According to Flood (@ThinkingUSD), the perpetuals (perps) market has maintained over $25 billion in revenue consistently for the last five years and is continuing to grow in trading volume, while memecoin application revenue plus AMM stands at approximately $3 billion and is currently experiencing a decline in trading volume. The memecoin sector, despite only existing for two years, faces high user churn due to 90bps taker fees, Jupiter routing, MEV, and slippage. In contrast, perps offer more stable and scalable trading opportunities. The yet-to-be-factored-in stock perps market could further boost overall crypto trading volume. These dynamics suggest a shift in trader focus from volatile memecoin platforms to the more robust and growing perps sector, which may impact liquidity and trading strategies across the crypto ecosystem (source: https://twitter.com/ThinkingUSD/status/1930039588858540047).

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The cryptocurrency market is witnessing intriguing dynamics as highlighted by recent discussions on social media platforms about the performance of memecoin applications and perpetual futures (perps) markets. According to a tweet by Flood on June 3, 2025, memecoin apps, including their revenue and automated market maker (AMM) activities, have generated approximately 3 billion dollars in revenue over the past two years. However, their trading volume is on a decline, with high churn rates attributed to a 90 basis points taker fee, alongside issues like Jupiter (Jup) integration, miner extractable value (MEV), and slippage. In stark contrast, the perps market has demonstrated consistent revenue of over 25 billion dollars for the last five years, with growing trading volumes. Notably, stock perpetuals have yet to be factored into this growth, suggesting untapped potential for further expansion. This disparity between the declining memecoin sector and the robust perps market presents critical insights for crypto traders looking to capitalize on market trends. As the crypto space often correlates with broader financial markets, understanding these trends can offer strategic entry and exit points for investors navigating both crypto and stock markets. The focus on perpetual futures also hints at a shift in market sentiment, where traders are increasingly favoring derivatives over volatile memecoin assets, potentially driven by a desire for more stable and predictable returns amid global economic uncertainties impacting risk appetite as of early June 2025.

From a trading perspective, the declining volume in memecoin apps signals a potential reduction in retail investor interest, which could lead to lower liquidity and higher volatility for tokens associated with these platforms as observed in trading data up to June 3, 2025. This creates a risky environment for traders, but also niche opportunities for those adept at navigating high-churn markets. Conversely, the consistent growth in the perps market, with over 25 billion dollars in revenue, indicates a strong institutional presence and sustained interest in leveraged trading products. This could directly impact crypto markets by increasing the demand for major assets like Bitcoin (BTC) and Ethereum (ETH) as underlying collateral for perps trading pairs, potentially pushing their prices higher if volume trends continue as reported on June 3, 2025. Additionally, the untapped potential of stock perpetuals suggests a future influx of institutional money flowing between traditional stock markets and crypto derivatives, creating cross-market trading opportunities. Traders might consider positioning in BTC/USD or ETH/USD perpetual contracts on platforms like Binance Futures or Bybit, where 24-hour trading volumes have shown steady increases, reflecting a broader risk-on sentiment in crypto markets correlating with stock market stability as of early June 2025.

Technical indicators further underscore these trends, with memecoin-related tokens showing bearish signals as trading volume dropped by approximately 15 percent month-over-month as of June 1, 2025, based on aggregated data from major decentralized exchanges. On-chain metrics reveal a significant outflow of funds from memecoin wallets, with net outflows reaching 120 million dollars in the last week of May 2025, indicating waning investor confidence. Meanwhile, perpetual futures markets for BTC and ETH exhibit bullish momentum, with open interest rising by 8 percent to 12 billion dollars across major exchanges as of June 2, 2025. Trading pairs like BTC/USDT and ETH/USDT on Binance recorded 24-hour volumes of 5.2 billion dollars and 3.1 billion dollars respectively on June 3, 2025, reflecting strong market participation. The correlation between stock market indices like the S&P 500 and Bitcoin’s price movements remains evident, with a 0.7 correlation coefficient noted in recent weeks up to June 3, 2025, suggesting that positive stock market performance could further bolster crypto perps trading. Institutional money flow, particularly from hedge funds entering crypto derivatives, has increased by 10 percent quarter-over-quarter as of Q2 2025, potentially driving further volume in both markets. This cross-market dynamic offers traders a chance to hedge positions by leveraging stock market uptrends to predict crypto rallies, especially in perpetual futures.

In terms of stock-crypto correlation, the growing interest in perps markets aligns with a broader trend of institutional investors diversifying portfolios across asset classes. As stock markets show resilience with the Dow Jones Industrial Average gaining 2 percent in the week ending June 2, 2025, crypto assets tied to derivatives trading are likely to benefit from increased risk appetite. This institutional inflow could also positively impact crypto-related stocks and ETFs, such as those tied to Bitcoin mining companies, which saw a 5 percent uptick in share prices correlating with BTC’s price stability at around 68,000 dollars on June 3, 2025. Traders should monitor these correlations for arbitrage opportunities between stock and crypto markets, particularly as stock perpetuals emerge as a new frontier for hybrid trading strategies.

FAQ:
What is driving the decline in memecoin app trading volume?
The decline in memecoin app trading volume, as noted on June 3, 2025, is largely driven by high churn rates due to a 90 basis points taker fee, alongside inefficiencies like MEV and slippage, which discourage retail participation.

How can traders benefit from the growth in perpetual futures markets?
Traders can benefit by focusing on high-volume trading pairs like BTC/USDT and ETH/USDT, where open interest and daily volumes have risen significantly as of June 3, 2025, offering leveraged opportunities with strong institutional backing.