Alt-Seasons Change

Memes are fun. They can be a profitable opportunity. But they can also be very risky investments. There can always be another meme emerging tomorrow, will you FOMO into that one too? Are you looking for more solid alternatives?

The crypto space evolves at the speed of light, and the capital flows from one coin to another overnight. The crypto landscape becomes more complex by the day, with new emerging projects replacing others with less traction. Once you grasp how money flows across the market, you will anticipate and catch better the major cycles.

It’s all a matter of perspectives. In a bull market, buying a coin that has a price increase by 2x is not as much a good investment as another that increases 10x. Then, of course, you need to account for greater downside risk, but you can twist the outcome in your favour with the proper risk management system.

If you missed the Meme season and the recent Metaverse season, what’s the next big trade? This week’s chart shows the performance of a selected basket of coins (SOL, MATIC, AVAX, BNB and FTM) versus Ethereum.

Layer 1 and layer 2 season

Layer-1 and Layer-2 coins have experienced a huge adoption at the beginning of 2021. Once the market started to cool off in the second half of the year, investors and traders took profit leading to a severe correction. After a long period of consolidation after the drop, these L2 and L1 coins are raring to go.

As a group, they are now significantly overperforming Ethereum again. It’s a broader risk-on signal that could lead to a strong Altseason, should Bitcoin keeps trading sideways for a while.

The best of all? Ethereum doesn’t look bad after all. With its dominance about to break out, the potential upside for high-quality coins seems even higher.

Ethereum dominance