Traders Mix Memecoins with Stocks to Create New Trading Landscape

The financial world has witnessed a unique phenomenon - traders combining traditional stocks with memecoins in their trading strategies.

This trend, known as MemeFi, allows traders to exchange memecoins for tokenized stocks instead of stablecoins or cryptocurrencies.

For instance, Artificial Inu (AI) can be traded against NVIDIA RWA tokens (NVDA), with the stock becoming the settlement asset.

This setup introduces a new dynamic where the memecoin's price is influenced by both its exchange rate relative to the second asset in the pool and the price of the tokenized stock itself.

The result is that a rise in NVIDIA can automatically push AI higher, even if the AI/NVDA rate remains unchanged.

This phenomenon has also led to increased liquidity and affected the price of the tokenized instrument, as large pools can absorb significant portions of the available supply.

In early September, for example, the main AI/NVDA pool accounted for over 16% of the total supply of NVDA tokens, with combined memecoin/stoock pairs absorbing around a quarter of these RWA instruments.