Recently, some meme coins have dazzled with their performances in the market. According to DeFi analyst Stacy Muur, this increase in the popularity of meme coins is a negative sign for the market. Because Muur thinks this could signal the end of the current crypto bull run. Following Messari’s meme coins investment research, Muur thinks investors should consider securing their profits.
Stacy Muur: Meme coins send an important signal to investors!
Messari’s analysis reveals a pattern in crypto markets that typically begins with large investments in crypto infrastructure projects. Based on this, Stacy Muur makes the following assessment:
This makes sense: Crypto bull markets often start with BTC or smart contract platforms due to factors like liquidity, risk-reward profiles, and technological breakthroughs. These assets attract speculation and development by signaling that “crypto is not dead.”
The investment trend then shifts towards more volatile assets such as meme coins, which are known for their potential quick gains. But Muur says meme coins are often the first assets to fall. He also warns that it marks the end of a speculative wave in the crypto spectrum.
Analyst: Stop when meme coins fall beyond a threshold!
Currently, Muur notes that the decline in meme coin activity indicates reduced trading volume on platforms like pump.fun that support the creation and trading of these assets. In this context, the analyst makes the following statement:
In their research, Messari recommends the following investment framework based on this model: Buy meme coins when classic DeFi/crypto plays start to rise. Then, liquidate the entire portfolio and freeze trading when meme coins fall beyond a threshold.
There are also those who oppose the analyst’s thesis, but…
Muur’s thesis sparked controversy among his followers. Some critics in the X thread argue that the current cycle is different from the past. In this regard, an X user said, “The framework of this entire thesis is wrong. Unlike the past, meme coins were the first to pump this cycle. We are now entering a cycle of higher liquidity with interest rate cuts. “We are nowhere near the top,” he says. Other analysts share the same skepticism. But this month, one analyst pointed to three top signals in the market:
- Celebrity endorsement meme coins.
- Increase in new meme coins.
- PnL screenshots are flooding social media.
cryptokoin.comAs you’ve been following from , celebrity participation in meme coins is on the rise, with names like Caitlyn Jenner, Iggy Azalea and Andrew Tate launching their tokens. This mirrors past market peaks in 2017 and 2021. Additionally, the creation of more than one million new meme coins in April alone indicates excessive market speculation. This, combined with widespread sharing of PnL screenshots, suggests the market may be approaching an inflection point.
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