According to Ella Zhang, head of YZi Labs (formerly Binance Labs), the cryptocurrency market is witnessing a shift in investment trends, with funds flowing back from memecoins to fundamentally stronger altcoins. Zhang stated that the momentum of memecoins has decreased due to their lack of solid foundations. Zhang explained that community-driven discourse initially provided a more accessible entry point for investors, but the sustainability of these assets remains questionable. “From the end of the first quarter, people’s interest in venture-backed tokens began to wane, while the popularity of memecoins increased, leading to the so-called memecoin craze,” he said. Platforms like Pump.fun and similar initiatives have reshaped early-stage altcoin investing by making it more accessible, transparent, and community-focused. These platforms focus primarily on memecoins, experimental tokens, and community-driven projects, allowing nearly anyone to launch and trade new crypto assets. Related News: Head of Research Company Talks About Bitcoin's Performance in the Coming Days: Bearish or Bullish? But Zhang noted that this trend has started to reverse in recent months. Despite the easy accessibility of memecoins, their short-lived popularity has led investors to refocus on altcoins backed by venture capital. “According to CoinMarketCap data, this trend is now slowing down. The ratio of memecoin market cap to non-memecoin altcoin market cap is decreasing, indicating that funds are gradually flowing back into non-memecoin coins,” he said. He noted that fundamental value is important in sustaining any asset. “For any asset to have enduring or increasing value, it requires one or more core services, businesses, products, technologies or new innovations that will drive price increases. Without fundamentals, value cannot be maintained,” he said. *This is not investment advice. Continue Reading: Binance’s Investment Head Talks About Memecoins’ Recent Underperformance
