Smart money seeks quick gains in memecoins

Despite signs that the memecoin "supercycle" may be ending, smart money traders continue to pursue speculative opportunities in this volatile market.

These traders, tracked by Nansen's blockchain intelligence platform, are known for their ability to quickly capitalise on trends and exit positions for profit.

Nicolai Sondergaard, a research analyst at Nansen, noted that smart money is always eager to capitalise on meme surges but also quick to rotate out of these positions.

"There was the recent meme surge and smart money is always happy to capitulate on that. But they’re also happy to rotate out of these quickly as well," he stated.

The recent surge in memecoins was seen as a "fun play" while the broader market sorts out its direction, as memecoins are less affected by macroeconomic factors impacting Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH).

A notable example of this speculative trading is a savvy investor who turned $2,000 into $43 million with the Pepe (CRYPTO:PEPE) cryptocurrency, though they missed selling at the peak and still made over $10 million in profit despite a 70% decline from its all-time high.

The launch of the Trump memecoin on January 18, 2025, may have marked the end of the memecoin "supercycle," with usage on platforms like Pump.fun declining significantly since then.

Total active wallets on Pump.fun dropped from 2.85 million in January to 1.44 million by March 31, reflecting a decline in investor sentiment and broader macroeconomic uncertainty.

Despite these challenges, experienced traders remain interested in memecoins for their potential for quick gains, even as the market evolves and becomes more cautious.