Written by: Chi Anh, Jay Jo, and Elsa
Translated by: Blockchain Plain Talk
Key Points
Memecoins have transformed from mere speculative assets to a dominant trading force, attracting significant liquidity and reshaping capital flow patterns in the crypto market.
Platforms like Pump.fun have driven the rise of decentralized exchanges (DEX), attracting liquidity and active traders, thereby weakening centralized exchanges' (CEX) early price discovery capabilities.
Exchanges like MEXC that quickly adapt to Memecoins trading have performed strongly, while slower platforms like BN face challenges in liquidity and market influence.
To adapt to this change, market makers, liquidity providers, and project teams are adjusting their strategies. They are no longer focusing solely on CEX listings but are now emphasizing the DEX environment. By establishing liquidity pools across multiple platforms, they have enhanced transaction accessibility and flexibility.
However, the Memecoins market still faces numerous risks. Unethical behaviors such as rug pulls, group manipulation, and malicious trading severely damage investors' interests. Due to the lack of effective regulation in the market, these issues are commonplace. For example, the Argentina Libra ($LIBRA) scandal exposed these potential risks, triggering widespread doubts about Memecoins and leading to a significant decline in Solana DEX trading volume.
Despite this, Memecoins continue to demonstrate their potential in the crypto field. They are gradually becoming representative assets for certain entities and groups. For instance, Elon Musk's relationship with Dogecoin, Trump's association with Official Trump Token, and some startup and national Memecoins cases all indicate that cryptocurrencies are capturing real economic and social value. This trend bears similarities to the securitization process in traditional financial markets and may gradually evolve into a new cultural phenomenon.
Facing this change, CEXs must quickly adjust their strategies. Investors are no longer waiting for CEX listings before trading potentially valuable assets. To attract more users and maintain competitiveness, trading platforms need to integrate on-chain functions and DeFi elements while ensuring platform stability and compliance. This flexible and innovative strategy will be key to driving the crypto market into its next growth phase.
