Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Frank, founder of the y00ts NFT project under DeGods, said trading pairs linking memecoins with tokenized real-world assets can help reduce the competition among memecoins to capture the same pool of investors.
In a post on X, Frank said tying a memecoin to a specific asset can artificially increase scarcity. If the underlying asset is limited, the cost of creating new memecoins also rises, and latecomers would have a harder time displacing memecoins that secured a given pair first, Frank said. By contrast, when all memecoins trade against the same asset, competition to draw investor attention becomes more intense, according to Frank.
He added that the main driver behind high memecoin valuations at present is not token pairs themselves, but the rapid growth of mobile apps and social trading, a method in which investors share trading information and strategies and use them as references. As long as apps keep growing, the on-chain market will expand alongside them, although social trading will also eventually go through difficult growing pains, Frank said.