@duncanhornby
Capital chasing meme coins often creates temporary liquidity diversion from Bitcoin and Ethereum, leading to relative underperformance of mainstream assets. Retail-driven hype concentrates attention on high-volatility plays, reducing immediate inflows into blue chips. However, during broader bull phases, liquidity tends to rotate back toward established tokens, stabilizing dominance. Monitoring trading volume shifts and meme coin social momentum helps identify when mainstream coins face temporary stagnation. Such cycles typically resolve as speculative excess cools, reinforcing the structural role of large-cap tokens.
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