Ethereum and Solana have taken center stage in the recent rally. ETH is hovering around $3,000, while SOL continues to trade above $160, both fueled by ETF speculation, staking demand, and DeFi resurgence.
Their price resilience and large user bases make them the foundation of this altcoin cycle. Analysts suggest that these two tokens are becoming the "Bitcoin" of altseason—blue-chip assets that anchor the broader crypto rally.
In past bull markets, capital often flowed in distinct phases: first into Bitcoin, then into Ethereum and other large-cap altcoins, before moving to mid-caps, meme coins, and micro-cap tokens.
This waterfall of liquidity allows early movers to secure gains and rotate into riskier assets with higher potential returns. With BTC above $118K and ETH cruising in on $3K, history suggests that we are entering the stage where capital begins rotating into more speculative narratives.
Tokens with compelling backstories and strong communities are gaining steam. FloppyPepe (FPPE) is leading the meme-Fi wave with a mix of AI integration, DeFi tools, and viral marketing. $WLFI (World Liberty Financial) adds a geopolitical narrative, combining decentralized finance with liberty-based messaging. These tokens resonate with the current market psychology: high-reward bets with emotional appeal.
Meme coins are capturing massive inflows as retail investors flood back into the market. BONK, SHIB, and FPPE are seeing parabolic rises in social media engagement and X (Twitter) mentions. With the Fear & Greed Index deep in the "greed" territory and influencers turning their attention back to meme coins, the retail-driven narrative is overpowering pure fundamentals. DOGE is still considered as one of the most traded meme coins. With data backing up, DOGE is expected to surge at least 3x in the next quarter (could be earlier).
FloppyPepe (FPPE) especially stands out for blending humor with real DeFi tools, drawing both degens and long-term holders alike. As meme-Fi continues evolving, tokens like FPPE are carving out a serious role in retail-focused portfolios.
Beyond the meme spotlight, mid-cap tokens and Layer-2s like zkSync, Starknet, Metis, and Arbitrum are experiencing growing momentum. These projects offer scalability, lower gas fees, and active developer communities.
More polished investor, they could say, are being attracted to these L2s thanks to their robust foundations. These L2s are, analysts say, going to see institutional capital entering into this space.
A bullish spin must be given with on-chain data. The whale wallets are slowly rotating their funds from blue-chip alts to narrative tokens such as FPPE and WLFI. This week, the altcoins on the DEX side have seen their volumes surge by 19%.
Gas usage in Ethereum has seen a rise as well, a trend much different from what had been observed earlier, almost invariably indicating a rise in on-chain activities by both traders and DeFi players. This upbeat trend is indicative of a growing sense of confidence and the early signs of mass interjection by retail.
With market sentiment boosting, high-risk, high-reward plays are grabbing momentum. FloppyPepe (FPPE) continues with its bonus tiers like FLOPPY100, wherein investors get a 100% bonus during its presale, and WLFI, with liberty-oriented narratives, are seeing good wallet activity and growth on Telegram. These bonus schemes and narrative packs are the primary drivers in altcoin hype cycles.
If investors want to be outside the large caps, meme-Fi-style tokens and mid-cap L2s remain interesting contenders. Given the upside maximization strategies for Q3 2025, a small allocation to so-called narrative projects like FloppyPepe (FPPE), WLFI, BONK, and DOGE, while maintaining some exposure to mid-cap utility coins, may be worth considering.
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