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Dogecoin, Shiba Inu and Floki are ‘Dino Coins’, says trader: He likes these three other Meme coins as ‘Blue Chips’
Pseudonymous merchant’Trading Steam‘The suggested meme coins are poised to benefit the most from the next alternate season.
What happened: Trading Vapor shared its observation this feeling towards altcoins and meme coins is bad, but you think this is misguided. The trader examined three essential questions to build his case for an imminent alternate season:
- AND Bitcoins Is the BTC/USD cycle coming?
- If not, will the new highs trigger an alternate season?
- If this happens, which currencies will benefit most?
Bitcoin at the top?
The trader dismisses the notion that Bitcoin’s top is already up. He points out: “There is no reason to think this time will be any different,” referring to the historical pattern of Bitcoin surpassing all-time highs due to structural implications such as halving.
The alignment of bullish catalysts such as the Federal Reserve’s upcoming rate cuts, pro-crypto policy stances in the US, ETF flows, and Bitcoin reaching previous highs all support the thesis that Bitcoin’s top is not yet here. .
Vapor addressed the “mass retail” factor, stating that retail investors, despite past burns, will likely return once Bitcoin surpasses its all-time high. This is driven by greed and the search for higher returns on smaller-cap altcoins.
“The ‘retail isn’t coming back’ argument already existed in 2020,” he states, noting its incorrectness as retail fervor returned when Bitcoin went parabolic in 2021.
Read too: What the Ethereum ETF Means for Altcoins and Meme Coins
Bitcoin Rally Triggering Altcoins?
Some argue that institutional ETF flows into Bitcoin and Ethereum ETH/USD may remain isolated, limiting the flow of wealth to altcoins. However, Trading Vapor countered this by pointing out that each crypto bull run has historically started with the rise of Bitcoin dominance, followed by altcoin surges.
He notes: “Any increase in the price of Ethereum will passively increase the prices of altcoins due to their pricing relative to wETH.” This wealth effect will ripple across decentralized finance markets and positively impact altcoins, particularly with retail investors returning to the market as Bitcoin approaches $100,000.
Meme Coins as Standout Winners
Trading Vapor describes how meme coins, despite being high risk, offer maximum financial opportunities. He categorizes them into “blue-chip” meme coins such as Pepê PEPE/USD, Dog hat WIF/USD and Bonk BONK/USD, which achieved escape velocity and cult-like communities. These coins, with no dilution and CEX listings, are attractive to both mass retail and crypto natives.
He adds Dogecoin DOGE/USD, Shiba Inu SHIB/USD and Floki Inu FLOKI/USD to the list. But he also sees them as dinosaur coins, which implies “totally diluted but without attention or drive” and therefore they become a little less interesting.
Highlighting DOGE and SHIB’s latest bull run cycle, Vapor added: “The upside of top-tier meme coins is multiple, which makes them arguably the most comfortable candidates for a future alt season.”
Why this matters: Analysis from Trading Vapor suggests that an alt season is likely if Bitcoin continues its upward trajectory. Meme coins, especially well-established ones, could see significant gains in this scenario as investors look for high returns.
The trader added that despite the emergence of new categories of altcoins, “the arbiter of truth will continue to be mass retail and what they decide to buy during the latest bull run entries.” He emphasized that there are stronger reasons to assume that they will choose CEX-listed meme coins just like in 2021.
What is the next: The influence of Bitcoin as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock