What’s Going On When Small Coins Outshine Bitcoin?
Hey everyone, John here! It’s great to have you back on the blog. Today, we’re going to talk about something really interesting that’s happening in the world of crypto. You know how everyone talks about Bitcoin? It’s the king, the big one that gets all the headlines. But sometimes, while the king is making steady moves, some of the smaller, lesser-known players in the kingdom have an absolutely spectacular day.
That’s exactly what we saw recently. While Bitcoin was doing its thing, a handful of other digital coins shot up in value, some by over 20% or even 30% in just 24 hours! It’s a bit like watching a small, independent film suddenly top the box office charts for a day. Let’s break down what happened in a way that’s super easy to understand.
The Big Picture: A Very Sunny Day for Crypto
First, let’s zoom out. The entire crypto market is feeling very positive right now. The total value of all cryptocurrencies combined has climbed past an incredible $3.7 trillion. To put that in perspective, that’s a jump of about 10% in just one week!
Lila: “Hold on, John. You said ‘total value of all cryptocurrencies’ and then mentioned trillions. What does that actually mean? It sounds huge!”
That’s a great question, Lila! It’s a term called market capitalization, or “market cap” for short. Think of it this way: imagine you wanted to know the total value of every house in a city. You’d add up the price of each individual house to get one giant number. That’s what market cap is for crypto. It’s the combined value of every single coin and token out there. When that number goes up, it means more money is flowing into the crypto world, and that usually makes people optimistic.
The experts have a fancy term for this: a “liquidity-rich bullish market environment.”
Lila: “Whoa, that sounds super technical! ‘Liquidity-rich bullish market’? Can you explain that in normal people words?”
Of course! Let’s break it down:
- “Liquidity-rich” just means there’s a lot of money available and moving around. Think of it like a river that’s full and flowing fast.
- “Bullish” is market slang for being optimistic. When investors are bullish, they believe prices are going to go up. (The opposite is “bearish,” when they think prices will go down).
So, a “liquidity-rich bullish market” is simply a time when there’s a lot of money in the system and everyone is feeling positive and ready to buy. It’s the perfect weather for prices to grow!
The Surprising Stars of the Show
In this positive environment, it wasn’t Bitcoin that stole the show. Instead, a diverse group of eight other digital assets had an amazing day. These coins fall into a few different categories, but the two main ones that stood out were memecoins and DeFi tokens.
First Up: The Wild and Fun World of Memecoins
So, what on earth is a memecoin? It’s pretty much what it sounds like: a cryptocurrency that was inspired by an internet meme or a joke. They often start for fun and are powered by a strong, enthusiastic community online. They are known for being incredibly unpredictable!
Here are the memecoins from the list that saw huge jumps:
- FLOKI soared by nearly 32%
- TOSHI jumped over 20%
- FARTCOIN (yes, you read that right!) was also up over 20%
- MEW (cat in a dogs world) rose almost 18%
- BONK gained over 16%
Lila: “Wait a minute. People are seriously buying cryptocurrencies based on internet jokes? Why would they do that? It seems so random!”
You’ve hit on the key point, Lila! For many, it’s about the fun, the community, and the thrill of it all. Because these coins often start with a very, very low price (fractions of a cent), even a tiny increase in price can lead to massive percentage gains. But—and this is a huge but—they are extremely risky. Their value is based almost entirely on social media hype and attention. They can go up incredibly fast, but they can crash just as quickly. It’s the high-risk, high-reward corner of the crypto world.
Next: The More Serious Side with DeFi
The other category that did really well is called DeFi.
Lila: “Okay, that’s another new one for me, John. What is ‘DeFi’?”
DeFi stands for Decentralized Finance. It’s a bit more complex than memecoins, but the idea is revolutionary. Imagine all the things you do with a bank—like getting a loan, earning interest on your savings, or trading assets. Now, imagine doing all of that without the bank acting as a middleman. DeFi aims to build a new financial system directly on the blockchain using automated programs called “smart contracts.” It’s like a transparent and open financial system for the internet.
The DeFi tokens that had a great day were:
- CRV (Curve DAO Token), which climbed by almost 27%
- FXS (Frax Share), which was up over 22%
These tokens are part of projects that provide useful financial services. For example, Curve helps people trade certain types of cryptocurrencies very efficiently, while Frax is a project focused on creating a type of stable digital currency. So, their value is more tied to the usefulness of the services they provide.
And One More That Connects to the Real World
There was one other big gainer that doesn’t quite fit into the memecoin or DeFi box: TRAC (OriginTrail). It was up nearly 17%.
This project is all about connecting blockchain technology to real-world things. For example, it helps track products as they move through a supply chain, from the factory to the store shelf. Think of it as giving real-world items a digital passport that can’t be faked, all recorded on the blockchain. It shows that crypto isn’t just about finance or jokes; it can have practical, real-world uses too.
What Does This All Mean? My Final Thoughts
John’s take: For me, this is a perfect example of how diverse and dynamic the crypto space is. While Bitcoin remains the steady, foundational giant, a lot of the explosive energy and excitement can be found in these other areas. It shows the market is maturing and has room for everything from serious financial tools to fun, community-driven projects. However, it’s also a powerful reminder of the volatility involved. Big gains can be thrilling, but they always come with significant risks, especially with memecoins.
Lila’s take: Wow, I really had no idea there were so many different types of crypto. I always just thought of it as Bitcoin and… well, that’s it! Learning the difference between a memecoin and a DeFi token makes it all a little less confusing. It’s cool to see what’s happening, even if the wild price swings make me a bit nervous. It’s definitely a space with something for every type of personality!
This article is based on the following original source, summarized from the author’s perspective:
Memecoins and DeFi beat Bitcoin as BONK, CRV, FRAX post over
20% gains in 24 hours