The contradiction between the outbreak of BSC chain MEME projects and market differentiation

MEME tokens on the BSC chain continue to attract speculative funds. For example, the test token TST mentioned by CZ once soared to 41 million US dollars

The cryptocurrency market in 2025 is a strange sight. On the one hand, the outbreak of several BSC chain MEME projects has pushed the total market value to a high of over US$2 trillion, while the market differentiation is becoming increasingly apparent. Several hot MEME tokens, such as TST and CaptainBNB, have risen sharply due to community speculation and institutional attention. For example, test token TST, which was once mentioned by CZ, soared to US$41 million due to community speculation, and CaptainBNB rose by more than 13,000% in 6 hours after its launch. These projects have become the focus of retail investors with their “zero value support + social media fission” model.

However, most of these projects lack sustainable use cases or technological support, and their prices have plummeged after the hype died down. For example, TST was denied listing by Binance, leading to a decline of more than 90% from its peak. Moreover, the market funds have been diverted from mainstream tracks, such as Bitcoin and Layer2, to MEME coins, reflecting investors’ short-term gaming mentality during periods of policy uncertainty.

On the other hand, the market’s expectations for Trump’s policies have not been fully met, especially in terms of promoting Bitcoin and reducing the SEC’s role. The market value of TRUMP coin, issued by the Trump family, once exceeded US$12 billion, but it was later questioned as a “disguised corruption tool” by the media, and the “First Lady Coin” issued by his wife Melania further dispersed market funds, causing the price to fall sharply.

Although Trump promised to replace the SEC chairman and promote the strategic reserve of Bitcoin, the policy has been slow to be implemented, and the market’s optimism about “deregulation” has gradually faded. This has also affected the investment direction of institutional funds. For example, despite BlackRock’s application for an IBIT ETF, which is expected to be approved in the third quarter, most of the funds are still concentrated in Bitcoin ETFs, while the altcoin market lacks incremental funds. The MEME craze is more of an internal rotation of existing funds.

The short-term nature of liquidity release and the imbalance of market structure are the core contradictions behind the cold market. The U.S. Treasury released about $150-250 billion in liquidity through the TGA account, which drove a short-term rise in risk assets, but such operations are temporary and difficult to support a long-term bull market.

Moreover, the macroeconomic and policy uncertainty is still present. Trump’s trade protectionism policy pushes up supply chain costs, and core inflation may rebound to 2.8%-3%, forcing the Federal Reserve to maintain high interest rates and suppress risk appetite.

Furthermore, political risks are increasing. The U.S. Congress has debated the legality of politicians issuing tokens, and if legislation restricts it, the MEME track will face systemic risks.

In summary, the current crypto market is in a state of upheaval, with several contradictions and uncertainties needing to be resolved. The market differentiation is intensifying, and only a few projects may survive in the reshuffle.

As the world economy enters a new stage of transformation, macroeconomic stability and technological innovation will be the key drivers of market trends. Among them, the U.S. inflation rate and the Federal Reserve’s policy adjustments are still the focus of attention. If inflation falls below 2.5% in the second half of 2025, rising expectations of rate cuts may trigger a general rise in the crypto market, and Bitcoin is expected to hit $250,000 (Nexo forecast).

Moreover, as the dollar strengthens, investors in Latin America and Southeast Asia may increase their holdings of cryptocurrencies to hedge against the risk of currency depreciation, driving up demand for BTC, XRP, etc. This will also affect the investment strategy.

In the short term, it is recommended to reduce leverage and increase the proportion of stablecoins to cope with market fluctuations. In the mid- to long term, continue to invest in Bitcoin and Layer2 tokens, such as OP and ARB, which have good fundamentals and liquidity. However, set a strict stop loss for MEME coins and pay attention to the changes in trading volume and community activity.output:

In the short term, it is recommended to reduce leverage and increase the proportion of stablecoins to cope with market fluctuations. In the mid- to long term, continue to invest in Bitcoin and Layer2 tokens, such as OP and ARB, which have good fundamentals and liquidity. However, set a strict stop loss for MEME coins and pay attention to the changes in trading volume and community activity.output:

The U.S. Treasury’s liquidity release through the TGA account is expected to reach about $150-250 billion, which will provide short-term support for the crypto market. However, this operation is temporary and began in the fourth quarter of 2024, aiming to support government operations and maintain cash flow.

The U.S. Treasury’s liquidity injection will affect the crypto market in several ways. First, it will increase the overall liquidity in the market, which may lead to a rise in risk assets, such as cryptocurrencies and stocks. Second, it