Previously, the rotation pattern of asset sectors in the market was roughly as follows: external incremental funds would first flow into Bitcoin, then gradually into Ethereum, where Ethereum's DeFi ecosystem would further amplify the leverage effect, and finally, funds would flow into some emerging tracks and popular tokens.
However, the situation in this bull market is somewhat different, as the rotation order of asset sectors has changed: first, Bitcoin surged, followed closely by Solana, then Doge, followed by mainstream meme coins, and finally various meme coins across different chains. This rotation pattern makes the market's trend appear more diverse and complex.
Why has there been such a change?
First of all, Bitcoin usually performs very strongly at the beginning of a bull market, especially with the support of this round of ETFs, which has practically driven the entire industry forward.
The external incremental funds for Bitcoin mainly enter through ETFs; however, this means that the funds have not really entered the crypto market but are isolated in the US stock market.
Although Ethereum also has ETFs, currently, funds are mainly flowing into Bitcoin, which makes Ethereum appear relatively weak and lacking in liquidity.
Bitcoin's surge has actually brought about many unexpected consequences.
Bitcoin is essentially like the largest meme coin; it symbolizes the decentralized world, and its symbolic significance far exceeds its actual technical value.
Ethereum, on the other hand, acts as the 'world computer,' its value relies more on the development of its ecosystem and practical applications.
Currently, the market is basically divided into two major camps: one part sees Bitcoin as a speculative asset or a store of value, while the other part values Ethereum and its underlying innovative potential.
The result of BTC's surge has actually brought about the craze for meme coins, with speculation dominating the atmosphere in the market, while Ethereum's weakness has temporarily suppressed some 'value coins' with stronger practical application value.
The characteristics of meme coins are high volatility, strong stimulation, and a very strong sense of participation.
The market's attention is limited. Since there hasn't been much movement from utility-value cryptocurrencies like Ethereum for the time being, everyone has turned to the 'big casino' of meme coins.
Meme coins are simple and highly entertaining, making them very suitable for novice investors to enter the market.
Additionally, Musk's support for Dogecoin has further boosted the popularity of meme coins.
The explosive popularity of meme coins this time is driven by multiple factors: the bull market cycle, the loosening of policies by the new US government, and Musk's influence.
However, assets without value support ultimately cannot go far. Therefore, after the meme coin craze, funds will still return to those assets with narratives and imaginative potential, as these assets have more room for bubble development.
So, don't lose faith in VC coins represented by Ethereum; funds will ultimately flow to those tokens with greater narratives.
