I personally feel like the meme coin market is entering the second half. A few that shot up quickly around Labor Day are now trending down, with only a couple of super high-cap coins still holding above 1B+. A few reasons for this:
One is that mainstream altcoins are gradually picking up steam, and with high open interest, traders are able to leverage their positions. With other options available, people are less willing to FOMO into meme coins;
Another reason is that after a few big players, everyone’s threshold for market cap has increased. They won't short unless prices reach relatively high levels, and arbitrage funds have gotten smarter about not countering fees. It’s tough for the whales to find counterparties.
Lastly, the last batch of successful market makers has multiple projects in hand now, so it's hard to say if they have enough capital to cover.
One is that mainstream altcoins are gradually picking up steam, and with high open interest, traders are able to leverage their positions. With other options available, people are less willing to FOMO into meme coins;
Another reason is that after a few big players, everyone’s threshold for market cap has increased. They won't short unless prices reach relatively high levels, and arbitrage funds have gotten smarter about not countering fees. It’s tough for the whales to find counterparties.
Lastly, the last batch of successful market makers has multiple projects in hand now, so it's hard to say if they have enough capital to cover.