[Analysis: Meme stock and token narratives rely on trading volume and market enthusiasm; selling pressure follows once volume shrinks] BlockBeats reported on September 10 that renowned DeFi researcher Ignas pointed out that the current Meme stock and token narratives are driven by trading volume and fees, not fundamentals. Once trading volume shrinks, dividends, buybacks, and burns immediately decrease, reducing traders' incentive to hold, and selling pressure typically follows. Coinbase's trading volume in Q4 2021 reached $547 billion, but a year later, this figure dropped to $145 billion, a decline of about 74%. For Meme tokens, if trading volume is halved, a market cap drop of over 95% is possible. Uniswap's trading volume has already started to decline. Legacy DEXs like ZCAT, STONK, PONS, INDEX, SHROOM, CASHCAT, and RAY, which use fees for buybacks, follow the same logic: without trading volume, incentives are interrupted. Last week, Robinhood Chain's fee revenue was approximately 73% of Uniswap UNI's burn revenue, indicating that market enthusiasm still exists. However, all projects are tied to the premise that "people are still willing to speculate." Trading interest will persist until people stop making money or grow tired of losses. Using the current wave of fees to extrapolate annual returns essentially assumes the market will never cool down, which is absurd. [Original link]