Markets
This is why Meme Coins signal the end of the Crypto Bull Run
Decentralized finance (Challenge) Analyst Stacy Muur has warned that the rise in popularity of meme coins could signal the end of the current cryptocurrency bull run.
Following Messari’s research into coin investing, Muur speculates that investors should consider guaranteeing profits.
Why Stacy Muur is speculating on the market top
Messari’s analysis reveals a trend in crypto markets that typically begins with major investments in crypto infrastructure projects.
“It makes a lot of sense: cryptocurrency bull markets usually start with BTC or smart contract platforms due to factors like liquidity, risk-reward profiles, and technological advancements. These assets signal that “crypto is not dead,” attracting speculation and development,” Muur explain.
The investment trend then shifts towards more volatile assets like meme coins, known for their rapid potential gains. However, Muur warns that meme coins are usually the first to fall, marking the end of a speculative wave across the crypto spectrum.
Learn more: 7 Hot Meme Coins and Altcoins Trending in 2024
Comparing the Meme Coin cycle with crypto infrastructure projects. Source: Messari
Currently, Muur notes a decline in coin activity, which indicates a reduction in trading volume on platforms like Pump.fun, which supports the creation and trading of these assets.
“In his research, Messari suggests the following investment framework based on this model: Buy memes when the classics are used. Challenge/Crypto gaming is starting to increase. Then move the entire wallet to cash and freeze trading when meme coins decline beyond a threshold,” Muur elaborated.
Muur’s thesis sparked debate among his supporters. Some critics on his X thread (formerly Twitter) say the current cycle is a departure from the past.
“The framework of this whole thesis is wrong. Memes were the first to pump this cycle, unlike in the past. We are now entering a higher liquidity cycle with interest rate cuts. We are far from the top,” an X user said.
Other analysts share more skepticism. This month, BeInCrypto reported insights from an analyst who highlighted three key market signals:
- Celebrity endorsements for meme pieces.
- An increase in new parts even and,
- A flood of PnL screenshots on social media.
The growing involvement of celebrities in meme pieces, with figures like Caitlyn Jenner, Iggy AzaleaAnd Andrew Tate their token launch reflects past market highs in 2017 and 2021.
Learn more: Crypto Scam Projects: How to Spot Fake Tokens
Additionally, the creation of more a million new coins even in April alone indicates extreme speculation in the market. This situation, combined with the widespread sharing of PnL screenshots, suggests that the market may be near a turning point.
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