Crypto News Today- Are Meme Coins Signaling the End of the Crypto Bull Run?
Crypto News– Decentralized Finance (DeFi) analyst Stacy Muur has cautioned that the rising popularity of meme coins could indicate the conclusion of the current crypto bull run.
Citing research from Messari on meme coin investments, Muur suggests that investors should consider locking in profits.
Why Stacy Muur Believes We’re Approaching the Market Top
Messari’s analysis highlights a pattern in the crypto markets that often begins with significant investments in infrastructure projects. This initial phase is followed by a shift towards more volatile assets such as meme coins, known for their potential for quick and substantial gains. However, Muur cautions that meme coins tend to experience the first declines, signaling the conclusion of a speculative cycle across the crypto landscape.
At present, Muur observes a decrease in meme coin activity, evident from reduced trading volumes on platforms like pump.fun, which facilitate the creation and trading of these assets.
In their research, Messari suggests the following investment framework based on this pattern: Buy memes when classic DeFi/crypto plays start rising. Then, move the entire portfolio to cash and freeze trading when meme coins decline beyond a threshold.
Stacy Muur
Muur’s thesis has sparked debate among her followers. Some critics in her discussions on X (formerly Twitter) argue that the current cycle differs from previous ones.
The rise of celebrity engagement in meme coins, with figures such as Caitlyn Jenner, Iggy Azalea, and Andrew Tate launching their own tokens, echoes patterns seen during previous market peaks in 2017 and 2021. Moreover, the creation of over one million new meme coins in April alone underscores extreme market speculation. This, coupled with the widespread sharing of profit and loss (PnL) screenshots, suggests that the market may be approaching a pivotal moment.
FAQs
What are meme coins in the context of the cryptocurrency market?
Meme coins refer to cryptocurrencies that often gain popularity based on memes, social media hype, or celebrity endorsements rather than fundamental technological advancements or utility.
Why are meme coins seen as signaling the end of the crypto bull market?
Meme coins typically attract speculative investment during the later stages of a bull market when investor sentiment is euphoric. Their sudden popularity and rapid price increases can indicate excessive risk-taking and market frothiness, characteristics often observed near market peaks.
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