Altcoins
Dogecoin, Shiba Inu and Floki are ‘Dino Coins,’ Merchant Says: He Likes These 3 Other Meme Coins Like ‘Blue Chips’
Pseudonymous trader ‘Steam exchange‘ suggested that meme coins are poised to take full advantage of next high season.
What happened: Trading Vapor shared theirs observation that sentiment towards both altcoins and meme coins is negative, but he thinks it’s misplaced. The trader examined three crucial questions to build his thesis for an upcoming alternative season:
- AND That of Bitcoin BTC/USD cycle at its peak?
- If not, will the new all-time highs trigger an alternative season?
- If this happens, which coins will benefit the most?
Bitcoin on top?
The trader rejects the idea that Bitcoin’s top has already been reached. He points out, “There is no reason to think this time is different,” referring to the historical pattern in which Bitcoin has broken through all-time highs due to structural implications, such as the halving.
The alignment of bullish catalysts such as impending Federal Reserve rate cuts, pro-crypto policy stances in the US, ETF flows, and Bitcoin hitting previous highs all support the thesis that Bitcoin’s top is not yet arrived.
Vapor addressed the “mass retail” factor by saying that retail investors, despite past burns, will likely return when Bitcoin breaks through its all-time high. This is driven by greed and the search for higher returns in small-cap altcoins.
“The argument that ‘retail isn’t coming back’ was already widespread in 2020,” he says, pointing out its inaccuracy when retail fervor returned as Bitcoin went parabolic in 2021.
Read also: What does the Ethereum ETF mean for Altcoins and Meme Coins
Does Bitcoin Rally Trigger Altcoins?
Some argue that institutional ETFs will flow into Bitcoin and Ethereum ETH/USD may remain in silos, limiting the flow of wealth to altcoins. However, Trading Vapor countered by pointing out that every cryptocurrency bull run has historically started with rising Bitcoin dominance, followed by surges in altcoins.
He notes: “Any increase in the price of Ethereum will passively pump up altcoin prices due to their price relative to wETH.” This wealth effect will ripple through decentralized financial markets and have a positive impact on altcoins, particularly with retail investors returning to the market as Bitcoin approaches $100,000.
Meme coins as extraordinary winners
Trading Vapor outlines how meme coins, despite being high risk, offer maximum financial opportunities. Classifies them into “blue-chip” meme coins like Pepper PEPPER/USD, Dogwifhat WIF/USD e Good BONK/USD, which achieved seven-like escape velocity and communities. These coins, undiluted and CEX listed, appeal to both mass retail and cryptocurrency natives.
He adds Dogemoneta DOGE/USD, Shiba Inu SHIB/USD e Floki Inu FLOKI/USD to the list. But he also sees them as dinosaur coins, which implies “completely diluted but without attention or momentum on them” and so they become a little less interesting.
Highlighting DOGE and SHIB’s latest bull run cycle, Vapor added: “The upside of blue-chip meme coins are multiple, making them arguably the most comfortable candidates to hold for a future alternative season.”
Because matter: Trading Vapor analysis suggests that an alt-season is likely if Bitcoin continues its bullish trajectory. Meme coins, especially established ones, could see significant gains in this scenario as investors seek high returns.
The trader added that despite the emergence of new altcoin categories, “the arbiter of truth will remain mass retail and what they decide to buy during the last inning of the bull run.” He pointed out that there are stronger reasons to assume that they will choose CEX-listed meme coins just like in 2021.
What’s next: The influence of Bitcoin as an institutional asset class it is expected to be explored in depth at Benzinga’s next event The future of digital assets event on November 19th.
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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