The cryptocurrency market continues to see successful traders chasing quick profits in memecoins, despite indications that the overall speculative “supercycle” for these assets may be coming to an end. The recent disappointment surrounding memecoin launches linked to former US President Donald Trump has not deterred the industry’s most successful traders, known as “smart money” traders on Nansen’s blockchain intelligence platform. These traders are still actively seeking high returns from memecoins.
Nicolai Sondergaard, a research analyst at Nansen, notes that while there is a growing cautiousness seen in the increased stablecoin holdings, smart money remains interested in speculative plays. Sondergaard explained during Cointelegraph’s Chainreaction live show that smart money traders are quick to capitalize on meme surges but are also willing to rotate out of these assets just as fast. He emphasized that memecoins operate independently of the macroeconomy affecting major cryptocurrencies like Bitcoin and Ethereum.
One notable example is a trader who turned a $2,000 investment into $43 million with the popular Pepe (PEPE) cryptocurrency. Despite not selling at the peak, the trader still realized a profit of over $10 million, showing the potential for significant gains in the memecoin market.
The launch of the Official Trump (TRUMP) memecoin on January 18 may have marked the conclusion of the memecoin “supercycle.” Pump.fun, a platform responsible for over 70% of memecoin launches on Solana, saw a decline in activity following Trump’s debut. The total number of active wallets on Pump.fun dropped from 2.85 million to 1.44 million by the end of March, signaling a shift in investor sentiment.
A Binance research report highlighted that rumors of insider trading linked to tokens like $MELANIA and $LIBRA may have contributed to declining market sentiment. Additionally, broader macroeconomic uncertainties and volatile global tariff policies have dampened speculative interest in memecoins.
As a result, the TRUMP token has plummeted more than 87% from its peak price and experienced an 8% decline in the past week. This downward trend reflects the changing landscape of the memecoin market and the challenges faced by traders in this volatile sector.
Overall, while some traders are still pursuing quick profits in memecoins, recent developments indicate a shift in the market dynamics that may require a more cautious approach when investing in these speculative assets.
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