The market transaction volume has surged, and there is a mystery behind it
Recently, the trading volume of the crypto market has risen sharply, from an average of $120 billion per day last week to $450 billion this week. The surge in trading volume is not simply a reflection of market optimism, but also suggests that some funds are quietly withdrawing. In particular, from November 10 to November 13, institutions such as Paradigm and DWF almost continuously transferred altcoins to exchanges, indicating that they have the intention of "shipping". At the same time, early ICO investors and some large investors have also begun to reduce their holdings of ETH. This situation shows that although the market has risen significantly, not all investors are optimistic about the future.
Moreover, although market prices continue to rise, short positions in the futures market are increasing, indicating that there are still investors fighting against the market trend. This suggests that the battle between bulls and bears is ongoing, and the future trend of the market remains uncertain, with both sides not ready to back down.
Behind the Trend: From Quantitative Change to Qualitative Change
The formation of market trends does not happen overnight; it is a process of gradual accumulation. Similarly, the dissolution of trends also requires time. When more and more 'traitors' begin to emerge in the market, a fundamental change in trend may occur. For example, although the market's trading volume reached $556 billion on November 13, approaching historical 'sales volume' levels, such one-time emotional peaks usually do not immediately change market trends. Because coins with strong trends may still refresh their highs in the short term, and second or third waves of peaks may even occur.
MEME Coin Craze: Bubble or New Opportunity?
After nearly a year of silence, the MEME coin market has recently experienced explosive growth. Data from November 14 shows that the number of MEME coins among the top 100 by market capitalization has increased to 15, a nearly 50% increase since July. Driven by MEME coins, almost all of the top ten gainers on Binance from November 13 to 14 were MEME coins.
The outbreak of this FOMO sentiment led to the trading volume of the MEME coin sector reaching 37% on the 13th, surpassing this year's AI market boom and DeFi Summer trading volume peaks, setting a new record. This high level of speculative sentiment makes it hard to imagine that over a third of the market's funds are in this state. Therefore, it can be anticipated that the speculative frenzy for MEME coins may be nearing its peak and will gradually recede. However, due to the deep involvement of top capital, MEME coins may still be subject to repeated speculation, providing opportunities for profit for some time.
The Logic Behind: Challenging the Old Order, Funds Flowing to Price Elasticity
The rise of MEME coins is not purely a bubble; it reflects a rebellion against the high FDV model. More and more investors are starting to resist the traditional VC-dominated model and are attempting to promote the establishment of a fair issuance system through market voting. This also indicates that market risk appetite is recovering, with funds starting to shift from 'value' to 'price elasticity.' In other words, the crazy surge of MEME coins may imply that the level and duration of the entire bull market could be higher than we imagined.
Asset Tokenization: New Momentum for Bull Markets
The driving force behind this bull market may be related to asset tokenization. Two giants, Tether and Visa, have launched their own asset tokenization platforms; the former simplifies the tokenization process of all assets from stocks to bonds and stablecoins through the Hadron platform, while the latter's VTAP platform aims to help banks issue and use stablecoins. As these projects gradually unfold, the cryptocurrency market may welcome new growth points.
In addition, Wall Street giants like BlackRock and Franklin Templeton are also active in the field of asset tokenization, with the former expanding its asset management scale to $1 billion. With the participation of these giants, it may have a profound impact on the future landscape of the entire cryptocurrency market, especially in the stablecoin market.
Operational Advice: Seize Rebound Opportunities
With the market's high valuations and influx of capital, old altcoins (such as XRP, ADA, etc.) have recently surged, driving a recovery in the entire altcoin sector. If you missed the earlier rallies of Bitcoin and MEME coins, there are still opportunities to find rebound chances in some bottom coins (such as DOT, ATOM, ICP, FIL, etc.), especially as the overall bull market signals become clearer, the performance of these coins may welcome a new wave of increases.
In summary, market volatility and trends cannot be determined in the short term. Investors need to be wary of the risks brought by speculation, but they can also find potential opportunities for rebounds at appropriate times. The surge of MEME coins may signify a recovery in market risk appetite, while asset tokenization could become a driving force for future growth.
