Meme Coin: Catalyst of the crypto market

Currently, there are voices in the crypto community that believe Meme coins have ruined this market cycle. As an observer who has long advocated for technological value and long-termism, I think it is necessary to present a more objective perspective: Meme coins have not actually “destroyed” this cycle; rather, they have acted as a catalyst that accelerated the maturity process of the entire industry.

Market Paradigm Shift

The market has gradually transitioned from the paradigm of “technology is king” to “attention is king.” Meme coins have become the most direct embodiment of this change. Most technology-driven projects usually require a three to five-year roadmap implementation cycle, but today’s market has lost the patience to wait, believe, and trust, which has given Meme coins a time window to attract liquidity by leveraging short-term wealth effects and FOMO psychology.

Forcing Technological Innovation

The rise of Meme coins has actually forced technological projects to undergo self-reform. The previous model of relying on venture capital support, attracting investors through technical packaging and conceptual piling, has reached a dead end. The era of relying on financing valuation, flashy technical terminology, and concept hype to harvest retail investors has indeed come to an end.

Technical projects are forced to return to the delivery of real value, as investors have experienced an investment experience in Meme coins that is “simple and straightforward, with clear wealth effects.” They are no longer willing to accept projects that are “technically complex but have no actual delivery in the long term.”

Expand Market Boundaries

Meme coins have greatly expanded the boundaries and foundation of the entire crypto market. No matter how sophisticated the technical narrative is, it can at most attract the elite group that can understand the technology, while true mass adoption requires an interaction method that is simple, easy to understand, and can quickly generate consensus.

When a large number of ordinary users enter the market due to Meme coins, a significant portion of them will inevitably engage in deeper ecological exploration. This, in turn, brings an unprecedented incremental user pool for technical projects, solving the long-standing dilemma of “no one is using” technical projects.

Natural Evolution of Market Cycles

The Meme craze will not cover the entire market cycle, but the market vitality it releases will benefit most areas of the crypto ecosystem. The nature of hot money chasing profits determines that Meme coins cannot continuously generate wealth effects. After most people experience the duality of short-term wealth and total loss, they will naturally seek more balanced investment targets.

By then, technology projects that truly solve practical problems, establish user stickiness, and possess a clear business model will usher in a valuation reconstruction, completing the transformation from concept to actual value. For technology-oriented projects, this is not an end, but the starting point of rebirth through nirvana.

Restructuring Investment Models

Meme coins are essentially a complete reconstruction of the traditional venture capital-supported high comprehensive dilution value low circulation model ( FDV ). In the past, the venture capital-dominated financing model created a distorted market structure of “high valuation, low circulation,” leading to a general decline after token generation events. This structure has left little room for ordinary investors to see appreciation in their holdings, stifling the dreams of retail investors to become wealthy by holding encryption assets.

In contrast, despite the enormous risks, Meme coins have reactivated market vitality with their transparency, simplicity, and equal participation features, making the market environment fairer and more transparent. It is not difficult to see that the shrinking market space and forced exit of certain venture capital institutions are closely related to the gradual mainstreaming of Meme coins.