Some experts weighed in on the market’s performance over the last year, discussing what made meme-based tokens the cycle’s top-leading narrative, and what could be next for the industry.

The Value Of Solana ‘Interjective Culture Coins�/h2>

Qiao Wang, co-founder of Alliance DAO, shared his thoughts on the market dynamics that led to each cycle’s top narrative. In the X post, he noted how there’s “an opportunity for retail to outperform professionals�every cycle.

The alpha is for retail to get involved at a time when there’s too much career risk for professionals to get involved.

Retail investors outperformed professionals during the first cycle with “simplyâ€?Bitcoin, Wang explained. In the second cycle, investors took advantage of Ethereum’s narrative, while Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) became the leading retail opportunities during the third one.

Solana and the “intersubjective culture coins,�as Wang called memecoins, have dominated the ongoing cycle. The meme-based tokens�popularity has often been criticized for a lack of utility and “substance,�frequently resulting in a “quick buck�for their creators and a few early buyers.

Nonetheless, Wang seemingly suggests that these tokens�value relies on the shared culture behind them, an argument that experts and industry figures have discussed before.

As reported by NewsBTC, crypto traders Ansem and Kel debated the value of memecoins in the Unchained podcast. In the interview, the traders explained there’s value in memes and culture on the internet, which makes a comparison with other altcoins “pointless.�/p>

They added that the crypto community is “very internet-centered�as its members understand the financial aspect and are very knowledgeable about online culture. As such, crypto investors realized there’s an opportunity to “financialize�meme virality in the industry.

Additionally, they pointed out that the “shared experience of relating�is another crucial factor driving the craze of meme-based tokens, as seen with the communities of Solana-based memecoins like dogwifhat (WIF) and Popcat (POPCAT).

Memecoins ‘Absorbed’ The Market’s Energy

On Sunday, Chris Burniske, the co-founder of Placeholder, also took X to weigh in on the memecoins frenzy. To him, “Memecoins�tendency to trigger is all you need to observe to know they’ll be bigger than we expect in the expansion ahead.�/p>

In the post, Burniske revealed that he considers the “trend is clear�as the cultural relevance NFT collections had in 2021 will be surpassed by some of the memecoin sensations of this cycle.

It is worth noting that, on October 7, the total market capitalization of Solana memecoins surpassed $10 billion, as SolanaFloor reported.

Solana co-founder Anatoly Yakovenko replied to Burniske, sharing his theory for why memecoins became the leading narrative. Yakovenko considers that the previous cycles “were also 90% memes and 10% products.�/p>

However, he suggests that today, the sector has monopolized the energy that propelled different narratives during other cycles: “My theory is that memecoins today have completely absorbed the meme energy that drove other cycles, like DeFi summer,�Solana’s co-founder noted.

Based on it, Yakovenko believes that products must “make it purely on value�now, which could be a positive thing for the broader industry.

As of this writing, Solana (SOL) is trading at $151, a 4% surge in the last 24 hours.

Among the standout performers is Popcat (POPCAT), which has experienced a remarkable 36% spike in just 24 hours, bringing the token close to its all-time high achieved in July of this year, underscoring the renewed enthusiasm for memecoins amidst changing economic conditions.

Popcat Records Nearly 100% Gain In A Month

On Wednesday, NewsBTC reported that the Federal Reserve announced its first rate cut in four years, reducing the federal funds rate by 0.50 percentage points. This adjustment marks a significant shift since the onset of the COVID-19 pandemic, lowering the target range to 4.75%�%, down from 5.25%�.5%. 

These rates were the highest seen since 2001, and the decision is seen as a bullish signal for the broader market, suggesting potential price increases shortly, even as volatility is expected.

In response to this news, Solana saw nearly a 10% surge in the last 24 hours, edging closer to the $150 mark after successfully reclaiming key support levels. This momentum has fostered renewed confidence in tokens built on the Solana network, exemplified by Popcat’s performance.

Currently trading at $0.918, Popcat is now just 7% shy of its all-time high of $0.993 reached two months ago. The latest increase coincides with a staggering 236% rise in trading volume, nearing the $200 million mark within just 48 hours, according to CoinGecko data. 

Looking at longer time frames, Popcat has demonstrated significant growth, recording a 44% increase over the past week and a 62% rise over the last two weeks. 

This translates to nearly a 100% gain in the past month, particularly striking compared to larger cryptocurrencies that have faced losses following significant market downturns on August 5 and September 6.

Key Levels To Watch For The Solana-Based POPCAT

Despite the uptrend recorded, POPCAT encountered challenges in maintaining its momentum earlier today. The token reached a daily high of $0.936 but struggled to consolidate above a critical resistance level at $0.939 on its POPCAT/USDT daily chart. 

This resistance has emerged as one of the last significant hurdles for Popcat before it can approach its all-time highs recorded in July. Should the token break through this barrier, the next resistance level is $0.971. 

Not surpassing both levels could lead to a brief phase of consolidation, which may be necessary for the token to gain the strength required to push further upward. However, if the current uptrend loses momentum, the inability to break these resistance levels could hinder Popcat’s progress.

On the downside, bullish investors should closely monitor the $0.834 level, as it serves as the nearest support floor for the memecoin. It could indicate a potential correction if the price falls below this support. 

In such a scenario, the next support level on the daily chart is significantly lower at $0.72. If the price reaches this level, it would represent a considerable decline of approximately 21% from its current trading price of $0.918.

Featured image from DALL-E, chart from TradingView.com