Bernstein Predicts Crypto Liquidity Shift From Memecoins to DeFi, Gaming, and NFTs
Analysts at research and brokerage firm Bernstein predict that liquidity in the crypto market will shift from memecoins to more utility tokens in the DeFi, gaming, and NFT sectors. The forecast comes amid a trend of loosening regulatory conditions in major markets.
The Shift from Memecoins to Utility Tokens
Memecoins have been on the rise in recent years, largely due to the regulatory crackdown on utility tokens and NFTs. Under former SEC Chairman Gary Gensler, the market was forced to look to memecoins as a way to escape strict oversight. However, the current regulatory environment could see money flow back to areas with higher application value.
In particular, former crypto-friendly regulator Paul Atkins, who was appointed by President Trump to be the new head of the SEC, is awaiting confirmation by the US Senate. In addition, the formation of a new crypto task force under Commissioner Hester Peirce, a crypto-positive person, has further strengthened the prospect of loosening regulations on utility tokens. Some clear signs of this shift in stance include the SEC reaching an agreement in principle with Coinbase and ending its investigation into the OpenSea NFT marketplace.
Memecoins Cool Down
According to Bernstein, many recent memecoins have been promoted by political figures and celebrities, such as Javier Milei's Libra token. This event has led to political repercussions and accusations of insider trading, causing the wave of memecoin launches on the Solana platform to begin to cool down.
New Trends in the Cryptocurrency Market
With the changing regulatory environment, Bernstein predicts that Bitcoin will be a strategic focus of the Trump administration. Along with strong capital inflows into Bitcoin ETFs and institutions continuing to buy corporate treasuries, analysts expect Bitcoin to reach $200,000 by the end of this year.
In addition, stablecoins and tokenization of real assets are also attracting great attention. New regulations are expected to help stablecoins have a significant impact on the fields of cross-border payments, global interbank transactions, and remittances. As regulations on digital asset securities become clearer, the market will see strong innovation in tokenizing stocks and debt products, opening up new capital raising opportunities for businesses.
In addition, the development of stablecoins will expand the potential market for cryptocurrency exchanges and brokers, boosting trading volumes thanks to new crypto asset listings. Bernstein believes Robinhood will be one of the biggest beneficiaries of this trend over the next two years, thanks to its integration with Bitstamp and expansion of services such as staking, stablecoins and derivatives.
Conclusion
The regulatory shift is gradually paving the way for the development of utility tokens in the DeFi, gaming and NFT sectors, replacing the memecoin wave that has dominated in recent times. With the expectation of continued Bitcoin growth and the boom in stablecoins and asset tokenization, the crypto market may enter a new, more sustainable phase of development in the coming months.
