Analysis: The coin-stock meme narrative relies on trading volume and market enthusiasm; once trading volume shrinks, selling pressure follows closely.

BlockBeats news, September 10 — Renowned DeFi researcher Ignas pointed out that the current coin-stock Meme narrative relies on trading volume and fees, not fundamentals. Once trading volume shrinks, dividends, buybacks, and burns immediately decrease, traders' incentive to hold drops, and selling pressure typically follows closely.

Coinbase's trading volume reached $547 billion in Q4 2021, and a year later that figure fell to $145 billion, a drop of about 74%; once a Meme token's trading volume is halved, its market cap could fall by over 95%. Uniswap's trading volume has already begun to decline. ZCAT, STONK, PONS, INDEX, SHROOM, CASHCAT, and RAY — established DEXs that use fees for buybacks — follow the same logic: once there is no trading volume, incentives are cut off.

Robinhood Chain's fee revenue last week was roughly equivalent to 73% of Uniswap UNI's burn revenue, indicating market heat is still there, but all projects are tied to one thing: "everyone is still willing to keep speculating." Trading interest will persist until people can no longer make money, or get tired of losing. Extrapolating full-year returns from the current wave of fees is basically predicting that the market will never cool down — which is absurd.