Old money favors memes, which may signal the beginning of the next cycle

Original Title: “Some thoughts on the Memecoin cycle”

Author: Layergg

Translation: Deep Tide TechFlow

Meme is becoming an alternative to "VC, CEX, and high FDV" in this crypto cycle. Community-driven + fair launch has captured the hearts of retail investors and is beginning to exert influence in the actual bidding phase.

This year, large-cap Memes have performed exceptionally well, maintaining strong returns even during market corrections. Now, Memes have become a mainstream asset class, as clearly evidenced by the holdings of Robinhood users.

One point to consider is that global asset management firms have only just begun to enter the cryptocurrency space.

I believe that seasoned Wall Street professionals are unlikely to become exit liquidity for crypto venture capital firms; they are more likely to disrupt the status quo, and Memes are expected to be one of the tools they use to achieve this.

Two prominent examples are Franklin Templeton and VanEck.

a) VanEck's MarketVector recently launched a Meme index.

b) Franklin Templeton continues to publish articles about Memes. An interesting case is Franklin Templeton's promotion of $WIF.

Surprisingly, traditional crypto venture capital is still slow to embrace Memes. Major Memes like $WIF and $PEPE are not found in the portfolios of top venture capitalists. If they eventually yield and decide to invest in Memes, it could mark the beginning of the second wave of the Meme cycle.

Perhaps the upcoming U.S. presidential election will force venture capitalists to make a painful decision soon (whether to include Memes in their portfolios).

While it is still uncertain who will win between Trump or Biden, every related event seems to favor the momentum of Memes.

Most importantly, retail investors are feeling disappointed with "low circulation, high market cap" projects. Venture capitalists advocate for "serious/fundamentals!", but the market response remains tepid. In this situation, hedge funds and market makers face pressure to generate returns within a specified timeframe.

“Is the meme over?”

Today, the Roaring Kitty, famous for $GME, posted for the first time in three years. His return likely heralds the beginning of the second wave of the Meme cycle.

Do not underestimate his influence.

From a technical analysis perspective, most major Memes are currently in a retest phase. Some significant Memes (such as $PEPE and $WIF) are expected to enter the top 20 soon.