Hot narratives in the post-TRUMP era: Memecoins nearing the end, will SocialFi take over?

Original author: Tulip King

Original translation: Deep Tide TechFlow

Alpha Priority

• The market as a whole is healthy, but there are signs of over-expansion, and the next mainstream investment direction is not yet clear.
• Trumpcoin or may have become the peak of the Memecoin craze - should we turn our attention to SocialFi?
• Emerging hotspots: SocialFi, AI, Dinocoins, etc. are vying for market attention.

Market Status

Despite recent market volatility, overall, I believe the market is still in a healthy state. Looking at the three key indicators of the cryptocurrency market, the performance has been very positive.

Bitcoin high consolidation performance is strong

Bitcoin continues to consolidate near the top of the range, indicating a strong market sentiment rather than weakness. In the current situation, around $105,000 seems to be a key level for Bitcoin. This level reflects both the market's confidence in the long-term development of cryptocurrencies and the avoidance of excessive optimism risks.

Bitcoin is consolidating at high levels, showing healthy market signals.

Despite the lack of major news such as the Strategic Bitcoin Reserve (BSR) or comprehensive tax incentives for cryptocurrencies, the market has still made some minor progress. For example, the pardon of Ross Ulbricht is a low-key but important signal that the Trump administration has not completely abandoned its support for cryptocurrencies. Although progress in regulatory transparency has been slow, the overall trend is positive.

Steady Growth in Stablecoin Supply

Another positive signal is the continuous growth of stablecoin supply. From historical data, the increase in stablecoin supply is often a reliable precursor to institutional interest and enhanced market liquidity. It is worth considering: who is casting these stablecoins on such a large scale?

The continuous growth of stablecoin supply releases a bullish signal.

In terms of the scale of casting, institutions are indeed entering the market. If you have doubts about this, you can check the data from @whale_alert and other on-chain monitoring tools. Although it has not been clearly reflected in the performance of altcoins, capital is flowing into the market.

Expansion of the total market value of the cryptocurrency market


The total market value of cryptocurrency continues to grow.

Finally, the total market capitalization of the crypto market continues to expand. This growth, combined with Bitcoin's strong performance and the increase in stablecoin supply, further indicates that the market is not on the brink of collapse. Instead, the market is consolidating its foundation and preparing for the next phase of growth, in whatever form it may take. The current market does not resemble the scene of the end of the world.

Narrative Risk: Loss of Market Direction Sense

A significant reason for the lack of significant volatility in the current altcoin market is the lack of a clear narrative direction. This is the so-called "narrative risk" - due to the market losing its direction, funds may flow into the wrong investment themes, thereby increasing risk.

Take the recent TULIP craze as an example. Despite Trump not announcing a Strategic Bitcoin Reserve (BSR) or other major news, he did launch a Memecoin. Subsequently, Melania also launched a similar token, and there are even rumors that Barron may be involved as well. Traders have shown great enthusiasm for these opportunities, and I am no exception.

However, this sudden Memecoin craze has filled the market with uncertainty, leaving more questions than answers. Is this the super cycle of Memecoin, or a top signal? Should we reconsider AI tokens? Why is XRP's price chart performing so strongly? Including the market itself, it seems that no one can clearly point out which direction funds should be concentrated in at the moment.

Memecoins: The hype may be coming to an end

Unfortunately, I have to tell everyone that the trading of Memecoin may have entered its final wave. Trump's entry has overwhelmingly occupied the attention and market share in this field, and this influence cannot be underestimated. The question now is: Who else can launch a Memecoin with a similar scale? The answer is likely to be "no one".

![Hot narrative in the post-TRUMP era: Memecoins approaching the end, will SocialFi take over? ])https://img.gateio.im/social/moments-df1a96543ae739b2ca038e88eba3eeb4(

In Kel's words, we have already exhausted our "attention resources".

The essence of Memecoin is to transform attention into tokenized assets. They rely on attracting public attention and converting it into speculative funds. Over the years, this model has driven the explosive growth of the Memecoin market. However, with Trump's entry, this model may have peaked. Trump is not just an ordinary celebrity or internet celebrity; he represents the vast majority of attention globally. No other figure or event can rival his dominant position in the cultural and media fields.

Therefore, Memecoin as an asset class may have reached its peak. The growth potential of attention tokenization has been fully exploited. Of course, Trumpcoin may still have further gains, and may even lead other Memecoins to undergo a final parabolic rise. But this is more like an ending than a new chapter.

SocialFi (Clout and Yapster)

If the narrative of Memecoin is to continue to evolve, it needs to shift towards a more sustainable and scalable model. This is where the potential of SocialFi lies. By combining speculative enthusiasm with deeper, more personalized interactions, SocialFi is poised to extend the story of Memecoin. Instead of betting on cultural phenomena or celebrity tokens, SocialFi offers an opportunity to invest in personal relationships and community dynamics. From this perspective, it is a natural evolution of the Memecoin concept—from a simple conversion of attention to more meaningful interaction and long-term value creation.

![Hot narrative after the TRUMP era: Memecoins approaching the end, SocialFi taking over?])https://img.gateio.im/social/moments-b3a12098be56282ff999dc91391ff41d(

Why SocialFi is worth paying attention to

SocialFi is a potential hotspot worth paying attention to. Successful projects in this field may integrate elements of social media and online gaming to create a hybrid platform that is both attractive and profitable. It can be imagined that it will be a combination of 'social platform and online entertainment', with considerable potential for large-scale application.

Currently, there are two projects worth paying attention to:

• Clout: Clout focuses on tokenizing social influence, allowing users with a large number of followers (over 10,000) to create personal tokens. Built on Solana, it combines the monetization features of Friend.tech, simplifies token issuance, and integrates with decentralized exchanges (such as Raydium). Clout has achieved early success, with its first token $PASTERNAK reaching a market value of $80 million in just a few hours. Through a seamless registration process with credit cards and Apple Pay, Clout significantly reduces the entry barriers for Web2 users. However, its open structure disperses liquidity among multiple internet celebrities, which may weaken community cohesion.
• Yapster: Yapster is another innovative SocialFi project that integrates social media, gaming, and cryptocurrency, also built on Solana. In contrast, Yapster's approach is more focused, rallying the community around a common goal rather than dispersing liquidity among multiple internet celebrities. Users can participate in daily game shows, pay a 0.25 SOL entry fee to create and vote for memes. Winning memes can even be minted into tokens, with distribution tied to participants' scores. This model focuses on a single meme rather than numerous internet celebrities, creating a stronger and more unified liquidity flow. Yapster's invitation-only beta testing further promotes a closely-knit, actively engaged community. A notable example is that its first token reached a market value of $25 million in just 10 minutes, demonstrating its strong user participation and value creation capabilities.

@yapsterxyz: We have learned that many users have encountered lag and other issues during gameplay! Currently, we are working day and night to fix these issues and resolve them as soon as possible. Thank you very much for your understanding and patience during the Beta testing phase.

![After the TRUMP era, the hot narrative: Memecoins near the end, will SocialFi take over?])https://img.gateio.im/social/moments-3e6e6dfd98a64d4c769934e7f83e2df2(

Stability issues caused by excess demand are often seen as bullish signals in the market.

While Clout offers many advantages to influencers in terms of scalability and operational simplification, I prefer Yapster's centralized mechanism and community-driven design. It focuses on converting public attention into tangible value, which is more sustainable and appealing compared to dispersing liquidity among numerous individuals.

Dinocoins (XRP, HBAR, XLM)

"Things that have died never truly disappear, but are reborn in a stronger form." - George R. R. Martin

Dinocoins (including XRP, HBAR, and XLM) are typical 'hated trades' in this round of the cryptocurrency cycle. This trading pattern is effective because it reveals the emotional bias of market participants. The market's skepticism and disdain for these assets often mean that investors are underallocated to them, resulting in a large amount of funds remaining on the sidelines. When these assets start to rebound, investors are often forced to buy, further driving up prices.

![The hot narrative of the post-TRUMP era: Memecoins near the end, SocialFi takes over?])https://img.gateio.im/social/moments-431c84af4acc190d913aef7177d73314(

Price chart of Bitcoin and XRP.

For a long time, Twitter users in the cryptocurrency community have regarded Dinocoins as outdated relics, believing that they have lost competitiveness in the face of updated and more appealing narratives. However, it is this disdain that has created an opportunity for their unexpected revival.

Why is it important to pay attention now?

Despite its poor reputation on Twitter, Dinocoins has shown significant strength in price performance and institutional adoption. Here are the reasons worth paying attention to:

• Institutional Recognition: These tokens have strengthened their 'more formal' positioning in the cryptocurrency field, focusing on real-world applications and partnerships. For example, the new stablecoin RLUSD launched by Ripple demonstrates its efforts to integrate into mainstream finance. The partnership between XRP and Santander, as well as HBAR's collaboration with the World Gemological Institute, further proves their commitment to institutional adoption.

![Hot narrative in the post-TRUMP era: Memecoins approaching the end, SocialFi taking over?])https://img.gateio.im/social/moments-f573dd5d090d5808d7c15e5dfb317f6e(

(Atypical XRP Army account - a bullish view published by an excellent research team)

• Regulatory Layout: These tokens are in a favorable position with the expectation of a more friendly cryptocurrency regulatory environment. The ISO 20022 compliance of XRP and XLM (which is closely related to compatibility with traditional financial systems) enhances their credibility. In addition, rumors about ETFs (exchange-traded funds) around XRP and HBAR add another layer of appeal, although Bitcoin ETFs remain the main focus of the market.

The contrast is very apparent: on one hand, many cryptocurrency enthusiasts scoff at them; on the other hand, institutions may be quietly accepting these tokens. Whether you like them or dislike them, Dinocoins is taking action, which may redefine their role in the market. Their focus on compliance, partnerships, and real-world use cases could ultimately become a winning strategy, especially if they can win the favor of regulatory agencies.

Operation of hedge fund's liquid tokens

If you still believe in the concept of "fair launch," then you need to face a reality: the lifecycle of most tokens is not as democratic as it seems on the surface.

• Team Development Project: Project teams usually develop projects with decentralized finance or infrastructure as their vision, and create a token as part of the ecosystem.
• VCs provide funds in exchange for locked tokens: Venture capital firms (VCs) provide funding to projects in exchange for locked or phased unlock tokens. In theory, this arrangement binds the interests of VCs to the long-term success of the project, as the tokens cannot be immediately sold.
• VCs sell unlocked tokens to liquidity off the market: When the tokens start to unlock or are released in stages, VCs usually sell these tokens to liquidity off the market through over-the-counter (OTC) transactions. These liquidity providers are typically well-capitalized institutions that purchase these tokens in bulk at a discounted price.
• Selling tokens with available liquidity when the market trading volume is high (you are currently in this phase): After obtaining these tokens, available liquidity will try to create or take advantage of market trends. They promote their narratives through platforms such as Twitter, attract market attention and increase trading volume, and then sell tokens at high prices to profit under appropriate conditions.

Actual situation

![Hot narratives after the TRUMP era: Memecoins near the end, SocialFi takes over?])https://img.gateio.im/social/moments-b5722664e497e1ef5529fc9a170f396f(

Taking Raydium as an example, its token seems to have mostly unlocked at present.

Between 2021 and 2023, a large amount of venture capital has poured into the cryptocurrency market, especially in DeFi and infrastructure projects. These investments are typically made in the form of locked or phased-release tokens. However, with most tokens now unlocked, VCs need to liquidate these assets to deliver investment returns to their limited partners (LPs). Starting from mid-2024, many renowned VCs are calling for the raising of more liquid funds. These funds are used to purchase these illiquid tokens through over-the-counter (OTC) trading, providing VCs with a market for liquidating unlocked tokens.

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Instead of blaming the participants, it is better to understand the rules themselves. VCs are encouraging people to raise liquid funds to take over their tokens through OTC methods, thus starting to distribute the profits from the previous round of cycles to LPs.

The relationship between VCs and liquidity and the market is not malicious, but a natural phenomenon of capital flow in the crypto ecosystem. VCs need ample liquidity to acquire their tokens, which are usually sold at a low price due to low liquidity. In turn, liquidity providers try to create or amplify market narratives through platforms like Twitter to attract market attention and increase trading volume, in order to sell these tokens at a high price for profit when market conditions are favorable.

![Hot narratives after the TRUMP era: Memecoins nearing the end, SocialFi taking over?])https://img.gateio.im/social/moments-76fd15aed9ebb549c5358113495c30cf(

The alignment of market narrative and time nodes.

This is not necessarily malicious behavior, and I even bought some of these tokens myself. But you need to know your counterpart and have a clear understanding of the token's lifecycle.

AI Agents and DeFAI

DeFAI may replace many existing cryptographic tools. If enough functionality is integrated, a DeFAI router can serve as a yield aggregator, a decentralized exchange )DEX( and perpetual contract aggregator, investment portfolio management tool, and even more.

However, I remain skeptical of AI agents that claim to 'make money for you'. Market dynamics dictate that excess returns )alpha( will gradually diminish over time. Nevertheless, DeFAI still has the potential to provide crucial support to individual investors by simplifying personal trading strategies and portfolio management.

Currently, AI is at a critical development point. The AI hotspots have gone through several stages: first, infrastructure projects like Bittensor, then intelligent body projects like AIXBT, followed by intelligent body launch platforms (such as Virtuals) and frameworks (such as AI16Z). Now, the latest trend revolves around DeFAI.

) An emerging important trend

AI is undoubtedly one of the most important market hotspots in this cycle, but its long-term development direction is still unclear. The rise of DeFAI is particularly worth attention, as it does not promise magical 'money-making AI', but focuses more on practical functionalities, such as simplifying the process of revenue optimization, trading, and portfolio management.

The uniqueness of DeFAI lies in its potential to integrate the fragmented ecosystem of current crypto tools. Imagine a router that seamlessly integrates a variety of financial tools, significantly reducing user operational friction. While the idea of a "profit-making AI agent" may sound unrealistic, DeFAI's advantage lies in helping users execute their strategies more efficiently.

Ever-changing market trends

Like all major market hotspots, the AI field is evolving rapidly under the promotion and experimentation. From the initial promise of AI bringing financial freedom to the actual functionality provided by DeFAI today, this change reflects the market's gradual shift from fantasy to practical applications. It is foreseeable that AI will continue to be a core theme, but the ultimate winners will be those projects that can meet practical needs and avoid over-promising.

The crypto market is still full of unknowns. Market hotspots change rapidly, and the future winners will be those who can predict the flow of public attention in advance. Stay sharp and flexible, while keeping an eye on the big picture, don't be confused by short-term fluctuations.