Although there are signs that the “Memecoin Super Cycle” has ended in the cryptocurrency market, smart money investors are still looking for short-term profit opportunities in these high-risk assets. In particular, the launch of memecoins associated with US President Donald Trump has significantly affected the dynamics in this area.
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ToggleWhat is Smart Money?
Smart money is a term used to describe capital managed by experienced, knowledge-based, and usually professional investors or institutional actors in financial markets. These investors generally make more accurate decisions thanks to their ability to predict market movements, use advanced analysis tools, and access to deeper data.
Who Represents Smart Money?
- Hedge funds
- Investment banks
- Institutional investors
- Large-capital individual investors (Whales)
- Addresses with high return rates whose behavior is monitored on blockchain analysis platforms
What Does “Smart Money” Mean in the Crypto World?
In cryptocurrency markets, smart money usually refers to wallets that have made above-average profits through on-chain transaction history, timing, and position management. For example, analytics platforms such as Nansen, Lookonchain, or Arkham label these addresses as “smart money” and offer the ability to instantly track which projects they have invested in.
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Smart Money Movements in Memecoins
“There has been a meme wave lately, and smart money is always happy to oblige. But they are also happy to get out of them quickly,” says Nicolai Sondergaard, research analyst at blockchain analytics platform Nansen. This shows that experienced investors continue to show interest in memecoins. For example, an investor who invested only $2,000 in the popular memecoin Pepe, earning up to $43 million, shows the potential returns of such assets.
The Impact of Trump-Themed Memecoins
On January 18, 2025, the “Official Trump” (TRUMP) memecoin officially supported by President Donald Trump was launched. This launch took place on the Solana (SOL) network and pushed the price of the SOL token to an all-time high of $270. The TRUMP token quickly reached a market value of $6.9 billion with a circulating supply of 200 million and was listed on major exchanges. However, there are questions about the sustainability of this rapid rise.
The Role of the Pump.Fun Platform
A major platform in memecoin launches, Pump.Fun attracted attention by generating $93 million in revenue in November. The platform continued to grow by benefiting from the popularity of Solana-based memecoins. However, the platform received criticism for its live streaming segment that contained explicit content, which affected user confidence and caused a temporary decrease in revenue.
The launch of the TRUMP token caused fluctuations in the memecoin market. For example, while other memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE lost value, the TRUMP token attracted great attention. This shows that investors are turning their attention to memecoins with new and popular themes.