Original author: Asher zhang
Original source: Bitpush
The Meme hype in this bull market is different from the previous bull markets. 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 rising Meme tokens on Solana (Bonk, ANALOS, BOME, etc.) attracted quite a lot of attention at the beginning of this bull market.
This article believes that the MEME hype in the early stages of this bull market is essentially the following: Bitcoin and Solana ecology attract a large influx of funds, resulting in hot money speculation when the two major ecosystems lack the concept of hype. So why are Bitcoin and Solana attracting huge influxes of money? In addition to inscriptions and memes on Solana, what should the meme concept focus on next?
Why is hot money pouring into Bitcoin and Solana 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.
In essence, meme hype is a short-term behavior of short-term fund 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 Layer 2, modularity, etc. In addition to Bitcoin, Solana is also an important target that many are optimistic about in this bull market. The DePIN track + AI on Solana has performed very well. In addition to Meme on Solana, many DePin concept coins on Solana have also increased astonishingly. Overall, the Meme hype in this 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 strong room for development, and the Meme hype will most likely not end.
The Meme bull market on the Base chain is beginning to show its potential, and the Meme hype may turn
How to better capture Meme hype? In fact, observing the flow of funds on the chain is a good way. Judging from the current data, Base is expected to become a new MEME hype battlefield.
Base is an Ethereum L2 blockchain developed by Coinbase. In addition to its integration with Coinbase, Base is popular for its security, affordability, and development-friendly environment. Base launched its testnet in February 2023 and its ecosystem is rapidly expanding, with UAWs growing from 20,000 to 270,000 in the past 90 days alone, and the BASE network currently generating $3-4 million in revenue per week. Observed from the data on Defillama, Base’s monthly capital inflow increased by 162%, and its TVL has risen to ninth place.
Although the Meme on Base seems to be short-lived in the past few days, its capital inflow continues. This article believes that the new Meme battlefield is still shifting to Base. In mid-March, Solana set off a meme pre-sale frenzy on Bome, and various imitation disks quickly appeared on the market and soon fell out of favor. On March 20, there was also a meme craze on the Base chain, among which the most popular ones were OVER and BACK. OVER and BACK are a pair of meme coins that can be used to trade market sentiment by purchasing 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 the trading competition. In the next 24 hours, it will decide which token wins based on the 24-hour trading volume, market value and number of holders, and 2.5 million tokens will be given to the winner, and only holders of one side’s tokens will win the airdrop (worth approximately $2,000). This gameplay and concept made many retail investors' fomo surge higher, but as profits fled, these two meme coins fell as fast as they rose, creating a roller coaster market.
In addition to the two new MEME tokens mentioned above, what other leading MEME tokens are worth paying attention to on Base?
Brett: Brett is the meme leader coin of BASE. The meme was 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 meme hype opportunity?
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 movements by tracking community engagement and measuring market sentiment: Google Trends is one of the common ways to measure market interest in a topic, and the Twitter Sentiment indicator helps measure market participant sentiment and can sometimes be a leading indicator. In addition, the number of MEME project currency holding addresses and the number of MEME project Twitter followers are also very important indicators of concern. In addition, whether free and fair distribution to a wider group of people is also a very important indicator, because free and fair distribution tends to attract 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 had small market values at the beginning); MEME tokens have a certain narrative consensus value, such as DOGE's reward culture; SHIB talks about building a defi public chain ecosystem; PEOPLE talks about buying the US Constitution, LUNC takes measures to destroy deflation, TSUKA spreads 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 MEME token rotation cycle: As mentioned above, the MEME token rotation cycle 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 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 cost of Layer 2 on Ethereum has been significantly reduced, and its performance gap with other public chains has been significantly reduced. Judging from the recent capital inflows, the funds on the Base chain continue to flow in, and there is a high probability that it will take over Solana and rise. Especially the MEME token on Base, because its valuation is relatively small, its room for speculation is relatively large. . However, Meme hype is risky, and investors should still invest with caution.
