The meme hype in this bull market is different from the previous bull market. From the perspective of sector rotation, meme hype is often concentrated at the end of the bull market. However, the 2023 Bitcoin Ecological Inscription and the Meme Tokens (Bonk, ANALOS, BOME, etc.) on Solana have attracted a lot of attention in the early stage of this bull market.
This article believes that the MEME hype in the early stage of this bull market is essentially: Bitcoin and Solana ecosystems attracted a large amount of capital influx, and the two ecosystems lacked hype concepts, which led to hot money speculation. So why did Bitcoin and Solana attract a large amount of capital influx? In addition to inscriptions and Solana Memes, what should the Meme concept focus on next?
Why is there a large influx of hot money into Bitcoin and Solana to hype MEME?
The reason why Bitcoin attracts hot money is that the Bitcoin network has stimulated new application potential after the Taproot upgrade, especially with the launch of the Ordinals protocol, new applications may lead to a large influx of funds. Among them, the more typical inscriptions, the leader of inscription tokens is ORDI. With the inscriptions, new protocols on Bitcoin emerge in an endless stream. In addition, Bitcoin will have many major technical updates coming soon, mainly including: BitVM supports the expression of smart contracts on Bitcoin, Taproot Assets mainnet launch, OP_CAT proposal, OP_TXHASH proposal draft, Lightning Timeout Trees, updated Musig 2 proposal, BIP-324 – V2 transmission.
Essentially, Meme speculation is a short-term behavior of short-term capital speculation after the breakthrough of Bitcoin technology. At present, the core of the Bitcoin chain has been transferred to many other innovative protocol levels, such as Layer2, modularization, etc. In addition to Bitcoin, Solana is also an important target that many people are optimistic about in this round of bull market. The DePIN track + AI on Solana has performed very well. In addition to the surge in Meme on Solana, many DePin concept coins on Solana have also increased dramatically. Overall, the Meme speculation in this round of bull market is a short-term speculation caused by the accumulation of hot money. From a technical point of view, Bitcoin and others still have a strong room for development, and the Meme speculation is likely to not end.
The Meme bull market on the Base chain is beginning to show its potential, and the Meme hype may turn
How can we better grasp the Meme hype? In fact, observing the flow of funds on the chain is a good method. Judging from the current data, Base is expected to become a new battlefield for MEME hype.
Base is an Ethereum L2 blockchain developed by Coinbase. In addition to its integration with Coinbase, Base is popular for its security, economy, and developer-friendly environment. Base launched its testnet in February 2023, and its ecosystem is expanding rapidly. In the past 90 days alone, UAW has increased from 20,000 to 270,000, and the BASE network currently generates $3-4 million in revenue per week. According to data from Deflama, Base's monthly capital inflow increased by 162%, and its TVL has risen to ninth place.
Although the meme on Base seemed to be short-lived a few days ago, its capital inflow continues. This article believes that the new meme battlefield is still shifting to Base. In mid-March, Bome on Solana set off a round of meme pre-sale craze, and various imitations quickly appeared on the market and quickly fell out of favor. On March 20, there was also a meme craze on the Base chain, among which OVER and BACK attracted the most attention. OVER and BACK are a pair of Meme coins. You can trade market sentiment by buying OVER or BACK. It is a real-time on-chain prediction market for fear/greed indicators. The project took a snapshot of OVER and BACK at 22:15 on March 19 and started a trading competition. In the next 24 hours, the winning token will be determined according to the 24-hour trading volume, market value and number of holders, and 2.5 million tokens will be given to the winning party. Only the holder of one party's token will win the airdrop (worth about $2,000). This gameplay and concept made many retail investors’ fomo rush higher, but as profit-taking fled, these two meme coins fell at the same fast speed as they rose, presenting a roller coaster market.
In addition to the two new MEME tokens mentioned above, what other leading MEME tokens on Base are worth paying attention to?
Brett: Brett is the meme faucet of BASE. The meme is inspired by Matt Furie's character in the "Boy's Club" comic series. Brett has become one of the most famous cultural symbols in the BASE ecosystem.
TOSHI: Toshi represents Brian Armstrong ’s (Coinbase CEO) cat and serves as Base’s mascot.
Normie: Normie is a BASE meme coin designed for ordinary people, with a mission to strengthen the BASE ecosystem by bringing millions of ordinary people into BASE.
How to seize the opportunity of Meme hype?
Meme speculation is one of the most risky speculative behaviors in the crypto industry. How can we seize opportunities while avoiding risks? This article summarizes some methods for investors' reference only.
Predict price trends by tracking community participation and measuring market sentiment: Google Trends is one of the common ways to measure market interest in a topic, and Twitter sentiment indicators help measure the sentiment of market participants and can sometimes be leading indicators. In addition, the number of MEME project currency addresses and the number of MEME project Twitter followers are also very important indicators of concern. In addition, whether it is distributed to a wider group for free and fairly is also a very important indicator, because free and fair distribution often has higher market attention and popularity.
Grasp some characteristics of potential MEME tokens: generally, the market value is small, because it is not easy to manipulate the market to surge if the market value is too large (for example, DOGE, SHIB, and PEOPLE did not have a large market value at the beginning); MEME tokens have a certain narrative consensus value, such as DOGE's reward culture; SHIB said it would build a defi public chain ecosystem; PEOPLE said it would buy the US Constitution, LUNC took measures to destroy deflation, TSUKA spread the spirit of Tibetan Buddhism, and so on; there are exchanges paying attention and listing. As a very important force in the crypto market, exchanges cannot be underestimated in promoting MEME tokens.
Grasp the rotation cycle of MEME tokens: As mentioned above, the rotation cycle of MEME tokens is in the middle and late stages of the bull market. After the market lacks hot spots, MEME tokens tend to attract the attention of speculative funds. For example, the last round of bull market experienced a basic sector rotation: cash → BTC/ETH → Defi/L2 → Gamefi/ Metaverse /NFT → DOGE/SHIB/Animal Coin → cash.
Use valuation methods to seize investment opportunities in MEME tokens: MEME tokens rely on consensus to accumulate value, so the speed and breadth of information transmission are very critical factors. The market value of MEME tokens usually has several stages: 1 million US dollars, 5 million US dollars, 10 million US dollars, 100 million US dollars, 300 million US dollars, and more than 1 billion US dollars.
Summarize
With the completion of the Dencun upgrade, the gas fee of Layer2 on Ethereum has been greatly reduced, and the performance gap between it and other public chains has been significantly reduced. Judging from the recent capital inflow, the Base chain continues to inflow funds, and it is very likely to take over Solana and show an upward trend, especially the MEME token on Base. Due to its relatively small valuation, its hype space is relatively large. However, Meme hype is risky, and investors should still invest cautiously.
