Meme coins probably aren't dead. But that "bull" is certainly resting at the moment.

@MustStopMurad's top meme coin, $SPX  (SPX 6900), arguably the most culty of coins, is down almost 23% over the past month.

The Gensler Gone narrative, by contrast, has morphed into an all-out DeFi renaissance.  $CRV  is up 273% over the same period. $POL (the coin formerly known as $matic) is up 141%. 

What does this mean for "the next big trade"?

First, let's review what it DOES NOT mean. 

We DO NOT have so much retail interest. As a result, it's not possible for meme coins to remain flat while other narratives pump. 

We are still in a "red ocean" environment where success in one area comes at a cost for another area.   This will change when retail enters the space -- maybe when $BTC breaks $100k?

Next, the most obvious "infrastructure" play for the DeFi renaissance narrative is $ETH.

Everyone hated $ETH because it underperformed $BTC  and $SOL.   But that's because DeFi IS the killer app on the $ETH ecosystem and DeFi was all but illegal under Gensler.

Now that he's gone, all the d'apps can flourish.  If you don't want to research anything else in the space, then you can probably stop here.

Third, if you do want to go digging for gold ... there is a LOT of it to be found.   Typically, smaller versions of what worked on other chains will have a chance at success, but remember that you're gambling at this stage. 

These coins have come back but still remain incredibly small.   For example, $YAK is like yEARN, but on $AVAX. It's up 89% and still has a $6.4m market cap. Yes, I own a speculative amount.

Finally, there are potential "turnaround" projects. 

In the refuse of DeFi projects there are some that have just barely survived. This is not for the faint of heart. For example, $VALAS finance is like $AAVE but on $BNB.

I can't tell if it's alive.

Apparently, it's up 10% over the last month, but it has a $200k market cap and a $19.75 trading volume in the last 24 hours. 

I suppose if you wanted to own a DeFi protocol, now is your chance. You'd also be a degenerate gambler too.

So, that's a quick round-up of the "next phase" in the DeFi narrative.

We might well see a dip before any of these things rise. Today, Trump nominated Paul Atkins as the replacement for Gensler as SEC chair (source). That might affect the narrative too.

Some disclaimers: I, or my firms, own de minimus amounts of everything mentioned except for the majors like $ETH, $SOL, and $BTC ... which we own quite a bit of.

It's all gambling. I advise you to stay away from everything in the digital asset space. The above is educational and not financial advice. DYOR.

Happy Trading!

-Sebastian Purcell, PhD