The Impact of Meme Coins on the Crypto Assets Market and Their Catalytic Role

Recently, there are views that Meme coins have destroyed the current Crypto Assets cycle. Although I have always advocated for “technical narratives and long-termism,” objectively speaking, Meme coins did not “destroy” this cycle; instead, they acted as a market catalyst that accelerated the maturity of the industry.

First, the market has shifted from “technology is king” to “attention is king.” Meme coins have become the most intuitive embodiment of this transition. Most technical projects require years to realize their roadmap, while the market has lost patience in waiting and trust. This has created opportunities for Meme coins to attract liquidity through short-term wealth effects.

Secondly, Meme coins force technical projects to innovate themselves. The previous model relying on financing valuation, technical packaging, and concept piling has become ineffective. Technical projects are compelled to return to actual delivery, as investors have experienced the advantages of “simplicity and clarity, with a clear wealth effect” in Meme coins, and are no longer willing to accept projects that are “technically complex but lack long-term delivery.”

Moreover, Meme coins have expanded the boundaries and foundation of the entire market. Technical projects often attract only a small elite group, while mass adoption requires interaction methods that are simple and easy to understand, allowing for quick consensus. When a large number of ordinary users enter the market due to Meme coins, some of these users will engage in deeper ecological exploration, bringing new user groups to technical projects and alleviating the long-standing “lack of usage” dilemma faced by these projects.

It is worth noting that the Meme coin craze will not last throughout the entire cycle, but the market vitality it releases will benefit most of the crypto ecosystem. As investors experience the duality of short-term wealth and zeroing out, they will naturally seek more balanced investment targets. At that time, technology projects that truly solve practical problems, establish user stickiness, and have a clear business model will welcome a valuation reconstruction, completing the transformation from concept to value.

In the end, Meme coins have thoroughly reshuffled the traditional high valuation and low circulation model. The past financing model created a distorted market structure of “high valuation, low circulation,” which left almost no room for ordinary investors to appreciate their holdings. In contrast, despite the enormous risks, Meme coins have reinvigorated market vitality with their characteristics of transparency, simplicity, and equal participation for all, returning the market to a more fair and transparent competitive environment. It can be said that the shrinking and exit of certain investment institutions from the market is closely related to the increasing mainstream status of Meme coins.