Matrixport Investment Research: Observation of BTC, ETH and MEME coin ecology under the rotation of the crypto market

The allocation value of BTC in institutional investment portfolios has been further reflected, while the performance of ETH and some altcoin ecosystems has diverged. Although ETH implemented transaction fee optimization in March 2024, it still needs to promote more innovation in the increasingly competitive public chain ecosystem. At the same time, the activity of the MEME coin market has fallen after a rapid rise, and the market risk appetite has cooled down.

BTC market dominance rises, market tilt is obvious

BTCs market dominance has steadily increased over the past year. After Trumps victory in November 2024, the markets expectations for BTC as a potential strategic reserve asset increased, pushing the price of BTC close to $100,000. However, as the December FOMC meeting clearly maintained a relatively tight monetary policy, the markets expectations for liquidity easing cooled, and investor sentiment gradually became cautious.

The core logic of the market lies in the adjustment of capital flows. Recently, funds have gradually flowed to relatively low-risk assets, and BTC has shown relative stability due to its higher market recognition and liquidity. In contrast, the altcoin market has been affected by greater volatility, and the trading activity of some high-risk assets has declined. This capital rotation trend reflects the asset allocation tendency of market participants in the face of tightening liquidity.

The ETH ecosystem seeks optimization in competition, and institutional demand remains to be released

ETH implemented transaction fee optimization in March 2024 to improve network efficiency and user experience. However, despite the reduction in transaction costs, ETH still faces competitive pressure in some application scenarios. Solana and other public chains have achieved growth in some areas with lower transaction costs and faster settlement speeds, and ETHs Layer 2 solution is gradually being promoted to meet these challenges.

The launch of ETH ETF has attracted some institutional attention, but its market impact still needs to be observed. Compared with BTC ETF, the market demand for ETH ETF is still relatively limited, mainly because its functional attributes as a smart contract platform are different from the value storage attributes of BTC. In the future, the institutional adoption of ETH may rely more on the further maturity of the DeFi ecosystem and the widespread application of Layer 2 solutions.

MEME coin market activity declines, investors adjust risk preferences

In 2024, Pump.fun, as a decentralized token issuance platform, promoted the activity of the MEME coin market, and Solana and its DEX platform Raydium also benefited in the process. However, as market sentiment changed, the speculative demand in the MEME coin market cooled down, and the daily issuance of new tokens on the Pump.fun platform decreased from the peak period.

Adjustments in the MEME coin market may be related to changes in the overall risk appetite of the market. In the early stages, MEME coins attracted a large amount of short-term capital inflows and boosted trading activity in the Solana ecosystem. As the prices of some highly volatile assets fell, market speculation weakened, and some investors began to re-evaluate their holdings. This trend is particularly evident in the meme coin market, where the inflow of funds to new projects has slowed recently, and some trading volume has been concentrated on more mature projects.

Large holders adjust their strategies, and fund rotation affects market structure

Recent data shows that the number of large addresses holding more than 10,000 SOL has decreased, which may indicate that some early investors are adjusting their holdings. In contrast, BTCs market share remains stable, and some funds may be rotating from more volatile assets to asset classes with more long-term allocation value.

This trend is also consistent with the characteristics of the market cycle. In the early growth stage, funds tend to flow into high-volatility assets to obtain higher short-term returns. During the market adjustment period, investors tend to reduce high-risk exposure and turn to more stable assets. The increase in BTCs market share and the outflow of funds from the Solana ecosystem reflect this market style shift.

Macroeconomic policies, liquidity environment and market confidence will become key variables

The future evolution of the market will still be affected by the combined influence of macroeconomic policies, liquidity environment and market sentiment. A core variable in the current market is the 암호화폐currency regulatory policy that the US government may introduce. The market generally expects that the new government may promote a clearer regulatory framework.

The direction of the Federal Reserves monetary policy remains the focus of market attention. Although the market has certain expectations for liquidity easing in the first half of 2025, there is still uncertainty about the pace of policy adjustments. If the liquidity environment tightens, the market may face greater funding pressure, and the relative stability of mainstream assets such as BTC may further increase.

위의 견해 중 일부는 Matrix on Target에서 나온 것입니다. 문의하기 Target에 대한 Matrix의 전체 보고서를 받으세요.

면책 조항: 시장은 위험하며 투자는 신중해야 합니다. 이 기사는 투자 조언을 구성하지 않습니다. 디지털 자산 거래는 매우 위험하고 불안정할 수 있습니다. 투자 결정은 개인 상황을 신중하게 고려하고 금융 전문가와 상의한 후에 내려야 합니다. Matrixport는 이 콘텐츠에 제공된 정보를 기반으로 한 투자 결정에 대해 책임을 지지 않습니다.

This article is sourced from the internet: Matrixport Investment Research: Observation of BTC, ETH and MEME coin ecology under the rotation of the crypto market

Related: Multicoin Capital: 2025 Frontier Narrative

Source: Multicoin Capital Compiled by Odaily Planet Daily ( @OdailyChine ) Translator ｜Azuma ( @azuma_eth ) Editors Note: Multicoin Capital may be one of the most controversial VCs in the industry, but it also has the most convincing track record. At the end of 2024, Mike Dudas, founder of 6th Man Ventures and former founder of The Block, revealed that Multicoin Capital has achieved an 18.6-fold return since the market bottomed out in 2022. Hasseb Qureshi, a partner at another well-known VC Dragonfly Capital, also gave a high evaluation of Multicoin Capital. Hasseb even praised Multicoin Capital co-founder Kyle Samani as the best investor in the cryptocurrency field: As competitors, Dragonfly and Multicoin are always at loggerheads, but experts know experts, and investing is like a sport, and Kyle is…