Memecoins Impact the Liquidity of Altcoins

Some crypto industry observers are concerned about the broader impacts of the current memecoin craze among retail investors.

This trend could limit capital and the overall appreciation potential of the altcoin market, according to Edwin Mata, co-founder and CEO of Brickken, a European platform for real-world asset tokenization.

“A critical factor in this market dysfunction is the continued fragmentation of liquidity,” Mata told Cointelegraph, adding:

“The rise of memecoins promoted by influential individuals has distorted capital flows, diverting liquidity away from more established projects.”

“This trend adds an extra layer of volatility and speculation, making traditional market recovery patterns less predictable,” he concluded.