The rise of the attention economy: MEME coin catalyzes the crypto industry into a new cycle of "retention and competition"

I saw someone in the English community saying that Meme Coin ruined this cycle. Although I have been calling for "technical narrative + long-termism" most of the time, I still have to objectively sing a different tune: Meme Coin did not "ruin" this cycle, but instead accelerated the maturity of the industry as a market catalyst:

1) The market has transitioned from "technology is king" to "attention is king", and Meme Coin has become the most intuitive embodiment of this transformation. Most projects with technical narratives have a roadmap delivery cycle of three to five years. The market has lost its patience to wait, believe, and entrust, so it has given Meme Coin a time window to attract liquidity through the short-term wealth Fomo effect.

2) Meme Coin forced the technical narrative to innovate itself. The involutionary model of "technical packaging" of VC coins in the past has reached a dead end. The era of harvesting leeks by financing valuation, technical packaging, and concept stacking has ended. Technical projects are forced to return to real delivery, because investors have tasted the sweetness of "simple and straightforward, clear wealth effect" in Meme Coin, and can no longer accept those "technically complex but long-term no delivery" projects.

3) Meme Coin has expanded the boundaries and foundation of the entire market. No matter how sophisticated the technical narrative is, it can only attract some elite groups who can understand it. Mass Adoption requires an interactive method that is simple, easy to understand and can quickly generate consensus.

When a large number of ordinary users enter the market because of Meme Coin, some of them will inevitably conduct deeper ecological exploration, which precisely brings an unprecedented incremental user pool to technology projects and solves the long-standing dilemma of "no one using" technology projects.

4) The Meme craze will not cover the entire cycle, and its overflowing market vitality will benefit most of the crypto ecosystem. The nature of hot money seeking profits determines that Meme Coin cannot continue to generate wealth effects. When most people have seen the two sides of short-term wealth and zero, they will naturally look for more balanced investment targets (tend to be more stable investors).

At that time, technology projects that truly solve practical problems, establish user stickiness, and have a clear business model will usher in valuation reconstruction and complete the transformation from concept to value. Therefore, for technology narratives, this is not the end, but the beginning of Nirvana rebirth.

5) Meme Coin is a thorough reshuffle of the high FDV and low circulation model of VC coins. In the past, the VC-dominated financing model created a deformed market structure of "high valuation and low circulation", which led to a general decline after TGE. This market structure left almost no room for ordinary investors to rise in value, and killed the Crypto dream of retail investors to get rich by holding coins.

On the contrary, although the risks are huge, Meme Coin has reawakened the vitality of the market with its transparent, simple and equal participation of everyone, allowing the market to return to a more fair and transparent competitive environment. It is hard to say that the shrinking market space and forced withdrawal of some VC institutions are related to the increasing mainstreaming of MEME coins.