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Welcome back to 0xResearch. Here's what we’ve got for you today:

• CT is silent and uninterested.

• Everybody is talking about the memecoin supercycle (still).

• BTC and ETH continue to chop.

Memecoin Supercycle!

Hello and guten morgen,

Every time I write the newsletter, we tend to be chopping in a seemingly unending range. Today is no different! BTC is sitting at (hopefully) the range lows of 62K, ETH is firmly sitting at 3.4K, and it seems that most of CT (including me) is bored.

The incessant chants of the "memecoin supercycle" continues. Now, and for the past few months, everybody, from crypto twitter to Reddit r/cryptocurrency, is convinced that the financial nihilism and gambling epidemic fueled, memecoin zhupercycle is a given, and we will keep running up Solana or Base memecoins.

It’s difficult to be bearish memes (I am not bearish memes), especially when memecoin focused protocols make 100x the revenue of non-memecoin protocols and every week there’s a new flavor of memes that goes to 1 billion United States dollar market cap. That’s why I will not be bearish memes. It’s the easiest form of token to bet on, they’ve historically done well (DOGE seems to always outperform BTC) and in general, it’s difficult to bet against an asset subclass with higher risk that exists within an asset class that seems to for a variety of reasons (pick your poison: halving, global liquidity metrics, tokenization etc.) go up.

My only gripe is that the correction (lowering FDVs, not launching random L2s, building interesting dApps and games, launching legit tokens that go up) has not yet arrived. There are a few that have done well, Tapioca’s TAP, SankoGameCorp’s DMT and many more, but by and large the markets are still relatively uninteresting. It’s easy to sell memecoins to people: if it goes up you become rich! Wow! It’s tougher to make it not fatiguing and taxing, and ensuring that people who trade memes are not mercenary. There is little hope and optimism in trading memes. You can convince people that it’s potentially the next SHIB (I hold a few that fit this category, I’m sure you do as well), but it’s not as convincing as "we’re building a new financial system from the ground up, it’s going to change everything".

I know some people think that if someone criticizes the memecoin supercycle it means that they are sidelined, coping or not exposed. That’s not the case. I just think that the market is getting increasingly tired of it. I know that’s not a revolutionary take, but I think you can also see it in the charts. I am still interested in memes, I have exposure to them and I am NOT coping. It's potentially extremely rewarding. Memes do really well every cycle. Even throughout the bear there were plenty of memes. For the past few months memes were extremely lucrative, especially if you were tapped in. But if everybody is now talking about the memecoin supercycle, maybe it’s time to take a step back and also focus on other parts of the market, where there is value, and where it is less taxing.

Hope you all have a nice Tuesday.

– Boccaccio (X:@tripleboccaccio)

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The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.