Originally posted on CryptoSnackable.com
The crypto markets seem to be in some sort of speculative/narrative driven redux (and not just a few isolated coins - there is a broader based strength across AI, DEX, and memecoins + meme coins respectively).
Jupiter ($JUP) is exceptionally strong from the Solana ecosystem and along with FET, Virtuals and Injective are on the move with considerable short term momentum. It's also less noticed but Uniswap (UNI) price action is starting to rally. I think there is a good chance UNI is benefitting from the recent visibility of the layer 2 developer activity and the resurgent dominance in the DEX marketplace.
Why The Optimism?
Two macro things are in play here.
US-EU Tariff Pause
The sudden trade escalations pause between the US and EU have relieved a lot of uncertainty and negativity in what has weighed speculative markets down for at least a couple of weeks.
US Market Holiday
The US markets being closed for the long weekend allowed crypto to breathe, and rally without correlation drag.
Sectors That Are Leading
AI Tokens:
- Unsurprisingly we have FET, Virtuals, and even Worldcoin are on the move.
- Momentum should still benefit from OpenAI hype and movement with the leadership (i.e., Sam Altman).
- Expect this narrative to remain hot, and probably volatile.
DEX Tokens:
- Examples include Jupiter, Raydium and Uniswap for positive areas of strength.
- Looking at Uniswap a factor behind its positive price action may include layer 2 developer activity, in addition to a resurgence in DEX.
The Graph (GRT)
GRT being a beneficiary of new partnerships and its unique positioning in the AI and data indexing space.
Meme Coins:
We have WIF, Pepe, Bonk, and Floki all on the rise.
Memes are going to perform in risk-on environments, and this one seems to be no exception.
Hyperliquid ($HYPE):
One of the more surprising top performers in this cycle. HYPE had moved off lows during April due to whale activity, and then general improvement in quality of participants, product development, fundamentals, etc.
Are We Ready For Altcoin Season 2.0?
While it is premature to call an "alt season" of any sort it is clear there is speculative momentum at the moment, and this is a real environment, with macro relief, narrative catalysts, and social buzz coinciding all at the same time.
If you’re looking for a short term alpha opportunity, this is the zone to be aware of — AI, DEXs, memes — all lighting up, and the risk-on appetite is alive and well.
