š„š„š„ #MemecoinMadness is breaking the #BitcoinHalving cycle
Observers note an unconventional trend in the current bull market, where liquidity appears to be bypassing traditional steps and flowing directly into memecoins, rather than first into Bitcoin and then into other high-capitalization coins like Ethereum.
Described as the "weirdest" bull market on record by industry analysts, this cycle saw Bitcoin reach an all-time high prematurely, followed by a significant surge in memecoin activity. Chainlink's Zach Rynes, known as "ChainLinkGod," remarked on the unusual nature of this market trend to his large following on social media.
Traditionally, bull runs witnessed a flow of liquidity into Bitcoin, then into Ethereum, and subsequently into other coins lower down the chain. However, in the current cycle, observers note a deviation from this pattern, with liquidity flowing directly from Bitcoin to memecoins, which is considered atypical.
The memecoin market saw a substantial increase in total capitalization, reaching $70 billion, primarily fueled by pumps in newly launched tokens like Solana-based Dogwifhat and Book of Meme, as well as older memecoins like Pepe and Bonk.
Additionally, Coinbase's #Layer2 network, Base, emerged as a hub for memecoin speculation, exemplified by the remarkable surge of the Base-native token DEGEN, which soared by an astounding 2,800% over the past month.
Rynes highlighted that market fundamentals seem to be playing a diminished role currently, with attention focused more on specific narratives rather than real fundamentals.
Ethereum educator Anthony Sassano echoed this sentiment, emphasizing that the current bull market is unlike any seen before in crypto history. He noted that retail participation is not significant until the entire market moves up together, rather than isolated sector-specific pumps driven by crypto natives rotating money within the ecosystem.
Source - cointelegraph.com