In this round of bull market, many people are more disappointed in the belief of value investment, and are more fond of memes and local dogs. Value investment is in vain, and memes are the real value?
This is a bull market for many retail investors who are keen on local dogs, and this round of MEMEs will last longer. The characteristics of meme coins and VC capital coins in the last few rounds of bull markets are that, except for a few MEMEs that can go viral, the hype time of most other MEMEs will be very short, generally within a month. For example, the zoo in 21 years. However, in this round of bull market, from the earliest inscriptions (inscriptions are objectively also memes), to the later SOL chain, base chain local dogs, and then to the mainstream MEMEs. In general, the shadow of MEME can be seen throughout the entire bull market. Among the top 100 in market value, there are DOGE, ordi, pepe, shib, and bonk. Among them, BOME, which ranks at the bottom, has achieved a market value of 4.5 billion in just two or three months. In the bull market before 18 years, except for DOGE, there was almost no shadow of meme in the top 100 in market value, and only one shib did it in 21 years.
At the beginning of 2023, BRC20 brought about a small bull market.
In October 2023, Inscription led to a big bull market. In early 2024, Solchain Tugou led to a big bull market.
In the past two months, PEPE has been the meme bull, and even DOGE has been dragged by local dogs. On the other hand, VC coins are not doing well.
Since last year, Binance has launched more than a dozen "VC value coins", most of which reached a climax as soon as they were launched and then continued to fall for several months.
The so-called "king of public chains" ETH has only doubled its growth rate in the entire bull market, and its L2 performance is also disappointing. Led by ATOM, MATIC, and AOT, the once star public chains have continued to do nothing throughout the bull market. The blockchain game sector, which is sought after by many capitals, has also done nothing and is stagnant. Of course, there are many more examples.......................
Why is this happening? We will all find out the reasons over time.
1. Inflation is too severe, and the entire market cannot rely on on-site funds to support the collective pull-up. The situation may only improve after the news of interest rate cuts and loosening of liquidity is clear.
2. There are too many project parties and the output is too high. In the past, there were only a few projects a month, but now there are dozens of projects a month. They are all well promoted, but their performance is very poor, forming a vicious cycle. Retail investors have no hope for the credibility of VC coins.
3. In order to attract traffic, current VC coins have issued too many airdrops. The project owners do not want the market value to be too low, so they often open high and close low. This is a helpless move. In the bull market before 2018, I remember that many copycats were listed on second-tier exchanges. The market value started at millions, and then slowly pulled up to the first-tier exchanges.
Looking at the current projects, after being listed on the exchange, their circulating market value can easily reach hundreds of millions, and their total market value can reach tens of billions.
This makes the valuation of the project itself too high. Even if it falls by 80%, many projects are still overvalued. It is equivalent to these projects skipping the previous stage of pulling the price up. They directly go online and reach a climax. Then the project owners and private equity capital together squeeze the floor, and the price goes down. This ugly situation is not a precedent for a certain project. Even for a project with good performance like ONDO, the valuation is too high when it goes online. This has led to many retail investors not buying VC tokens in the secondary market, and the project owners are unable to pull it up. All of them are in a mess.
Speculating in MEME instead of VC coins is the choice of retail investors and some big capitals in the cryptocurrency circle. It is understandable that they are unwilling to pay for traditional private equity. If you want to know more about the cryptocurrency circle and first-hand cutting-edge information, click on Zhuye Wumen Kanqunli to publish market analysis and recommend high-quality potential currencies every day.