to capture these opportunities.
How to manage investment risks: A seemingly promising project may collapse within a few days, and investors must adopt a more cautious position management strategy.
In addition, the rise of small cycles also means that the markets liquidity is being dispersed into multiple areas. For example, in a period of time, funds may be concentrated in the Meme coin market, and in the next stage, they may turn to AI-related tokens. This rapid change in capital flow further exacerbates market volatility, forcing investors to constantly adjust their strategies to adapt to the new environment.
3. The rise of Meme coins: from entertainment to mainstream
In this fragmented and rapidly changing market context, the rise of Meme coins has become an intriguing phenomenon. As one of the most entertaining, viral and controversial asset classes in the crypto market, Meme coins were initially just an extension of meme culture or jokes, and were even regarded by many as a synonym for speculative bubble. However, as the market continues to evolve, Meme coins have transformed from a simple joke to a multi-billion dollar market, and have become an important part of the cryptocurrency ecosystem that cannot be ignored in 2025.
There are two key factors behind the success of Meme Coin:
Strong community driving force: Meme coins usually rely on vibrant communities that drive the price of coins through social media, viral marketing, and collective action. The high degree of interaction and cohesion among community members enables Meme coins to attract a lot of attention in a short period of time and form a strong market influence.
Brand fun and emotional resonance: Many meme coins have established emotional connections with investors through humor, irony or cultural symbols. This emotional resonance not only enhances investors identification with the project, but also enables meme coins to stand out in the market and attract a large number of loyal fans. For example, some meme coins reflect social hot topics in a playful way and even become a cultural phenomenon.
Specifically, here are some representative cases of Meme coins:
Dogecoin (DOGE): As the pioneer of Meme coins, DOGE uses Shiba Inu as its mascot and has established an ecosystem full of charity spirit and tipping culture.
Shiba Inu (SHIB): SHIB has grown into a large ecosystem through ShibaSwap and multiple supplementary tokens.
Floki Inu (FLOKI): A meme coin named after Elon Musk’s pet Shiba Inu “Floki”, it has risen rapidly thanks to Musk’s influence and the broad support of the community, and has attempted to break the traditional limitations of meme coins by launching practical features such as FlokiFi and educational platforms.
PEPE Meme Coin: Based on the classic Pepe the Frog online emoticon package, this meme coin has won market support through emotional resonance with early Internet culture. Baby Doge Coin (BabyDoge): As the offspring of Dogecoin, BabyDoge has attracted a large number of novice investors through low-threshold and highly interesting marketing methods.
TRUMP Meme Coin: Trump-themed meme coins have attracted a lot of attention due to their controversial nature.
The integration of AI and Meme Coin ecosystem: a new collision of technology and culture
In recent years, the Meme coin ecosystem has begun to combine with AI (artificial intelligence) and other emerging trends, giving rise to a new batch of concept tokens. These tokens not only continue the entertainment of Meme coins, but also give them more practical value and narrative dimensions through technological and cultural innovation, injecting new vitality into the field of cryptocurrency.
AI16Z: The first DAO token operated by AI, by Marc Andreessen AI impersonator @pmairca Admin. Currently, the creators of ai16z have announced plans to develop ai16z into a Layer 1 of artificial intelligence agents.
Fartcoin (FART): A meme coin that combines artificial intelligence and meme culture. Its uniqueness lies in its NFT ecosystem, where users can generate unique themed NFTs with a breeding mechanism, similar to the early CryptoKitties. In addition, the Fartcoin community enhances interactivity by hosting meme competitions and green environmental protection activities (such as tree planting programs linked to token minting).
GOAT (Goatseus Maximus): A meme coin accidentally spawned by an AI-driven creative experiment, the project became popular due to the autonomous promotion of the AI robot Truth Terminal. Truth Terminal is a meme propagation experiment developed by Andy Ayrey and supported by venture capital firm Andreessen Horowitz (a16z).
PIPPIN: This token story combines creativity, technology, and community spirit. Initially, this AI-generated unicorn image was named Pippin by ChatGPT and then evolved into a meme coin on the Solana blockchain. This inspiration prompted creator Yohei to create his first Solana wallet, acquire tokens, and build Pippin into an AI-driven virtual influencer. Pippins community continues to grow by sharing creative content and participating in community activities, becoming another innovative example of the combination of blockchain and AI.
The emergence of these meme coins shows that the market is constantly innovating and exploring new possibilities by combining cryptocurrencies with other fields such as artificial intelligence and cultural creativity.
4. Trading Guide: How to profit from the high volatility of Meme Coin
1) Wise choice of trading method
1. Spot trading - The first choice for conservatives Spot trading is particularly suitable for investors who have studied the project in depth and are confident in its development prospects. These investors usually:
Be optimistic about the long-term development blueprint of the project, such as unique community culture or public welfare vision
Adopting the classic buy and hold (HODL) strategy
No leverage is used to reduce the risk of liquidation
Able to remain calm during market fluctuations and focus on the fundamental value of the project
2. USDT Futures- A Playground for Advanced Players
The futures market provides an ideal platform for traders seeking higher returns:
Amplify the transaction scale through leverage and leverage the big market with small funds
Supports two-way trading, making it possible to profit in both rising and falling markets
More professional market judgment and risk control awareness are needed
Suitable for short-term players with rich trading experience
2) Key points of risk management
1. Take Profit and Stop Loss - The Lifeline of Traders
In the ever-changing market of Meme Coin, a reasonable stop-profit and stop-loss strategy is crucial:
A popular tweet could cause the price of a coin to soar several times
Negative news may cause the price of the currency to drop in half instantly
It is recommended to use automatic orders to execute stop-profit and stop-loss
Avoid missing the best trading opportunities due to emotional fluctuations
2. Position control-the eternal winning rule
Scientific position management can help you stay ahead in a turbulent market:
Control leverage ratio, excessive leverage is the biggest risk
Diversify your investments and don’t put all your eggs in one basket
The loss of a single position should not threaten the overall account security
Remember that Meme Coins are far more volatile than Bitcoin and Ethereum
3) Data analysis and tool application
1. Social media activity tracking
The price of Meme Coin is highly correlated with social media popularity:
Focus on discussion on Twitter, Reddit, Telegram, and Discord
A sudden increase in community activity often indicates that the market is about to start
Beware of the sell news trap. The ebb of news hot spots is often accompanied by a fall in prices.
Social signals should be judged comprehensively in combination with other indicators
2. On-chain data analysis and hot spot reminders
Professional data analysis tools are the key to success in the Meme coin market:
Use the on-chain platform AVE.ai to track the movement of funds and position changes of large wallets
Identify potential risk projects in advance through smart contract security audit function
Monitor the operation behavior of the project address and warn of possible crash signals
Analyze token holder distribution and liquidity changes
Accurately capture trading opportunities and keep up with the market rhythm.
Grasp the market rhythm and improve transaction efficiency:
View multi-chain market conditions in real time through AVE.ai and discover price changes immediately
Pay attention to the trading signals pushed by the platform and get reminders of market hot spots
Determine market sentiment through volume and order book analysis
Participate in the trading activities regularly held by the platform ( Meme Trading Airdrop Competition ) to win extra income
3. Track project development
High-quality Meme coin projects often gradually develop practical application value:
Pay attention to the projects layout in NFT, DeFi and other fields
Track technology updates and new feature launches
Assessing the level of community governance
Observe the long-term development plan of the project party
5. Looking to the future: Meme coins and the new normal of the crypto market
Meme coins in 2025 are no longer just a representation of meme culture, but a symbol of the deep intersection of technology, culture and finance. With the continuous development of AI-driven meme coins, NFT integration and DeFi applications, the influence of these tokens will continue to expand, gradually transforming from a simple hype tool to a key force in promoting innovation. At the same time, the operating mode of the crypto market is also undergoing profound changes, and flexible trading and rapid adaptation are becoming the new rules of survival.
The future crypto market will be more complex and diverse. Investors need to have keen market insight, flexible response strategies, and a deep understanding of on-chain data to gain an advantage in this challenging environment.
For investors, rational judgment and flexible response will be the key to success. Only by using professional tools (such as AVE.ai) to analyze on-chain data, gain insight into market trends and identify potential risks can we remain invincible in a complex and changing environment. In an era of opportunities and challenges, those who can keep pace with the times and constantly adjust their strategies will surely stand out in this wave of market evolution.
