The cryptocurrency market is experiencing a notable decline in speculative interest as traditional finance (TradFi) products surge to unprecedented levels. Current data indicates that the dominance of memecoins compared to altcoins has reached a near two-year low, a trend last observed in February 2024, according to insights from crypto data platform CryptoQuant. Ki Young Ji, co-founder and CEO of CryptoQuant, remarked on social media that “memecoin markets are dead.”
In stark contrast, the appetite for speculative investments is rising among equity investors. Traditional leveraged exchange-traded funds (ETFs) have reportedly reached an all-time high, boasting assets under management totaling $239 billion during the third quarter of 2025, as indicated by Bloomberg data shared by Barchart. This shift highlights a diminishing enthusiasm for high-risk digital assets, with speculators now gravitating towards regulated TradFi products that promise greater stability compared to the volatile cryptocurrency landscape.
Lacie Zhang, a market analyst at Bitget Wallet, commented on the evolving dynamics, suggesting that risk-taking in the current market environment is increasingly expressed through familiar and regulated financial products rather than through memecoins, which are often plagued by low liquidity and regulatory concerns. Zhang noted that a revival in crypto speculation would likely necessitate a strong catalyst, such as a viral trend, significant exchange listings, or impactful price movements, to rekindle the interest of retail investors.
Investor sentiment in the cryptocurrency market remains subdued following the significant market crash that occurred in October. Following the crash, which wiped out $19 billion in value, the sentiment among crypto investors has not fully recovered. As of the latest assessment on November 23, the sentiment index registered a score of 29, indicating a state of “Fear,” which is a significant drop from the “Greed” level of 62 recorded on October 7.
Additionally, the so-called “smart money” traders, who are identified as the most successful investors on Nansen”s blockchain intelligence platform, are currently betting against leading memecoins. Their positions include a net short on Fartcoin valued at $3.5 million and a net short on Pump.fun for $1.5 million. This suggests a growing preference for more robust tokens like Ether (ETH) and the Hyperliquid (HYPE) token, which are associated with substantial revenue-generating blockchain protocols.
This strategic positioning by experienced traders may also reflect a broader sense of fatigue with the memecoin trends seen in previous market cycles. Alarmingly, new data from Bubblemaps has raised concerns about the legitimacy of certain memecoins, revealing that approximately 30% of the genesis supply of the Pepe (PEPE) token was controlled by a single entity that sold off $2 million worth just a day after its launch, casting doubt on the coin”s fair-launch narrative.
