DeFi researcher Ignas said the current “coin-equity” meme coin narrative depends heavily on trading volume and fee revenue. If trading activity declines, dividend and buyback funding would fall, weakening holding incentives and potentially triggering sell-offs.
Ignas noted Coinbase trading volume dropped about 74% from $547 billion in Q4 2021 to $145 billion a year later, while meme coin trading volume could fall by 95% in the future. He said projects including ZCAT, STONK, PONS, INDEX, SHROOM and CASHCAT link dividends, buybacks, burns or liquidity incentives to transaction fee revenue, making annualized yield projections based on current fees unreliable.
Analyst Warns Trading Volume Decline Could Undermine Coin-Equity Meme Tokens
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