# Meme Coins Emerge from Speculative Assets to Key Trading Items on Crypto Exchanges

Meme coins are transitioning from speculative assets to core trading items on cryptocurrency exchanges, driving changes in market liquidity flows. As decentralized exchange (DEX) platforms expand their influence, liquidity and trading are shifting from centralized exchanges (CEX) to DEX. The growth of DEXs like Pump.fun has reduced the early-stage price influence of CEXs.

MEXC’s trading volume is rising due to its rapid response to the meme coin market, whereas larger exchanges like Binance, which have relatively stringent listing procedures, are seeing a decrease in market influence and require new strategies to adapt.

# Meme Coins: The New Battleground for Crypto Exchanges

Recently, meme coins have emerged as a new battleground in the cryptocurrency market. Initially dismissed as a speculative trend, they are now becoming significant assets that drive trading volumes on major exchanges, asserting their presence.

Last year, several crypto exchanges strategically listed numerous meme coins to capitalize on this trend. For example, Gate.io and MEXC quickly listed meme coins to gain market share, while Binance utilized ‘Binance Alpha’ to rapidly list early-stage meme coins and create soft landing opportunities, showcasing a differentiated approach. In the DEX market, Solana-based Raydium surpassed Ethereum-based Uniswap in market share, proving that meme coins are the new driving force in the sector.

Given the current scenario where meme coins are dictating exchange competitiveness, it is crucial to analyze their impact thoroughly. It is important to determine whether this phenomenon represents a fundamental market shift or a temporary fad. Additionally, regulatory trends and their effects on the sustainability of meme coins as a major asset class must be monitored. These factors will influence the future direction of retail trading and exchange growth over the coming years.

# DEX Market Shift: Raydium Overtakes Uniswap

The rapid growth of Raydium highlights meme coins as a key driver of DEX expansion. As of January 2025, Raydium commanded a 27 percent market share in the DEX space, reflecting its strong appeal to retail investors. Leveraging Solana’s strengths, such as low fees and fast transaction speeds, Raydium provides an optimized environment for meme coin trading, making it more efficient compared to Ethereum.

Conversely, Uniswap, which once dominated the DEX space, is losing ground. Its market share fell from 34.5 percent in December 2024 to 22 percent in January 2025, underscoring the challenges faced by Ethereum-based exchanges. High gas fees on Ethereum have become a barrier for meme coin traders sensitive to transaction costs, leading to a migration of liquidity to new chains. This situation calls for innovation among Ethereum-based DEXs.

While meme coin trading has driven Raydium’s growth, the sustainability of this trend is uncertain. Some argue that the surge in meme coin trading is a temporary phenomenon that could slow down with decreased speculative demand. However, Raydium’s established user base for meme coin trading positions it well to seize this opportunity by strengthening liquidity pools, enhancing user experience, and building an efficient trading system. This could establish Raydium as a trusted trading platform, providing long-term advantages over other DEXs and CEXs.

# Can CEXs Retain Their Dominance Over DEXs?

Gate.io and MEXC have actively targeted retail investors interested in speculative assets by leveraging meme coin-centric listing strategies. MEXC notably led the meme coin trend with rapid listing practices, such as listing Official Trump Coin ($TRUMP) on the day of its release, setting trading volume records and expanding its user base. This strategy translated into tangible results, with the share of meme coins in MEXC’s daily trading volume rising from 5.9 percent in Q1 2024 to 25.9 percent in January 2025. During the same period, the proportion of meme coin traders increased from 18.7 percent to 37.1 percent.

Globally leading exchange Binance is also increasing meme coin listings to secure retail liquidity, incorporating a strategy that focuses more on speculative assets, which can be seen as targeting the ‘attention economy.’ However, the inherent characteristics of CEXs, such as listing reviews and internal procedures, result in inevitable delays. Often, by the time Binance lists a meme coin, the market cycle has already declined or shifted to a new trend.

Moreover, exchanges providing sufficient liquidity to protect investors paradoxically become liquidity channels enabling large-scale sales by initial holders without severe price impacts. In reality, most meme coins newly listed on Binance have seen price drops exceeding 75 percent shortly after listing, causing significant losses for many investors. This phenomenon negatively impacts the long-term credibility of exchanges and raises questions about the reliability of their listing review processes.

Major CEXs like Coinbase and Kraken are adhering to a cautious strategy, focusing on proven cryptocurrencies instead of meme coins. While this approach risks missing out on short-term market opportunities, it ensures stability against excessive volatility and effectively manages regulatory risks. However, the clear trend of funds migrating from CEXs to DEXs indicates that CEXs’ absolute dominance is weakening.

It is time for CEXs to reconsider their existing strategies. Approaches such as selectively listing meme coins with transparent information, similar to Binance Alpha, or creating a hybrid trading model incorporating on-chain order books and decentralized finance (DeFi) elements could be explored. Ultimately, exchanges need to balance short-term trading activity with long-term platform stability while enhancing their competitive edge.

# Implications and Future Outlook

Meme coins have moved beyond being mere speculative tools to becoming primary trading assets in the cryptocurrency market. The surge in meme coin trading, particularly on DEXs, presents new opportunities and challenges for the crypto industry.

During the recent bull market, meme coins on DEXs outperformed those listed on CEXs, boosting investor interest in DEXs. Platforms like Pump.fun have streamlined the issuance and trading processes of meme coins, allowing new tokens to achieve explosive growth even without CEX listings.

In response to these changes, market makers, liquidity providers, and project teams are adapting their strategies. They are now considering the DEX environment alongside CEX listings, building liquidity pools across multiple platforms to enhance trading accessibility.

However, the meme coin market is plagued with unethical practices such as rug pulls, cabals, and malicious trading. With the market’s ethical compass wavering, self-regulation is becoming increasingly challenging. The recent Libra ($LIBRA) token scandal in Argentina has heightened these concerns, leading to skepticism about meme coins and a sharp decline in trading volumes on Solana-based DEXs.

Nevertheless, meme coins have demonstrated new potential uses for cryptocurrencies, serving as proxy assets for specific entities or groups. Examples like Elon Musk and Dogecoin, Trump and Official Trump Coin, and various startups and national meme coins show that cryptocurrencies can become tools for capturing value. This phenomenon parallels trends in traditional securities markets, suggesting meme coins could become a cultural mainstay.

In this evolving landscape, CEXs need to actively respond. Investors no longer rely solely on CEX listings for promising assets. The next challenge for CEXs is to effectively integrate on-chain and DeFi functionalities while maintaining stability and regulatory compliance to sustain retail investor interest. This is likely to be the key driver of the next growth phase.

*This article is a full translation of “Meme Coins Spur Market Shifts in Crypto Trading” by Global Web3 research partner Tiger Research. The report can be viewed on the Tiger Research official website.*