Dogecoin, Shiba Inu, Floki Are 'Dino Coins,' Says Trader: He Likes These 3 Other Meme Coins As 'Blue Chips'
Pseudonymous trader ‘Trading Vapor’ suggests that meme coins are poised to benefit the most from the upcoming alt season. Trading Vapor shares his observation that market sentiment towards both altcoins and meme coins is currently negative, but he believes this is misplaced. To support his case for an upcoming alt season, he examines three pivotal questions.
Is Bitcoin's Cycle Top In?
The trader dismisses the notion that Bitcoin's top is already in. He points out, "There is no reason to think that this time is different," referring to the historical pattern of Bitcoin breaking past all-time highs driven by structural factors like the Bitcoin halving event. Bullish catalysts such as upcoming Federal Reserve rate cuts, pro-crypto political stances in the U.S., ETF flows, and Bitcoin's current range near its previous highs all support the thesis that Bitcoin's cycle top is not yet in. Vapor also mentioned the "mass retail" factor, stating, "The argument that ‘retail won't come back' was already a thing in 2020," indicating that retail fervor returned when Bitcoin went parabolic in 2021.
Bitcoin's Rally Triggering Altcoins?
Some argue that institutional ETF flows into Bitcoin and Ethereum might remain siloed, limiting the trickle-down effect to altcoins. However, Trading Vapor counters this by pointing out that every crypto bull run historically starts with Bitcoin's dominance rising followed by altcoin surges. He notes, "Any raise in Ethereum’s price will passively pump altcoin prices due to their pricing against wETH." This positive impact is likely to extend through decentralized financial markets and benefit altcoins, particularly as retail investors return to the market when Bitcoin nears $100,000.
Meme Coins As Standout Winners
According to Trading Vapor, meme coins, despite being high-risk, offer the maximum financial opportunities. He categorizes meme coins into "blue-chip" meme coins such as Pepe, Dogwifhat, and Bonk, which have stable communities and market momentum. These coins, without dilution and with centralized exchange (CEX) listings, are attractive to both mass retail and crypto-native investors. Though he includes Dogecoin, Shiba Inu, and Floki Inu in the list, he describes them as dino coins, implying they are "fully diluted but with no attention or momentum on them," making them less interesting. Highlighting DOGE and SHIB’s performance in the last cycle bull run, Vapor said, "The advantage of blue-chip meme coins is multiple, which makes them arguably the more comfortable candidates to hold for a future alt-season."
Why It Matters
Trading Vapor's analysis suggests an alt-season is likely if Bitcoin continues its upward trajectory. Meme coins, especially well-established ones, could see significant gains as investors look for high returns. He added that despite the emergence of new categories of altcoins, "the arbiter of truth will remain mass retail and what they decide to buy during the last innings of the bull run." He emphasizes that there are stronger reasons to assume they will favor CEX-listed meme coins just like in 2021.
By understanding and keeping an eye on these trends, even those new to crypto investing can potentially capitalize on the upcoming market movements.
