Savvy Investors Continue To Bet On Memecoins Despite The End Of The Supercycle

Experienced traders continue to be interested in memecoins despite the obvious signs of the speculative market for these particular cryptos cooling off.

Wise investors do not abandon memecoins

The most successful investors in the crypto sector, identified as “smart money” traders on the intelligence platform blockchain Nansen, continue to seek quick returns through memecoins.

These market players, known for their successful strategies, do not abandon this segment despite the signs of fatigue.

According to Nicolai Sondergaard, research analyst at Nansen, these traders maintain an interest in speculative plays while demonstrating increased caution, as evidenced by the rising in their holdings of stablecoins.

“Wise investors are always happy to capitulate. But they are also happy to get rid of it quickly “, he explained during the live Chainreaction show of Cointelegraph.

The most striking example of this dynamic remains the trader who transformed an initial investment of just 2,000 dollars into 43 million dollars with the Pepe crypto at the end of March.

Although he did not sell at the peak, he still made a substantial profit of over 10 million dollars, despite Pepe’s 70% drop from its all-time high.

The launch of the Trump token potentially marks the end of an era

The launch of the official Trump memecoin (TRUMP) on January 18, 2025, seems to have marked a turning point for the entire memecoin sector. According to a research report from Binance, the Pump.fun platform, which represents over 70% of the tokens launched on Solana, has experienced a significant decrease in activity since that date.

The weekly usage statistics of Pump.fun peaked during the week of Trump’s inauguration before entering a pronounced decline.

The total number of active wallets on the platform dropped from 2.85 million in the week of January 20 to only 1.44 million by March 31, a decrease of nearly 50%.

This downward trend is largely explained by a deterioration in investor sentiment, according to a spokesman for Binance. Unverified reports of insider trading related to tokens like $MELANIA and $LIBRA have particularly shaken market confidence.

Global macroeconomic uncertainty, including volatility caused by tariff policies, has also contributed to reducing appetite for these speculative assets.

The TRUMP token itself perfectly illustrates this trend with a staggering fall of over 87% from its peak of $75.35 reached on January 19.

This decline occurs in a broader context where the Pump.fun ecosystem has seen 99% of its memecoins disappear over four consecutive weeks, highlighting a growing disinterest in this type of investments.

Despite this significant slowdown, industry experts, like Bobby Ong from CoinGecko, remind us of the cyclical nature of these assets. If memecoins seem temporarily “dead”, their history suggests that a return is likely in the future, even if the market may evolve towards a stronger concentration around a few dominant tokens like DOGE, SHIB, or BONK.