The most successful crypto traders are still seeking quick profits from memecoins, despite signs that the "super cycle" of these speculative assets may be cooling down. This change occurred after memecoin launches related to US President Donald Trump disappointed the community.
The highest-profit traders – known as "Smart Money" (SM) on the Nansen blockchain analysis platform – continue to hunt for profits from memecoins. Although the increasing stablecoin holding rate suggests the market sentiment is becoming more cautious, the SM group remains ready to engage in speculative trades, according to Nicolai Sondergaard, a research analyst at Nansen.
"Recently there has been a memecoin explosion, and Smart Money is always ready to take advantage of that. But they can also quickly exit these investments...
This meme craze is just a fun investment they make while the overall market determines its trend. Memecoins are not necessarily influenced by macroeconomic factors like Bitcoin and Ethereum."
Sondergaard's observation came a week after a trader cleverly turned an initial $2,000 investment into $43 million through the memecoin Pepe (PEPE).
Although not capturing profits at the peak, the trader still realized more than $10 million in actual profits, despite Pepe dropping over 70% from its all-time high.
The memecoin TRUMP launch on January 18th may have marked the end of the memecoin "super cycle".
"Pump.fun is almost the center of the 'memecoin super cycle' as the platform accounts for over 70% of tokens issued on Solana", according to a research report by Binance.
Platform usage metrics peaked during Trump's inauguration week but have since declined sharply. Active wallets on Pump.fun dropped from 2.85 million in the week of January 20th to 1.44 million on March 31st.
The primary reason is the decline in investor sentiment, according to Binance representatives.
"The market was also affected by unverified reports of insider trading involving prominent tokens like MELANIA and LIBRA...
Global macroeconomic instability, including tariff policy fluctuations, may have reduced the appeal of memecoin speculations."
Meanwhile, the TRUMP token price has dropped over 87% from its peak of $75.35 on January 19th. In the past week alone, the token continued to decline by over 8%, currently trading around $9.14.
You can view coin prices here.
Disclaimer: The article is for informational purposes only and is not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment choices.
Join Telegram: https://t.me/tapchibitcoinvn
Twitter (X): https://twitter.com/tapchibtc_io
Tiktok: https://www.tiktok.com/@tapchibitcoin
Youtube: https://www.youtube.com/@tapchibitcoinvn
Justin
