In the ever-volatile world of cryptocurrency, sentiment can swing wildly, and right now, Crypto Twitter (often abbreviated as CT) is buzzing with bearish vibes. A recent post from Adam Teh (@Adam_Tehc on X) captures this frustration perfectly, calling this the "worst altcoin cycle ever." Let's break down what he means and how it ties into the meme token space we're all obsessed with here at Meme Insider.

Adam points out that while the supply of stablecoins—like USDT and USDC, which are pegged to the U.S. dollar and used for trading without the volatility of other cryptos—has reached an all-time high (ATH), the rest of the market isn't keeping up. Specifically, if you look at the total crypto market capitalization excluding Bitcoin (BTC) and stablecoins (often referred to as Total2), it hasn't even surpassed the highs from 2021.

This chart from Counterparty Research illustrates the disconnect: the yellow line represents the altcoin market cap (minus BTC and stables), which peaked in 2021 and has since retraced, while the green area shows stablecoin supply steadily climbing to new records. Without the influx from stablecoins propping up the overall market cap, altcoins—including many popular meme tokens—have essentially been in a prolonged downturn compared to previous cycles.

For meme token enthusiasts, this is particularly stinging. Meme coins like Dogecoin, Shiba Inu, or newer entrants thrive on hype, community momentum, and liquidity flows. But with so much capital parked in stablecoins (perhaps waiting for the next big opportunity or farming yields), there's less money chasing these high-risk, high-reward assets. It's like everyone's sitting on the sidelines with their stablecoin stacks, leading to what feels like a "fake" bull market driven by BTC and stables alone.

Adam's take explains the pervasive bearishness on CT: without stablecoins, we've retraced gains from past cycles, making it hard for alts to gain traction. This could signal a capitulation phase where sidelined capital finally rotates back into riskier plays, potentially sparking the next meme coin frenzy. Or, it might highlight a maturing market where Bitcoin dominance continues to grow, leaving memes to fight for scraps.

If you're building or trading in the meme token ecosystem, keep an eye on stablecoin flows—they could be the key indicator for when the party really starts. For more insights on meme token trends and blockchain tech, check out our knowledge base or follow us on X for real-time updates. What do you think—is this cycle salvageable for alts, or are we in for more pain? Share your thoughts in the comments!