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.
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.
