Beyond the Hype: Why Serious Tokens Might Outperform Memecoins

Memecoins have been riding high, but the party might not last. Alkesh Shah, an analyst at Bank of America, thinks the market is growing up. He expects tokens with real value, like ETH, AVAX, and SOL, to outperform memecoins soon. These tokens power blockchain networks, similar to how Microsoft Windows powers apps. They've seen gains too, with ETH up 30% and AVAX up 36% since the election. Shah thinks the rally won't be like the crazy ones in 2017 or 2021. He believes 99% of tokens with no real value will fade. Meanwhile, tokens generating cash flows, like BTC and those powering networks, will do better.

Memecoins like Shiba Inu and Dogecoin have seen big jumps, with Dogecoin up 150% thanks to Elon Musk's support. But other cryptos, called altcoins, could gain more under a pro-crypto Trump administration. Bigger trading volumes could help companies like Coinbase, which makes money from trading fees. Bank of America thinks Coinbase's stock could rise by 30%. Other stocks tied to bitcoin might benefit too, but it could take time.

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