Recently, a phenomenon worth pondering has emerged— a Chinese Meme coin's market cap surged to $29 million in one go, with a daily increase of up to 143%. Although it later retreated to over $26 million, this process exposed quite a few things.

From an on-chain perspective, the signs are clear. Trading volume suddenly exploded, large transfers appeared frequently, and thousands of small addresses were frantically buying up. This scene is all too familiar— a typical FOMO-driven surge. Interestingly, the on-chain holdings of Bitcoin and Ethereum remain relatively stable, with no obvious signs of whale activity, indicating that the core market funds haven't followed the trend, and overall, the market hasn't gone out of control.

The flow of funds tells a lot. Hot money is searching everywhere for emotional low grounds, throwing money wherever there's a spike. This Meme coin rally is essentially a pure emotion game, with no real value backing it. But it also sends a clear signal— the market is currently severely lacking genuine hotspots. When funds start speculating on altcoins, it often signals the beginning of an altseason.

In the short term, this kind of emotion-driven market may continue to fluctuate, with increasing volatility. But from a medium to long-term perspective, funds will ultimately return to mainstream value coins. Bitcoin and Ethereum, as the market's stabilizing anchors, remain highly attractive. Reaching new highs in the second half of the year is not just wishful thinking.

For retail investors, the biggest danger in this rally is chasing highs. When the emotion subsides, the last to buy in are often the ones left holding the bag. A wiser strategy is to wait for the sentiment to cool down and gradually position in mainstream coins at their lows, increasing the chances of success. After all, the market's logic ultimately returns to fundamentals— only value can sustain the longest.