Data from on-chain 7 May 2025 shows that “smart money”—capital often linked to experienced investors or institutions—is beginning to loosen its hold on the memecoin market.
Even with a burst of activity, the trend heavily tilted toward capital outflows, suggesting a change in sentiment or a reallocation of funds. Some projects clearly drew in new injections of capital, but the market as a whole seemed to be taking a deep breath. That’s what the informed players took from it.
Inflow and Outflow Trends Signal Waning Confidence
On May 7, the inflow of funds into memecoins totaled $3.77 million, but this was offset by a substantial outflow of $6.68 million. The net volume, therefore, was negative $2.90 million — clearly indicating that the outflow was not only large but also much larger than any recent inflow. Total trading volume was $10.45 million — a number that, while obviously large, also gives one food for thought.
The negative net flow causes a stir in the crypto community, especially since it appears to be led by bigger, presumably more seasoned players, who are moving their assets into other investment vehicles. This seems, at least, to be a suggestion that the crypto space is not quite as secure an investment as some had believed. Whether that’s because these much bigger fish are simply taking profits after a nice run for many cryptos or because they’re moving into a post-Bitcoin world where these assets are not safe havens is another question.
Winners and Losers Among the Memecoins
Taking a closer look at particular memecoins gives us a better idea of the paths that smart money is trying to follow — and the paths it’s trying to avoid.
Among the tokens that garnered significant inflows, $POPCAT stood out as the top contender, pulling in around $1.26 million. Such robust interest implies that there are still folks out there who see this thing going up and aren’t too scared to put real money into it—perhaps because $POPCAT is racking up some serious community engagement or because there have been some interesting new developments. We’ve saved the best for last, though, with another serious inflow champion in $BONK. $BONK not only kept its place as a fan favorite in the Solana ecosystem but also pulled in around $216,000. That, of course, is in addition to the $BONK that some of us who do write-ups for a living have lying around.
Other recipients of inflows included #TITCOIN ($137K), $SWARMS ($72K), and $ARC ($60K). These amounts are really small in comparison, but they show that there are some areas of the market where investors are expecting movement and possibly new catalysts.
Yet, the most significant narratives emerged from those coins experiencing a negative cash flow. With an impressive $1.44 million in outflows, #ZEREBRO led the charge as cash flowed out of coins and back into wallets, signaling either an epic meltdown in confidence for #ZEREBRO or a truly mammoth liquidation event. #FARTCOIN was also experiencing some major cash flow issues, with $1.26 million in outflows, which smart money influencers certainly can’t be happy about.
Other projects like $HOUSE (-$748,000), $KMNO (-$631,000), and $URMOM (-$158,000) also confronted decreasing investment amounts. The outflows might indicate something about the performance of these particular projects; the manifestation of this might be due to a combination of both their fundamental poor performances and the performance of the supposedly better projects in a time when investors are somewhat fatigued in this market of supposed revolutionary ideas.
Recap: Smart money on chain activities in the memecoin market for 07/05/25
Yesterday, there was more outflow than inflow
Inflow: $3.77M
Outflow: -$6.68M
Volume: $10.45M
Net Volume: -$2.90MThere was inflow into: #TITCOIN ($137K) $SWARMS ($72K) $POPCAT ($1.26M) $BONK ($216K)… pic.twitter.com/QDWolfUVUy
— Stalkchain (@StalkHQ) May 8, 2025
A Shifting Tide in a Hypervolatile Market
The memecoin sector has always prospered on fads, the draw of virality, and short-lived waves of excitement. Yet, where the movement of intelligent capital seems to be taking us could be an inflection point. Net volume has been on the steady decline, and it is now joined by a pouring out of capital from several previously preferred tokens. For some time, investors who are okay with taking risks seemed to be all in on this crazy asset class.
This means for retail investors something not fully understood yet. Though the smart money leaving could point to a coming cooldown, it also opens up the chance for high-risk, high-reward players to buy in during a dip. Of course, the opposite could be true as well. What it ultimately means depends on what happens going forward with both smart and retail money.
The launch of new meme tokens almost every day makes May 7 smart money moves particularly telling when it comes to discerning not just which recent projects command space in the rapidly moving memecoin landscape, but which projects might have more lasting power — and which are at risk of nosediving in the next market downturn. Are we seeing a single day event or a trend initiation? Hard to tell; the memecoin world moves too fast for that. But one lesson is clear: It is a far less safe bet to pile into recent-meme-projects in hopes of drawing a few profits out of them.
In the days ahead, what will be the market’s reaction? Whether they are traders or observers, all will be watching closely to ascertain the next destination of the smart money.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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