The Impact and Insights of Meme Coins on the Crypto Assets Market

Recently, there has been a viewpoint that Meme coins have harmed this round of Crypto Assets cycle, but in fact, Meme coins, as market catalysts, have accelerated the maturity of the industry.

First, the market's focus has shifted from "technology is king" to "attention is king". Meme coins intuitively reflect this change. Most technology projects require years to achieve their roadmaps, while the market has lost patience. This creates opportunities for Meme coins to attract liquidity through short-term wealth effects.

Secondly, Meme coins force technology projects to innovate themselves. The previous model that relied on financing valuation and conceptual packaging has become ineffective. Technology projects are compelled to return to substantial delivery, as investors have already experienced the direct wealth effect brought by Meme coins and are no longer willing to accept complex technology projects that cannot be realized in the long term.

Third, Meme coins have expanded the market boundaries. While sophisticated technical projects can only attract a small elite group, mass adoption requires simple and understandable interaction methods that can quickly form consensus. A large number of ordinary users entering the market through Meme coins may lead some users to explore the ecosystem more deeply, bringing new user groups to technical projects and solving the long-standing dilemma of "no users" for these technical projects.

Fourth, while the Meme coin craze may not last the entire cycle, the market vitality it brings will benefit the entire Crypto Assets ecosystem. After most people experience short-term wealth and then return to zero, they will naturally seek more stable investment options. At that time, technology projects that truly solve practical problems, establish user stickiness, and have clear business models will welcome valuation reconstruction, completing the transformation from concept to value.

Finally, Meme coins have disrupted the traditional high-valuation, low-circulation market structure. The past financing model dominated by venture capital has led to a general decline after Token generation events, leaving almost no room for ordinary investors to benefit from holding coins. In contrast, despite the high risks, Meme coins have re-energized the market with their transparency, simplicity, and equal participation characteristics, bringing the market back to a more fair and transparent competitive environment. Some venture capital firms have seen their market space shrink or even exit, which is not unrelated to the rise of Meme coins.