Smart Money Shows Caution in Memecoin Market as Outflows Dominate

The memecoin sector—an ever-volatile corner of the crypto world—seems to be shifting, as on-chain behavior from the smart money suggests a more cautious outlook.

For months, the market frenzy that defined this area of the crypto space seemed unstoppable, but yesterday’s data points to a noticeable pivot. In contrast to several previous days this week when net inbound capital was seen, yesterday saw a substantial amount of net outbound capital.

The most up-to-date on-chain metrics show that on April 10, the ecosys tem memecoin had a trading volume of $4.73 million. On the other hand, net activity does not seem as bright, given that the day saw outflows totaling $3 million compared to inflows of $1.73 million. This resulted in a net negative volume of -$1.26 million, marking one of the sharpest outflow-dominant days in recent weeks.

Although the general market mood was unfavorable, not every token was affected equally. A handful managed to pull in investments from astute investors, indicating they might have some specific bullish factors or reasons to be positioned there ahead of potential market-moving events.

Ongoing transformation packs have seen the inflow surge fresh money pumping into the memecoin-adjacent ecosystem. But even in this LS-$MSEC-with-a-T-window landscape, some cash is nonetheless flowing into what would seem to be safer, more established crypto assets, such as Bitcoin. The net inflow for Wrapped Bitcoin was $59,000. Alongside it, niche tokens like $PVS and $LAYER are seeing some fresh capital, with net inflows of $34,000 and $28,000 respectively. Vaguely reminiscent of 2023, when the Green Book reporting token presumably became respectable enough to inspire buying, Bittrex appears to be cozying up again to Huobi with the Horizontal Working Group. This has been the latest installment in the Crypto in One Frame storytelling series.

Surprisingly, even some of the more humor-driven tokens weren’t completely left out in the cold. #BUTTCOIN brought in $46,000 in smart money inflow, while the popular Solana-based meme token $BONK added another $34,000. This indicates that although the broader sentiment may be bearish, some investors are still betting on the tokens that make them laugh, and those often have loyal communities and plenty of traction on social media.

Conversely, many tokens saw significant outflows—obvious signs that savvy investors are bailing and probably putting their dough into something else.

#FARTCOIN took the largest hit, losing a staggering $943,000. This could be interpreted as either a short loss of faith in its momentum or perhaps the appearance of a larger strategic unwind from early backers. Following that, $ZEUS saw $257,000 leave its ecosystem, while $FWOG reported $122,000 in outflows.

The dog-themed $WIF, a once beloved darling of retail and whales alike, experienced a notable $101,000 outflow, suggesting that some large holders may be cashing out profits or reacting to perceived stagnation in the token’s utility or community engagement.

$SPX also witnessed a dip, shedding $57,000 in capital.

In aggregate, the inflow and outflow distribution shows that the sophisticated actors in crypto are currently taking less risk. Whether this is merely a temporary phenomenon, coinciding with the cashing in of some profits, or the signaling of something more widespread and lasting, such as a mild to moderate contraction in the memecoin market, remains to be seen.

The memecoin sector has been one of the most talked-about areas of crypto in 2025, often fueled more by culture and virality than fundamentals. However, smart money flows tend to offer a clearer picture of market direction than retail hype alone.

The outflow is happening in such a way that it seems to point toward institutional players, whales, or early investors de-risking ahead of expected volatility or macro uncertainty. Yet, the inflows we are seeing are far from all bad news; they suggest that not every Ken-and-Barbie doll is being pulled out of the market. There are still narrative-driven or community coins worth investing in, even if that’s not the common wisdom during a period of market headwinds.

Traders might read this data as a canary in the coal mine, but at the same time, it’s giving us an opportunity to reassess our priorities. Where is the true value in memecoins? Where is the community strength? At the moment, those are not easy questions to answer, but with the memecoin market being a rapid-sentiment-shift kind of place, tomorrow could tell a very different story.

At this moment, the figures tell a clear story: the prevailing sentiment among the intelligent investors is one of caution.

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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