According to Eric Cryptoman, recent on-chain trading activity shows that pumping a single coin often results in concurrent dumps of other trending tokens, highlighting intense liquidity rotation across the crypto market (Source: Eric Cryptoman, Twitter, May 21, 2025). This real-time liquidity juggling creates high volatility and presents both risk and opportunity for active traders. Monitoring liquidity flows is essential for anticipating short-term price swings and optimizing entry and exit strategies.

According to KookCapitalLLC, the current landscape of Crypto Twitter is dominated by traders who have suffered significant losses in meme coins (62%), a large group still anticipating an NFT market resurgence (35%), a small percentage of actual Bitcoin holders (4%), and a minority engaged in social activities (1%). This sentiment snapshot highlights the risks of speculative meme coin trading and the dwindling confidence in NFTs, underscoring a shift in capital towards Bitcoin. Traders should note the increased caution around meme assets and potential rotation of liquidity back to established cryptocurrencies like Bitcoin, as evidenced by recent community trends (source: @KookCapitalLLC, May 7, 2025).

According to KookCapitalLLC, only Fartcoin is expected to surpass the $1 billion market cap this cycle among meme coins, due to excessive token launches and rapid liquidity rotation in the current crypto environment (source: Twitter/@KookCapitalLLC, April 28, 2025). The proliferation of over 75 launchpads and ongoing expansion is leading to capital being extracted quickly, making it challenging for new meme coins to sustain strong growth and achieve high valuations. Traders should focus on liquidity trends and launchpad activity as key indicators for meme coin performance this cycle.