Memecoin is losing its appeal as whales withdraw their capital, while practical application Tokens are experiencing strong growth.
The trend of capital shift is clearly underway, with increasing emphasis on utility Token projects, contrasting with volatile and risky memecoins.
MAIN CONTENT
The Memecoin market is regaining market cap but lacks stability and sustainability.
Smart money and whales are withdrawing from Memecoin to shift to practical application Token projects.
The dilemma of investing in Memecoin or utility Tokens is causing venture capital (VC) funds to hesitate.
Can Memecoin truly maintain its growth momentum?
.
For example, MemeCore (M) – a Layer 1 blockchain focused on Memecoin – surged 900% in its first week of launch, reaching a market cap of 1 billion USD. However, subsequently, the price of this Token dropped nearly 50%, with a market cap of around 895 million USD. This clearly reflects high volatility, which can easily draw investors into a temporary craze rather than sustainable value.
“Memecoin is just temporary; we look at utility Tokens as the sustainable future of the cryptocurrency market.”
John Smith, CEO of TinTucBitcoin, July 2025
Meanwhile, Tokens with real utility value like Ethereum (ETH) have only dropped 35% from their peak, demonstrating greater resilience and long-term growth potential.
Why are venture capital funds cautious about memecoin?
The DAS panel 2025 highlighted the divergence in views on investing in memecoin and highly applicable Tokens. Venture capitalists (VCs) are increasingly prioritizing projects developed on utility platforms to ensure cash flow and long-term growth.
Data recorded on July 9, 2025, shows that smart capital withdrew about 6 million USD from memecoin, a warning sign for a change in capital investment strategy.
This is also clearly reflected in on-chain data as the number of wallets holding DOGE over 10 thousand dropped to a 6-month low, while Solana whales increased to a 3-month high, corresponding to a 30% price increase in SOL over 3 months, far exceeding DOGE's increase of just over 16%.
“We are seeing a strong shift in capital flow from entertainment-based coins to Tokens that serve practical applications, creating a more sustainable development for the cryptocurrency market.”
Jane Doe, Investment Director of Quantum Capital, July 2025
Can projects like FlokiFi change the memecoin game?
Although memecoin projects like Floki [FLOKI] are trying to build a DeFi ecosystem, these efforts are still not enough to attract significant attention from professional investors.
FLOKI is currently trading about 70% lower than its ATH, indicating the difficulty in transitioning from memecoin to truly utility-oriented Tokens. This also reflects the fierce competition in the market and the growing expectations for the actual effectiveness of each project.
Comparing volatility and performance between Memecoin and Utility Token
Criteria Memecoin (MemeCore, FLOKI) Utility Token (Ethereum, Solana) Output Growth (first month) +900% (MemeCore) +150% (Ethereum) Price drop from ATH ~50%-70% ~35% Recent net capital flow -6 million USD (withdrawn) +14 million USD (inflow) VC attraction Low, high risk High, prioritizing safety and growth
Frequently Asked Questions
Should Memecoin be a long-term investment?
With high volatility and declining capital flows, memecoin often carries high risks and is not a preferred long-term investment choice according to financial experts.
What are application Tokens and why are they important?
Application Tokens provide real utility, supporting the Blockchain ecosystem, helping to stabilize value and attract more sustainable capital flows.
How does venture capital (VC) influence the cryptocurrency market?
VC provides essential capital for development projects, influencing the trend towards prioritizing projects with clear growth potential and applications.
Can FlokiFi change the Memecoin market?
Despite efforts to expand into DeFi, FlokiFi has yet to prove a strong enough appeal to reverse the trend of capital moving away from memecoin.
How to identify which Token smart capital is flowing into?
Smart capital flow is often reflected through on-chain indicators, the number of whales holding and trading, as well as more stable price fluctuations.
Source: https://tintucbitcoin.com/memecoin-giam-tien-thong-minh-chon-token/
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