Speculative Assets Decline as Fundamental Revenue Drivers Resurface
The sentiment on Crypto Twitter indicates a shift from speculation to fundamental revenue drivers.
Key points include:
- The phrase "speculation is dead" reflects the declining popularity of memecoins.
- The launch of the LIBRA memecoin exposed questionable practices within the memecoin market.
- Despite low activity levels, evidence suggests memecoins are not completely fading; 187k new tokens were launched last week, generating $8.1 million in revenue.
- Clanker, a memecoin launchpad, recorded an all-time high of 10.8k launches recently.
- Memecoins are still viewed as a high-risk investment akin to gambling, driven by human behavior and blockchain accessibility.
- Fundamental revenue-generating apps/protocols are gaining traction as investors become more selective amid a saturated token market.
- Recent token buybacks from companies like Jupiter and Raydium signal a return to focusing on fundamentals.
- While token buybacks may mirror stock buybacks in traditional finance, their effectiveness in DeFi is debated, as growth opportunities remain significant for certain crypto products.
- Over-reliance on buybacks could indicate limited growth avenues for a business.
Investors should be cautious with token buybacks, recognizing they may not suit all situations.