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It would not be incorrect to say that altcoins have recently become synonymous with meme coins. Indeed, one might argue that these meme coins have steadily drawn public interest away from more well-known altcoins. The altseason this time is more or less the meme-season, ruled by the likes of Dogecoin and Shiba Inu, and the crowd is not happy about it.
According to Su Zhu and Kyle Davies, founders of crypto-hedge fund Three Arrows Capital, while Bitcoin has always been the “store of value,” other layer-one properties, such as meme coins, have the ability to become a store of value in the future. Su Zhu highlighted this in a new podcast, saying,
“I think DOGE arguably is starting to look like it could become a store of value because it’s got absolutely incredible volumes, it’s got absolutely incredible memes as well. It’s also very old and decentralised. So I don’t see any reason why it can’t be.”
Davies shared a similar point of view as Zhu and commented,
“It [DOGE] is becoming a store of value. It’s very cheap and usable. Even though not many people use it, it offers a different niche.”
The crypto-market has been booming in recent weeks and months as a result of coins in the meme-coin niche. However, DOGE and Shiba Inu aren’t the only ones that have risen; other mainstream alts have also risen.
In the middle of the chaotic crypto-environment, Ethereum’s ultrasound money meme reappeared. Its proposed deflationary feature seemed to inject some legitimacy into Ethereum, and the price of Ether did fairly well as a result of this proposal. Davies commented on the subject, saying,
“Once you see it’s as a deflationary asset and not a meme, it’s actually deflationary, and I think that moves the needle for a lot of people.”
The ultrasound money plan, proposed by Justin Drake, has been condemned by supporters of the PoW consensus. They say it has two major flaws: centralisation and unpredictability.
The popularity of meme coins has been detrimental to Bitcoin, but it has helped Ethereum steadily recover. Zhu went on to say that when decrypting the same,
“I also see DOGE helping Ethereum in a way because it just chips at this idea of Bitcoin monetary maximalism… Doge comes with no cap, outperforms and kills the narrative that there’s no alt that can be up in SATS. So that way, just the presence of DOGE has been one of the biggest bearish Bitcoin dominance cases.”
It’s worth noting here that both Zhu and Davies are still short on Dogecoin. It was, though, something they were looking forwards to doing in the future.
Davis went on to say that the stocks are on the right track. When he asserted the same, he concluded,
“This is a sign of maturity. There’s no concept now of an alt season now. I think Doge is contributing to that too. Doge can be up 20 percent when everything’s down. So that kind of decoupling of coins is very healthy.