On the Verge of Upside: Key Opportunities This Week

GM, anon!

It looks like we’re on the verge of some serious upside. Let’s dive into some quantitative sentiment data to gauge how users are feeling, and then break down key opportunities for you this week. These include yields in the re-emerging DeFi space, AI tokens that could act as beta plays on already surging  AI large caps, and, of course, some promising meme opportunities!

By the way, have you signed up for The Coiners yet? The community has been buzzing, with members making impressive gains. In fact, one member recently nailed the perfect trade thanks to the insights he gained from experts like VirtualBacon. Now’s the time to join and soak up all the knowledge you can!

Furthermore, this week’s live stream was packed with insights to help users navigate the market. Key takeaways included expectations for a small retracement in the tech sector, though October typically performs well. The market appears to be starting a new trend with higher highs and higher lows, with a potential BTC reload zone around $63K–$64K. ETH continues to underperform, with ETH/BTC near lows, while double bottoms are seen as favorable patterns. Charts covered included Shib, Core, Akash, LTC, Sol, Link, Uni, and ZK, with high-risk degen picks such as Skey, RSS3, and Beam also discussed. 

Join The Coiners now for free and catch next week’s livestream.

TLDR

• Sentiment indicators flash positive, market likely primed for breakout above ATHs

• DeFi protocols like JUP, AERO, PYTH, and AAVE are showing gains, with DEX volumes increasing

• GOAT token gains significant traction, peaking at a $360M market cap, driven by the AI narrative

• Base overtakes Arbitrum as Ethereum’s largest  L2, with $2.5B TVL, fueling a new wave of memecoin trading

• Platforms like Aries Markets, Amnis Finance, and TruStake on Aptos could offer future airdrops for active users

• Bitcoin ETF inflows hit $555.9M on October 14, signaling strong market confidence and institutional interest

Current Market Sentiment

Summary: The short and medium term is up, now would be a good time to be fully allocated. 

Sentiment

So, where are we in terms of market sentiment?

Sentiment indicators are notoriously volatile, often fluctuating dramatically. However, they provide a useful snapshot of current user sentiment and expectations. Recently, user expectations for BTC have been trending downward, hovering near the neutral 0 midline as we move through October according to Sentix data.

The Fear & Greed Index is more bullish, currently hovering around 70. However, this indicator is notoriously volatile, so it's important to interpret it with caution.

Below is by far the most insightful of these indicators; it’s the collective Google search volumes for the most common crypto search terms; we see that interest in crypto is hitting yearly lows and continues to decline. Isn't it curious how retail investors are always late to the party—especially when now seems like the perfect time to be accumulating and be fully allocated?

Another highly relevant data point is the upcoming presidential election. Regardless of personal opinions, a Trump victory is considered extremely bullish for crypto. According to the latest odds on Polymarket, a Trump win appears increasingly likely.

BTC ETF Flows

Bitcoin ETF inflows have been strong over the past week, adding to positive sentiment. October 14th recorded the highest inflow, reaching $555.9M, with steady activity throughout the week, including $470.5M on October 17th.

Open Interest & Funding Rates

Open interest is currently elevated, a common signal that markets are nearing local tops, as increased leverage often leads to volatility and potential reversals. This suggests caution, as high open interest can trigger sharp moves when positions unwind.

Funding rates, while positive, remain moderate and are not overextended. This indicates that although sentiment leans bullish, the market isn't excessively leveraged, reducing the immediate risk of liquidations.

In summary, the market appears optimistic but not overheated. Elevated open interest points to potential volatility, while stable funding rates suggest room for further upside without immediate correction risks.

Coin Moves

The past week has seen memes dominate once again, but there have also been notable moves among major non-memecoin assets.

Majors

Worldcoin has been a standout gainer this week, highlighting the continued strength of the AI narrative, which has also influenced the rise of AI generated memecoins—more on that shortly.

The AI sector is currently led by the following top coins by market cap: NEAR ($6B), TAO ($4.2B), ICP ($3.7B), FET ($3.6B), RENDER ($2.1B), GRT ($1.5B), and WLD ($1.2B). These AI coins, each valued over $1B, are likely to be the strongest and most consistent performers as the next leg of the bull market unfolds.

For those seeking higher upside, smaller-cap AI plays such as AKT ($624M), AIOZ ($560M), ARKM ($550M), and PAAL ($194M) present further opportunities. However, it's important to note that smaller, high-beta plays on narratives don't always pan out, and sometimes the larger-cap leaders end up delivering the strongest returns.

Some insights from Alex Becker for those of you with an interest in AI tokens.

Checkout these more risky lower cap AI tokens if venturing into this sector interests you: 

• AITECH ($111M)

• VIRTUAL ($104M)

• 0X0 ($101M)

• POND ($97M)

• SIDUS ($40M)

• COMAI ($32M)

• PALM ($31M)

• SNS ($23M)

This week, APT saw an impressive 17% price increase, reflecting sustained interest in alternative L1s compared to other major L1s. As interest in Aptos grows—following the success of SUI, which is approaching the top 20 by market cap—we're likely to see a full-blown memecoin season and other highly speculative product offerings emerge within the ecosystem.

Looking at the TVL across both ecosystems, Aptos is making significant strides, indicating strong development and adoption momentum.

The top protocols on Aptos present opportunities to get ahead of the hype by owning their tokens. Notably, Aries Markets, Amnis Finance, and TruStake currently do not have tokens. This could be a prime opportunity to position yourself for a potential airdrop by interacting with these platforms. Worth checking out, anon!

In other well-performing sectors, DeFi protocols are making a steady comeback. Notable gainers this past week include JUP (12.8%), AERO (12.1%), PYTH (8.4%), and AAVE (8.3%).

On that note, here’s a quick data point: DeFi is showing signs of resurgence, with DEX volumes serving as a strong indicator of increasing user activity.

If you have idle capital, consider checking out the yields on Aave for stable returns. If you hold key assets, you can earn even higher yields, such as 4.35% for AAVE, 4.88% for GHO, and 12.35% for ABPT V2. Check it out here.

Other notable yields can be found by contributing assets to Jupiter's JLP pools, offering impressive double-digit returns. Be sure to check it out and learn more below!

On Aerodrome, the top DeFi protocol on Base, impressive gains are also available. It's worth exploring for those seeking strong returns.

Memes

After a sharp slump in August and September, DEX bot trading volumes are climbing dramatically once again, signaling a renewed surge in memecoin trading.

Most trading remains heavily concentrated on Solana, despite a recent rotation back into Ethereum-based memes.

Murad's recent list has been circulating widely, with many users accumulating large positions in the coins he mentioned. Every cycle features influential figures who, for better or worse, shape the direction and success of an ecosystem. How this plays out for Murad—and those following his picks—remains to be seen. 

However, it’s likely that towards the end of the bull market, many of these coins will experience heavy selling, with most users serving as exit liquidity. Stay cautious and actively monitor your positions in these coins to avoid getting caught in the sell-off.

Moving on, the meta this week has largely revolved around coins like GOAT. For those unfamiliar, here’s a quick recap of the development: GOAT peaked at a $360M market cap just four days after launching on October 13. Created for less than $2 by an anonymous developer via Solana’s memecoin app, Pump Fun, the coin quickly gained traction. Despite speculation, Truth Terminal, its creator Andy Ayrey, and Marc Andreessen were not involved in its development.

Truth Terminal—an AI experiment in memetic engineering—inspired the creation of GOAT through discussions ranging from existentialism and internet culture to the infamous Goatsee meme. Although the AI wasn’t intended to develop crypto, its connection to the coin sparked curiosity, drawing meme traders. Ayrey later admitted that the memecoin’s viral success far exceeded his original research goals, which focused on AI safety and alignment.

Interestingly, Marc Andreessen of Andreessen Horowitz had provided $50,000 in Bitcoin to Truth Terminal for research, though he denied any involvement with GOAT. Meanwhile, the Truth Terminal AI has unofficially become the figurehead of the community, with scammers already impersonating it to exploit its newfound influence.

Other coins acting as beta plays on this narrative include:

• FLOYDAI ($7.3M)

• MEDUSA ($8.9M)

• FOREST ($17.2M)

Mindshare data, which measures the attention given to tokens over the past week, was dominated by GOAT. Other tokens seeing a resurgence include Mog, GINNAN, FWOG, GIGA, SPX, and SCF. However, most of the mindshare remained concentrated on the shiny new AI-generated memecoin meta.

Lastly, in case you missed it, Base has overtaken Arbitrum to become the largest Layer 2 on Ethereum, with over $2.5B in TVL. This milestone has fueled a surge in memecoin trading, though it still pales in comparison to the activity seen on Solana.

If you believe a rotation from Solana to Base is on the horizon and that Base will capture most of the mindshare in the coming months, consider exploring some of these memecoins. These well-established tokens have the potential to become the next big runners.

*holder count in brackets 

The largest ones by market cap include:

• BRETT (690,686)

• DEGEN (784,018)

• TOSHI (461,847)

While smaller coins worth noting are: 

• NORMIE (95,466)

• KEYCAT  (141,027)

• MFER (92,392)

• BENJI (87,463)

• MIGGLES (123,477)

• SKI (82,297)

• WEIRDO (454,078)

• BOOMER (2,395,298)

• CRASH (93,151)

• ANDY (122,613)

• CHAD (119,599)

• HIGHER (88,200)

That wraps up today's insights! We hope you enjoyed today’s issue! Till next time anon.