Summary
TLDR: Meme coins like Dogecoin, Shiba Inu, and Pepe are pumping due to a “wealth effect” where investors make money in Bitcoin and then look for more speculative assets. Altcoins are performing well compared to Bitcoin, with smaller coins like PEPE seeing significant gains. This trend is not expected to end the crypto bull run, as new sources of demand like ETFs keep the “wealth effect” going.
Key Points
1. Meme coins like Dogecoin, Shiba Inu, and Pepe are surging due to a “wealth effect” where crypto investors make money in Bitcoin and then seek out more speculative assets to invest in.
2. Altcoins like Ethereum and dog-themed coins such as DOGE, SHIB, and FLOKI are outperforming Bitcoin during this bull run, driven by the cumulative size of the wealth effect rather than just the percentage return of Bitcoin.
3. The rise of altcoins is fueled by Bitcoin’s market cap growth, which has provided investors with extra funds to gamble on smaller coins like PEPE, leading to an “everything season” in the market that is likely to continue.