The top cryptocurrency traders, known for their successful returns, continue to pursue rapid profits through memecoins, even as indications suggest that the broader “supercycle” for these speculative assets might be coming to an end. This trend follows recent disappointment from the launch of memecoins linked to former President Donald Trump.
The most adept cryptocurrency traders, referred to as “smart money” on a prominent blockchain analytics platform, are still actively seeking quick returns from memecoins.
As stablecoin holdings are on the rise, indicating a more cautious approach, these smart money traders remain willing to engage in speculative ventures, according to insights from a blockchain research analyst.
“The recent surge in meme activity has attracted attention, and smart money is always keen to capitalize on that. However, they can also pivot away from these investments just as quickly,” he mentioned during a live discussion on social media.
“The recent rush in meme tokens was merely an entertaining opportunity they explored, while the larger market looks for its next direction, as memecoins don’t necessarily respond to the same macroeconomic factors as Bitcoin and Ethereum,” he added.
The analyst’s comments followed the impressive feat of a shrewd trader who turned an initial investment of only $2,000 into $43 million with the popular Pepe (PEPE) cryptocurrency, as reported recently.
Strategic Pepe trader, transactions.
However, this trader did not manage to cash out at the peak but still realized over $10 million in profit, despite Pepe experiencing a decline of more than 70% from its all-time high.
The Trump token launch may have marked the end of the memecoin “supercycle”
The introduction of the Official Trump (TRUMP) memecoin on January 18 might have marked a turning point for the memecoin “supercycle.”
The platform responsible for launching memecoins has been a key player in this cycle, accounting for over 70% of the tokens introduced on Solana, according to a research report shared with the relevant community.
Usage metrics for the token launch platform.
Usage statistics for the memecoin launchpad peaked during the week of Trump’s inauguration but have since fallen. The number of active wallets on the platform decreased from 2.85 million during the week of January 20 to just 1.44 million by March 31.
This decline can largely be attributed to a drop in investor sentiment, according to a spokesperson, who noted:
“Market sentiment appears to have shifted, especially amid unverified reports of insider trading linked to prominent tokens such as $MELANIA and $LIBRA.”
“Wider macroeconomic uncertainties, including fluctuations influenced by global tariff policies, may have further dampened the speculative interest in memecoins overall,” the spokesperson added.
TRUMP/USD, all-time price chart.
Currently, the TRUMP token has dropped over 87% from its peak of $75.35, which was reached on January 19. In the past week alone, it fell by more than 8%, based on market data.