Table of Contents
- Introduction
- 1. Smart Money’s Continued Interest in Memecoins
- 2. The $2,000 to $43 Million PEPE Trader Story
- 3. The End of the Memecoin “Supercycle”
- 4. Trump Token’s Impact on the Memecoin Market
- Conclusion
Introduction
In the wild west of crypto, even as the dust settles on what many are calling the end of the memecoin “supercycle,” something fascinating is happening. The blockchain’s most successful traders—the so-called “smart money”—haven’t given up on the meme dream just yet. 🚀
While normies might be running for the hills after getting rekt on Trump-related tokens, the whales are still swimming in the memecoin ocean, albeit with a bit more caution than before. Let’s dive into why the smartest players in crypto are still aping into dog coins even as the broader hype cycle cools down.
1. Smart Money’s Continued Interest in Memecoins
According to Nansen’s blockchain intelligence platform, crypto’s elite traders are maintaining their hunt for quick profits in the memecoin sector despite market indicators suggesting the broader “supercycle” is winding down.
Nicolai Sondergaard, a research analyst at Nansen, explained during Cointelegraph’s Chainreaction live show:
“There was the recent meme surge and smart money is always happy to capitalize on that. But they’re also happy to rotate out of these quickly as well. The recent meme frenzy was just a fun play they worked on, while the broader market is sorting out the direction because memecoins aren’t necessarily affected by the same macroeconomy as Bitcoin and Ethereum.”
What’s particularly telling is that these sophisticated traders are simultaneously increasing their stablecoin holdings—a classic sign of growing caution in uncertain markets. This dual strategy reveals a nuanced approach:
- Quick entry and exit from memecoin positions
- Building stablecoin reserves for safety
- Treating memecoins as separate from macro-influenced assets like BTC and ETH
In essence, smart money is playing both sides of the market—ready to YOLO into the next PEPE while keeping dry powder for when the music stops. Based AF if you ask me. 😎
2. The $2,000 to $43 Million PEPE Trader Story
If you needed proof that memecoin magic still exists, look no further than the legendary PEPE whale who turned a measly $2,000 into a mind-blowing $43 million. This isn’t ancient crypto lore—this happened in March 2025!
While this crypto chad didn’t perfectly time the top (who does?), they still managed to lock in over $10 million in realized profit despite PEPE’s subsequent 70% decline from its all-time high. Talk about diamond hands turning into lambos! 💎🙌
This case study exemplifies exactly why smart money keeps an eye on the memecoin sector. In what other market can you achieve a 21,500x return in such a short timeframe? These outlier opportunities continue to attract sophisticated traders who understand the risk-reward dynamics at play.
3. The End of the Memecoin “Supercycle”
While smart money still hunts for memecoin gems, data suggests we’re witnessing the end of what analysts have dubbed the memecoin “supercycle.” The primary evidence comes from Pump.fun—the Solana-based token launchpad responsible for over 70% of all memecoins launched on the network.
Key indicators of the cooling memecoin market include:
- Total active wallets on Pump.fun dropped from 2.85 million in January to just 1.44 million by March’s end
- Peak usage metrics coincided with Trump-related token launches
- Consistent decline in engagement metrics since January 2025
A Binance spokesperson pointed to several factors contributing to this decline:
“Market sentiment also appears to have shifted amid unverified reports of insider trading linked to subsequent high-profile tokens such as $MELANIA and $LIBRA. Broader macroeconomic uncertainty, including volatility driven by global tariff policies, may have further dampened speculative appetite for memecoins more generally.”
In other words, once normies start getting rug-pulled on politically-themed tokens and macro FUD intensifies, even the degen appetite for memecoins begins to wane. Who could’ve seen that coming? 🤔
4. Trump Token’s Impact on the Memecoin Market
The launch of Official Trump (TRUMP) token on January 18th appears to have marked the peak of memecoin mania. Like many politically-themed tokens before it, TRUMP followed the classic memecoin trajectory—massive pump followed by an equally impressive dump.
TRUMP’s price action tells the story:
- Reached a peak of $75.35 on January 19th
- Currently down more than 87% from all-time high
- Dropped an additional 8% in the past week alone
This pattern isn’t unique to TRUMP—it’s becoming the standard lifecycle for high-profile memecoins. The rapid boom-and-bust cycle has become so predictable that sophisticated traders now time their entries and exits with increasing precision, while retail investors typically end up holding the bag.
The TRUMP token case study demonstrates why smart money approaches memecoins with a short-term trading mentality rather than a long-term investment thesis. When you know gravity always wins, you don’t stick around for the fall. 📉
Conclusion
The memecoin landscape is evolving, not dying. While the “supercycle” may be ending, savvy traders continue to find opportunities in this uniquely crypto phenomenon. The key difference is that they’re approaching these trades with increasing sophistication—getting in early, taking profits quickly, and maintaining substantial stablecoin reserves.
For retail investors, the lesson is clear: memecoins remain high-risk, high-reward endeavors that should represent only a small portion of a diversified crypto portfolio. The smart money isn’t abandoning memecoins, but they’re certainly not YOLOing their entire net worth into the next dog-themed token either.
As we move forward in this maturing market, expect to see more strategic approaches to memecoin trading from the most successful players. They’ll continue to hunt for speculative opportunities while maintaining the flexibility to pivot when market conditions change.
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Remember, in crypto, fortunes are made and lost in the blink of an eye—but knowledge and community are forever. Wagmi! 🚀
