Phemex has predicted meme coins to perform well in the year ahead, together with opportunities and risks for centralized exchanges.
The future isn’t exactly certain, but it isn’t exactly uncertain either – or at least it doesn’t have to be. Although no one had probably placed bitcoin getting to $100,000 or XRP soaring as one of their bingo cards for 2024, Phemex has indeed been executing its strategy in the course of this year.
Although such scenarios suggest that the organisation might lose its bearings whenever existing market conditions are changing or were forced to take advantage of the opportunities that exist and that are highlighted in this space of late, this leading hybrid futures exchange flourished in the past year because it could successfully identify and plan for such trends. Taken collectively, Phemex is almost as well postured as possible to make better predictions for 2025 as it could be.
Memes and other themes
Indeed, one of the biggest trends in the cryptosphere for the past year has been the return of meme coins, which Phemex believes will remain popular for the next few years at least through 2025. PEPE, associated with a meme, has had its market capitalization exceed $8 billion for instance.
“We are going to see a lot of meme coins that will probably hang around for the next few months,” said Phemex CEO Federico Variola. “That is their primary source of getting to the top; marketing through word and authority, which are both trendy nowadays.”
This is because meme coins start trending very quickly and any exchange that intends to list them must do so within a short time. Timing is crucial. The early listing of PNUT on Phemex was imparted to offer significant value to the users, Phemex traders who traded early to the party had a reported 10x as the market capitalization of the token surged. Some of the benefits incorporating Phemex as one of the most efficient and prescient exchanges in listing popular trending coins.
But even meme coins all need some utility protocol in the background as to guarantee they can be sold in accordance with the crypto road rules. Until recently that coin has been ETH. Now, though, Ethereum faces competition from Solana and SOL token, which has been gradually increasing in popularity among retail traders.
Solana needs to rely on this approach because it has become a home to such trends as meme coins, as Variola stated. “This capability makes it ideal for starting meme coins due to the characteristics that the network offers; high volume and low cost. So, this has become unnoticeable better user experience comparing to the L2s fragmentation which Ethereum chose to solve their scaling woes.
Two such reversal trends, according to Phemex are; The wane of the influence of venture capital in crypto funding as KOLs & content creators play a greater role. Tokens developed from VCs, According to Variola, are sluggish hence the readjustment of the investments.
And possibly, the most significant trend of 2025 might be the increasing pressures that centralized exchanges experience. The first among those challenges is the compulsion of continuous dry need for liquidity. Such issues are general for meme tokens where some of them might have quite questionable fully diluted market capitalization.
There are tokens whose market makers are chosen by the tokens’ team and this often results to self-oriented and manipulative market making, fake liquidity and unjustified price swings. On one hand, exchanges have to head into the world of meme coins while, on the other hand, they act as stewards of people’s money. Hence; care should be taken when selecting an exchange preferring one with rich order books.
While maintaining adequate depth remains a goal, Phemex does not compromise on security in the process. It provide security of users’ funds through a cold wallet their high liquidity facilitates trading. also, It has Phemex Proof of Reserves Mechanism where users can check the security of the assets. The company says it is the first exchange that is used both, proof-of-reserves and proof-of-solvency.
Another issue with CEXes besides liquidity is lower performance of tokens traditionally funded from exchange wallets. As meme tokens become popular, utility tokens that were funded in the traditional way are less attractive which can lead to flipping of focus.
This means that as exchanges, we have to make the right balances that will address the different kinds of investors in the market. By listing multiple utility tokens and meme coins as well as in our spot and contract market, we make sure to cover these,” added Variola. “Now, there are 335 contract trading pairs and 398 spot trading pairs available, and more are being introduced all the time.” Again in regard to flexibility through narratives and trends we’ve also adopted such tools as iceberg orders, multiple watchlists, and basket orders that increase user control and minimize risks. Bitcoin ATM helpline
Looking forward
One of the simplest calls that might be made about the new year from Variola is the continuation of bitcoin hegemony and by “bitcoin” he means BTC.
For instance, while using his bitcoin money analogy BCH and BSV have not experience adoption and level of recognition as that of BTC he said. “Although they have their own supporters, comparing performance of them, they do not look like BTC that went over $100,000.”
Phemex also sees a resurgence of DeFi services because they expect more users to return and engage in staking and other activities to receive more tokens since companies reward people who give them tokens. The increase in activity may be unpreventable due to new regulations, especially after the US elections, people came up with better DeFi protocols.
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‘The new administration that favours cryptocurrencies is likely to propel a much more favourable working climate for digital monies,’ said Variola. “This comprises of possible changes to legislation, enhanced mainstream embrace most especially in institutions, and the availability of new tradable assets based on bitcoin. They also could provide a better framework for admission of the digital assets into the international financial market and its stabilization, further development and expansion.”
Specifically, Phemex expects two specific investment themes to guide approaches until 2025. The first is a clear split in the blockchain space. On one hand, institutional chains like Ethereum will probably continue real-world asset integration and centralized solutions. On the other, retail-oriented chains such as Sui and the previously mentioned Solana may survive buoyed by meme passion and interest shown by armchair traders.
Hybrids plug in
Finally, Phemex analyses that such fundamentals will act as the foundation for the exchange to record success rates and subsequently other projects within the crypto exchange industry follow this recipe for success.
Cointelegraph’s Variola also states that exchanges will shift more operations on-chain, which will lead to platforms growing their user bases.
CEXes won’t go away, though. A considerable percentage of traders prefer them due to their high level of activity, simple and intuitive graphic and such opportunities as margin trading and etc. This appeals to both the casual trader as well as the institutional investor as they offer customer support, and are bound by the know-your-client and anti-money laundering rules. However, there is a downward spiral towards DeFi which Phemex recognizes but will not fully embrace.
“We have observed this need initially and managed to seize the opportunity; we defined ourselves as a hybrid exchange back in year 2022,” Variola continued. “As the news aggregators remain to evolve into hybrid platforms, Phemex will continue to add more on chain solutions for our clientele with decentralized autonomy accompanied by centralized performance.”
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Yes, especially now that the year is coming to an end, Phemex is taking it up a notch with a special holiday gift. The Phemex Cryptomas Event is the exchange’s holiday campaign, which has begun; users have a chance to spend the time on the tropical island of Bali, and win the prize of 4 ETH.
