{"id":19221,"date":"2024-12-05T12:28:25","date_gmt":"2024-12-05T10:28:25","guid":{"rendered":"https:\/\/forklog.com\/en\/experts-weigh-in-on-the-slowdown-of-the-meme-coin-bull-run\/"},"modified":"2024-12-05T12:28:25","modified_gmt":"2024-12-05T10:28:25","slug":"experts-weigh-in-on-the-slowdown-of-the-meme-coin-bull-run","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/experts-weigh-in-on-the-slowdown-of-the-meme-coin-bull-run\/","title":{"rendered":"Experts Weigh in on the Slowdown of the Meme Coin Bull Run"},"content":{"rendered":"

The trajectory of meme coins is closely tied to the overall state of the global market, reflecting macroeconomic trends with significantly higher volatility. This perspective was shared with Cointelegraph<\/a> by Murad Mahmudov, a former Bitcoin maximalist and expert in the “funny money” niche.<\/p>\n

According to him, “meme” crypto projects cannot be assessed using traditional fundamental analysis methods, which is essentially their advantage.<\/p>\n

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“If DeFi protocols start paying dividends, we can evaluate them based on 500 years of history on how to assess assets based on cash flows. […] Investment bankers will come and say ‘why should I pay 200 P\/E<\/span> for this thing?'” the expert noted.<\/p>\n<\/blockquote>\n

Meme coins defy such evaluation, hence their potential is “limitless”:<\/p>\n

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“If an asset trades and behaves like a meme, then there is no limit to its growth because who knows how to evaluate it?”<\/p>\n<\/blockquote>\n

Mahmudov linked the performance of the rapidly growing segment to the overall state of the economy:<\/p>\n

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“As long as there is global liquidity and risk-taking behavior in traditional markets, meme coins will continue to gain strength. However, in the event of a recession, they are likely to come under pressure as well.”<\/p>\n<\/blockquote>\n

He stated that cryptocurrencies mimic the movements of the traditional market, amplifying any trend two to three times. Meme tokens are a hypertrophied, greatly enhanced reflection of the state of the crypto market.<\/p>\n

Analyst Pav Hundal from Sfyftx also believes that “coins that appeared out of nowhere” follow global trends. In his view, this asset class is “nothing more than a risky play on the rest of the industry and the global financial market.”<\/p>\n

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“All you need to know about the current cycle is that global liquidity is higher, regulatory risk is lower, and I expect the US dollar to weaken,” the specialist emphasized.<\/p>\n<\/blockquote>\n

Reflecting on the significant growth of many coins, Hundal warned of a possible market overheating and meme fatigue\u2014a “normal phenomenon after a 150% increase.”<\/p>\n

He suggested that this niche might face specific challenges:<\/p>\n

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“It is quite possible to imagine a future where censorship, meme fatigue, or ‘cancel culture’ become risks.”<\/p>\n<\/blockquote>\n

As an argument, Hundal pointed to a tweet by Binance founder Changpeng Zhao, where he called these assets “weird” and urged building “real applications.”<\/p>\n

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I am not against memes, but meme coins are getting “a little” weird now.<\/p>\n

Let’s build real applications using blockchain.<\/p>\n

\u2014 CZ ? BNB (@cz_binance) November 26, 2024<\/a><\/p><\/blockquote>\n