In the current market, institutional funds only buy BTC. Institutions on Wall Street have been making net purchases of hundreds of millions of US dollars every day in recent times, driving Bitcoin to new highs and approaching the 100,000 US dollar mark. Retail funds are interesting, as they only speculate on meme coins. Instead of being endlessly cut by institutions on altcoins, it is better to take a gamble on meme coins.
Benefiting from Musk's call, the market value of Dogecoin exceeded US$60 billion, driving the meme sector to another climax. Shib exceeded US$15 billion, Pepe also exceeded US$10 billion, and other second-tier meme coins also easily reached a market value of US$1 billion.
ACT and PNUTS launched on Binance increased by dozens of times in just a few days, and their market value even exceeded 2 billion US dollars.
The market has been extremely polarized since then, and it is ironic that the market value of a bunch of meme coins exceeds that of many copycat industry leading coins. Doge, Shib, and Pepe have reached a market value of tens of billions of dollars, which has driven the potential market value of meme coins in the future. Meme coins that could exceed $100 million before now have a potential of $1 billion, which has brought great wealth effects to retail investors. Therefore, unless a bear market comes, meme coins will most likely run through the entire cycle like 1co in 2017 and DeFi in 2020.
On the other hand, the altcoins incubated by VC institutions are not doing well. According to Bloomberg, venture capital funds in the crypto space surged to $1.7 billion in Q3. The investment amount in the industry in one quarter is not even as much as a meme that was hyped up in a few days.
With the support of institutions, BTC may have been in a long-term bull market, but such a large market value has no appeal to retail investors; what retail investors need is the wealth effect, which copycats cannot provide, so the only option is meme. If institutions cannot break through the current predicament through paradigm innovation and only want to issue coins and then reap the profits, I am afraid that retail investors will only gamble on memes for a long time.
Now the primary market, especially on the SOL chain, memes are very active. If the leading platforms such as Binance and Upbit go online, they will be heading for $1 billion. For retail investors, the wealth effect of gambling is huge. You say the risk is high, but compared to the altcoins that are constantly losing money and have no wealth effect, it is simply an extremely high-quality coin.
It is estimated that SOL, the fat guy, will be sought after for a long time relying on meme coins. Before the bear market comes or paradigm innovation occurs to end the copycat profiteering, the meme trend will be difficult to end. Part of the funds can be diverted to the primary market to look for hot spots.
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