Ethena Founder: Crypto-Native Capital may have run out of steam to pump meme coin valuations, tokens backed by TradFi endorsement will undergo a complete divergence from regular meme coins
BlockBeats News, July 25th, Ethena Labs founder Guy Young posted on social media: "One of my major concerns is that the native capital of crypto may have been exhausted, unable to propel meme coins past the previous cycle's peak. Observing the total nominal market capitalization peak of meme coins in Q4 2021 and Q4 2024, both stopped at around $1.2 trillion (a value that is almost identical after adjusting for inflation). Perhaps this is the global retail capital's valuation ceiling for 99% of meme projects?"
However, for tokens with real business operations, tangible products, and generating revenue for real users, there exists a massive blue ocean to expand channels to stock market institutional investors. Compared to the global stock market capitalization, the entire meme coin market is just a drop in the bucket. The current NAV premium arbitrage is clearly a flash in the pan, with Saylor being the only exception, ultimately due to its unique leverage advantage in its capital structure (quasi non-redeemable + quasi).
But why did Ethena still support StablecoinX's ENA treasury strategy? The core goal is to build a gateway for stock market funds to enter—these funds have a significant excess demand for stablecoins and digital dollar field's hyper-growth enterprises. This is unrelated to short-term NAV arbitrage; the key is to open the gate to an untapped capital pool. Ethena faces the well-known dilemma of VC unlocking pressure, and I have personally made countless mistakes in fundraising and still reflect on them. There is a severe capital misalignment in the crypto world: private VC capital far exceeds the liquid capital required to support token valuations, creating a mirrored opposition to the Web2 world (where private capital is only a fraction of the stock market).
Of course, this does not apply to all junk coins. Zero-revenue meme projects, even if dressed in an equity shell, remain air. But I firmly believe that for the few tokens that can obtain traditional financial endorsement and align with long-term growth trends, this will be a significant positive. Apart from mainstream coins, such tokens globally do not exceed 10, and they will ultimately differentiate completely from coins that have never attracted TradFi."
You may also like

Ethereum 2029 Strawmap Guide: Ultra-Fast Consensus, Native Privacy, and the "Acceleration Variables" Brought by AI

Altcoin ETF Surge: SOL and XRP Inflows Total $23 Million as Institutions Diversify
Key Takeaways Institutional interest in altcoin ETFs is expanding, with SOL and XRP showing significant inflows on March…

Vitalik Drops Ethereum Endgame Bombshell: ETH USD to $3,000?
Key Takeaways Vitalik Buterin introduces the “Sanctuary Tech” manifesto to address Ethereum’s non-financial limitations. A current lack of…

Exclusive: Yuliya Barabash Predicts the Most Regulated Could Be the Biggest Crypto Winners
Key Takeaways The aftermath of FTX and Celsius collapses has ushered a new regulatory era, reshaping the crypto…

iPhone Crypto Wallets Under Threat from State-Grade Malware
Key Takeaways: The Coruna exploit kit exploits 23 iOS vulnerabilities, threatening iPhone users’ crypto wallets. Initially state-level surveillance,…

Bitcoin Nears Two-Year ‘Make-or-Break’ Resistance: Future Implications
Key Takeaways Bitcoin’s price is approaching key resistance levels around $73,000, observed for the first time since early…

Bitcoin Price Prediction: Analyst Says $220,000 BTC Is Coming — But Only After This Happens
Key Takeaways: Bitcoin may experience a significant drop before the next major rally begins, potentially revisiting the $50,000…

Solana Price Outlook: All Eyes Focused on $95 — Could This Trigger New SOL Highs?
Key Takeaways Solana’s price is approaching a pivotal $95 mark, which may indicate potential support or resistance for…

Advanced AI Predicts Future Prices for XRP, Solana, and Cardano by 2026
Key Takeaways: Claude AI predicts significant price increases for XRP, Solana, and Cardano by the end of 2026.…

Bitcoin Price Prediction: Fed Rate Cut Hints Propel Bitcoin Beyond $72K — Is a Mega Rally Starting?
Key Takeaways Bitcoin surged past the $72,000 mark, ignited by potential Federal Reserve interest rate cuts. The rally…

XRP Price Prediction: Ripple Just Turned to AI to Protect the XRP Ledger — Is This a Security Game-Changer?
Key Takeaways: Ripple is leveraging AI to enhance the security of the XRP Ledger after identifying vulnerabilities. AI…

Institutional Accumulation: US Bitcoin ETFs and MicroStrategy Drive $1.2B in Demand Surge
Key Takeaways: Institutional investments in Bitcoin have surged with US Bitcoin ETFs and MicroStrategy leading the charge, absorbing…

South Korea Tax Service Leaks Seed Phrases, Loses $4.8 Million in Seized Crypto
Key Takeaways The National Tax Service of South Korea inadvertently leaked private keys in a press release, resulting…

Current Crypto Predictions: XRP, Bitcoin, and Ethereum on the Rise
Key Takeaways Despite geopolitical tensions, Bitcoin hits a remarkable $71,500, reflecting market adaptability. Passage of the U.S. CLARITY…

Why is Crypto Rising? Bitcoin Reclaims $71,000 as Market Moves Past Middle East Tensions
Key Takeaways Bitcoin recovers to $71,000 despite Middle East geopolitical tensions, signaling market resilience. Institutional investors played a…

CLARITY Act News: Trump Administration Confronts Banks Over Crypto Access
Key Takeaways President Donald Trump warns banks to stop restricting crypto or face repercussions. The CLARITY Act, which…

Bitcoin Price Prediction: Veteran Trader Warns Final Flush Is Approaching — Is Another Drop Imminent?
Key Takeaways The current market analysis suggests that Bitcoin may experience another significant drop, termed the “final flush,”…

Solana Price Prediction: SOL Just Reached a Critical Level — Is $100 in Sight?
Key Takeaways Solana has bounced back to a crucial price range, reigniting discussions about its potential to reach…
Ethereum 2029 Strawmap Guide: Ultra-Fast Consensus, Native Privacy, and the "Acceleration Variables" Brought by AI
Altcoin ETF Surge: SOL and XRP Inflows Total $23 Million as Institutions Diversify
Key Takeaways Institutional interest in altcoin ETFs is expanding, with SOL and XRP showing significant inflows on March…
Vitalik Drops Ethereum Endgame Bombshell: ETH USD to $3,000?
Key Takeaways Vitalik Buterin introduces the “Sanctuary Tech” manifesto to address Ethereum’s non-financial limitations. A current lack of…
Exclusive: Yuliya Barabash Predicts the Most Regulated Could Be the Biggest Crypto Winners
Key Takeaways The aftermath of FTX and Celsius collapses has ushered a new regulatory era, reshaping the crypto…
iPhone Crypto Wallets Under Threat from State-Grade Malware
Key Takeaways: The Coruna exploit kit exploits 23 iOS vulnerabilities, threatening iPhone users’ crypto wallets. Initially state-level surveillance,…
Bitcoin Nears Two-Year ‘Make-or-Break’ Resistance: Future Implications
Key Takeaways Bitcoin’s price is approaching key resistance levels around $73,000, observed for the first time since early…