Investors Shift Focus from Memecoins to Fundamental Altcoins

Ella Zhang, head of YZi Labs (formerly Binance Labs), has observed a noticeable change in crypto investment patterns.

The hype around memecoins appears to be fading, with capital shifting back to altcoins that have stronger fundamentals.

Zhang pointed out that while memecoins initially attracted attention due to their community-driven appeal, their lack of real utility has caused investor enthusiasm to decline. Earlier this year, speculative trading in these assets surged, but the trend is now reversing.

Platforms like Pump.fun have made it easier for retail investors to participate in early-stage crypto projects, particularly memecoins and experimental tokens.

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However, despite the accessibility of these assets, their popularity has proven to be short-lived. Zhang noted that recent data from CoinMarketCap shows a decline in the ratio of memecoins’ market cap compared to more established altcoins, suggesting that funds are flowing back into projects with stronger backing.

She emphasized that long-term value in crypto depends on real innovation, business applications, or technological advancements. Without these fundamentals, sustaining price growth remains a challenge.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.