Memecoin Triggers Innovation, Crypto Expert Chris Burniske Says

The dominance of memecoin in the current crypto market cycle triggers a major reaction from other projects. According to Chris Burniske, a venture

Jakarta - The prevalence of memecoins in the present crypto market cycle is garnering a significant response from other projects. According to Chris Burniske, a venture capitalist and crypto pundit, the phenomenon is serving as a catalyst for the development of more fundamental digital assets.

In an upload to his over 303,400 followers on platform X, Burniske stated that the pressure from memecoins is forcing other crypto projects to innovate and differentiate themselves.

Memecoins Driving Innovation in Crypto

Burniske highlighted that memecoins, like Dogecoin (DOGE), are putting positive pressure on infrastructure tokens and applications ("infrastructure-and-appcoins"). He anticipates that these projects will begin focusing more on revenue and other financial metrics to court the attention of investors, especially amid the increasing global regulatory attention.

"Memecoins are forcing the infrastructure tokens and applications to show revenue flows to their holders. As regulation gets finer-tuned, the governance tokens will morph into cash flow tokens," wrote Burniske.

He also anticipates that token valuations will become more akin to those of stocks in traditional finance (TradFi), where investors begin valuing crypto assets using conventional financial methodologies.

Burniske Foresees the Rise of Fundamental-Based Tokens

Burniske went on to predict the growth of fundamental-based tokens in the future, stating that projects that demonstrate resilience in the bear market will attract TradFi investors who are starting to understand the value of crypto assets.

"The infrastructure tokens and applications that show a strong foundation during the bear will slowly be able to build value accrual cycle after cycle—not as fast as the memecoin gains, but the long-term growth will be rewarding for those who can stomach the memecoin whipsaw," added Burniske.

However, he also cautioned that memecoins, while capable of generating immense gains, come with a high degree of risk. "Memecoins have no upper bound because they are not fundamental based, but they also have no lower bound," said Burniske, adding that this lesson will be learned painfully by investors in the next bear market.

Some Iconic Memecoins Will Endure: Burniske

Despite his commentary, Burniske predicts that some memecoins, like Dogecoin, will continue to endure and become household names in the crypto space. "DOGE will remain a largely known name," he concluded.

Memecoins have certainly become a prominent narrative in the crypto industry, but Burniske's analysis underscores the need for innovation and fundamental strength to build a more robust crypto ecosystem.