In the second quarter of this year, the Meme token market has once again stirred up a storm. From the BSC rising star EGL1 reaching new highs, to the dramatic drop of LABUBU triggering a crisis of trust, and the sudden silence of SHIB whales, the wild fluctuations in the Meme token market are filled with speculative allure while also exposing extremely high uncertainty. Amidst the massive volatility and community sentiment, what is truly unfolding behind the Meme coin craze?

I. EGL1 Ignites BSC Heat: Is the Price of a Shining New Star a Bigger Bubble?

EGL1, as the hottest new Meme token on the BNB chain (BSC) recently, saw its price surge over 1800% since its launch, with a market cap peaking close to $300 million. With its "Dog + Frog" dual-element setting and a set of highly viral marketing copy, it achieved viral spread in communities like Reddit and X platform.

However, as market enthusiasm surged, some voices pointed out that EGL1's contract audit was not made public, and its token holding structure was extremely concentrated, which could bury hidden risks of a price crash. Some early investors began to take profits and exit, leading to a price retracement of over 35% after last week's peak, with short-term funds gradually withdrawing.

Analysts pointed out that EGL1's explosive rise does not mean that the BSC ecosystem has returned to a top-tier status; it is more likely just a result of short-term sentiment. Once liquidity decreases, similar projects are prone to experience "pin-like" crashes.

II. LABUBU's Plummet: A Warning of Market Manipulation and Disillusionment

Once dubbed "the most promising meme coin after PEPE," LABUBU saw its market cap plummet from $210 million to less than $40 million in just one month, a drop of over 80%. On-chain data analysis shows that the funding behind it is highly concentrated, with multiple early addresses suspected to be controlled by the same entity.

At the beginning of June, a major holding address sold over 100 million tokens in a single day, triggering a chain reaction that caused the project's price to plummet for two consecutive trading days. LABUBU's crash serves as a reminder to investors that "whale harvesting" and FOMO sentiment often resonate in the Meme token space.

Industry insiders noted that "decentralization" and "Meme culture" in many projects are merely packaging techniques rather than underlying logic. Once community trust is lost, projects can collapse instantly, replaying the stories of countless "air coins" that have met their demise in the past.

III. SHIB Whales' Silence: Is It Building Momentum or Strategic Abandonment?

The veteran Meme token Shiba Inu (SHIB) has failed to return to its former glory after experiencing a peak in 2021. Despite the development team launching a series of expansion initiatives, including the Shibarium Layer 2 network and NFT ecosystem, the price remains relatively weak.

In the past two weeks, several on-chain analysis accounts tracking whale wallets pointed out that several of the top ten holding addresses for SHIB have been "silent" for over two months, with no significant buying or selling activity. Some analysts believe this is a "building momentum" behavior, while others worry it represents a strategic abandonment by major funds.

This reflects a typical issue in the Meme token ecosystem: while projects strive to build "use cases," most investors still view them as a game of fooling others. This cognitive dissonance determines that Meme coins often struggle to escape their identity as "speculative assets."

IV. The Meme Coin Market is Becoming "Fast-Food": Shorter Lifecycles

From the long-term survival of DOGE and SHIB to the meteoric rise and fall of PEPE, WOJAK, and LABUBU, it is evident that the lifecycle of Meme tokens has significantly shortened in recent years.

Crypto KOL @DefiSnack recently summarized on X: "Today's Meme coins are not for holding; they are for trading."

V. The "Divided Narrative" of Regulation and Community: Meme or True Belief?

In the face of the extreme volatility of Meme tokens and the funding characteristics of numerous projects, regulatory agencies in several countries have begun to express concern.

For example, the U.S. SEC recently used the term "Meme Token Fraud" for the first time in a case against a certain token project, indicating that regulators are starting to view such assets as potential investment traps.

Meanwhile, the Meme community still firmly believes in the core spirit of "community first, anti-establishment." Some projects are beginning to experiment with DAO governance, on-chain identity binding, and gamification, attempting to transition Meme coins from mere speculative tools to a "third space" between culture and finance.

But as one investor put it: "If you are using Meme coins to talk about Web3 beliefs, you better not look at the K-line."

Conclusion: Opportunities are Ever-Present, Bubbles are Ever-New, and Rationality is Always Scarce

The Meme token market is heating up again, but whether it is EGL1's shining moment or LABUBU's collapse lesson, both remind us: sentiment is the best fuel and also the deadliest risk.

On the eve of a bull market, these bizarre tokens will continue to attract a large number of speculators. However, for investors who truly understand the crypto market, grasping sentiment and recognizing risks may be more important than chasing trends.

Related: Kaia promises to launch a Korean won-pegged stablecoin, leading to a surge in Korean payment stocks.

Original: “The Resurgence of Meme Coins: From Soaring Myths to Plummeting Warnings, the Cycle of Meme Tokens”

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