In a recent tweet that's sparking conversations across the crypto community, journalist Laura Shin shared a clip from her Unchained podcast featuring Guy Young, the founder of Ethena Labs. The key message? The altcoin market cap hasn't budged since 2021, sitting at around $1.2 trillion, but demand is lagging far behind. Young argues it's time for crypto to mature—fewer tokens flooding the market and more solid, investable businesses that can attract traditional finance (TradFi) players.
For those new to the terms, altcoins are any cryptocurrencies other than Bitcoin, including everything from established projects like Ethereum to the wild world of meme tokens. Market cap, or capitalization, is basically the total value of all coins in circulation multiplied by their price. So, when Young points out that altcoin market cap is stagnant despite years of development, it's a red flag that supply is outpacing real demand.
Diving into the clip, Young expresses concerns about the "excess amount of supply coming to the market from altcoins" with not enough demand to match it. He highlights how the industry needs to "grow up" and create businesses that are appealing to equity markets and TradFi investors. This isn't just talk; it's a call for crypto projects to shift from token launches that often feel like quick cash grabs to building sustainable models with real utility and revenue streams.
Now, let's connect this to meme tokens, which are our bread and butter here at Meme Insider. Meme coins like Dogecoin or newer ones inspired by internet culture have exploded in popularity, but they often exemplify the supply overload Young is warning about. These tokens thrive on hype and community, which is awesome for short-term fun and gains, but many lack the underlying business fundamentals to sustain long-term value. As Young notes, the flood of new tokens— including memes—dilutes liquidity and makes it harder for quality projects to stand out.
Think about it: in 2024 alone, thousands of meme tokens launched on platforms like Solana, each vying for attention in a crowded space. While some hit viral success, most fade quickly, leaving investors holding bags. Young's perspective suggests that for meme tokens to evolve, creators might need to think beyond the meme—perhaps integrating real-world utilities or partnering with established businesses to become more "investable."
This episode of Unchained, titled "Which Types of Crypto Assets Make for Good Treasury Companies?", also features Rob Hadick from Dragonfly and delves into topics like Digital Asset Treasuries (DATs) and altcoins going public. For instance, they discuss StablecoinX merging with a SPAC to list on Nasdaq, anchored by Ethena's ENA token. This could be a game-changer, showing how crypto assets can integrate with traditional markets.
If you're into DeFi (decentralized finance, which lets you lend, borrow, and trade without banks), Ethena Labs itself is a prime example of innovation. They offer synthetic dollars like USDe, backed by hedged positions, providing yields without relying solely on token inflation.
Young's insights come at a pivotal time. With Bitcoin ETFs bringing in institutional money, the pressure is on altcoins and memes to prove they're more than speculative plays. Projects that focus on real yields—actual earnings from operations rather than just printing more tokens—could lead the next wave.
Curious to hear the full discussion? Check out the Unchained podcast episode or watch the clip in Laura Shin's original tweet. What do you think—will meme tokens adapt by building more business-like structures, or will the fun, chaotic side prevail? Drop your thoughts in the comments below, and stay tuned to Meme Insider for more on how these trends shape the meme coin landscape.