Memes are starting to create crazy wealth, altcoin season might really be coming!

Recently I feel that altcoin season might be coming!

Why do I say that? Here are several reasons:

1. Recently a lot of on-chain memes have exploded. The first one was ansem on Solana, which pumped 400x in one day in early July. Then there was the CZ meme on BSC, which reached a market cap over $100 million in one day. Then on the Robinhood chain, a cashcat meme appeared, reaching a market cap over $120 million in one day.

Then many articles and news stories came out, like stories of smart money buying a few hundred dollars and instantly turning into several million. This plot has appeared many times before – it's the best promotional material for crypto.

Remember, the crypto space currently lacks "attention" – attention is on semiconductors right now. But these overnight wealth stories can attract attention, because crypto used to rely on Doge, Shibi, Pepe, and various meme stories to bring in a large number of players.

Now, one after another, stories of on-chain meme wealth are exploding, and they will definitely attract a large group of people to chase the "dream of getting rich overnight"!

2. Currently, most altcoins have almost hit their lowest points in 2022. For example, Doge is now at $0.07, while its lowest in 2022-2023 was around $0.06. Shibi has already hit an all-time low. You can check other altcoins and memes yourself – they are almost lower than the 2022-2023 lows. Even valuable altcoins like UNI and AAVE are lower than their 2022 lows. Those who could sell have already "cut losses," and those who haven't sold won't sell. So I think there is capital willing to come in and make a move. Compared to the current cooling of semiconductor enthusiasm, it's actually very easy to pump these altcoins with relatively small capital.

3. Some altcoins have already started showing signs of life. For example, UNI has been on an uptrend recently, possibly related to Standard Chartered's continuous pumping. Why would Standard Chartered pump UNI? Probably because they have built a position. Why aren't they pumping other coins? NEAR has also been rising recently, and Lido has been making some moves. These are all veteran altcoins. If these old-school altcoins start showing abnormal movements, there is reason to suspect that some capital has begun to enter.

4. Currently, the altcoin season index is 47, and Bitcoin dominance is 58%. On June 30, Bitcoin dominance was 64.5%. That means Bitcoin's dominance has actually decreased in July, even though we know Bitcoin has been rising during this period.

This indicates one thing: the proportion of capital inflow into altcoins is significantly higher than into Bitcoin, so this also proves that capital is currently flowing into altcoins!

Based on the above points, I think the altcoin season in crypto might be coming. Why is it the altcoins first this time instead of Bitcoin leading the rally? I think Bitcoin is also rising, but there is no huge macro positive catalyst to make Bitcoin skyrocket.

Besides, altcoins require a lower capital scale – easy to pump and easy to dump. And as the first reason said, various stories of memes skyrocketing and making people rich will attract a batch of capital. Look at the Solana meme wave in 2024 – wasn't it also driven by memes?

As for which altcoins will rise, I can't predict that because I'm not a whale. I think you should choose altcoins that have already shown some improvement, or ones that have had a previous pump. Second choices are those that have already hit their 2022-2023 lows (excluding those where project teams are still dumping and with low market caps). Choose ones with higher market caps, which probably won't go to zero again.

One final reminder:

The above is just my observation of the current market, and does not mean altcoin season has 100% started. The real altcoin season ultimately depends on whether capital continues to flow in and whether Bitcoin remains relatively stable. If Meme heat continues to spread, veteran altcoins start rotating, and BTC dominance keeps declining, then the probability of altcoin season arriving will become higher and higher. For now, I believe at least some signals worth paying attention to have appeared.