Recently, an interesting phenomenon has emerged in the market: when PEPE surged by 38% in a single day, the entire market only increased by 3%. What signals might be hidden behind this huge disparity?

From historical experience, Meme coins have always been a barometer of market sentiment. Whenever these high-risk assets lead the charge, it often indicates that investors' risk appetite is quietly rebounding. These seemingly crazy price swings can sometimes be "early warning signals" before a cycle begins.

But reality is much more complex. Although the Meme coin market appears prosperous, it actually harbors risks. Historical data shows that its total market cap once plummeted from $150 billion to $47.2 billion within a year—behind such volatility are whale manipulations, severe fragmentation of liquidity, and inherently fragile fundamentals. Retail investors riding this wave must always be alert to sudden sharp pullbacks.

Even more noteworthy is the covert rotation of capital. After the hype around Meme coins subsides, some savvy funds are quietly shifting towards mainstream assets like Ethereum, which have stronger fundamentals. Institutional investors even use Meme coin performance as a reference indicator of "market optimism." This suggests that speculative behavior is becoming more strategic—no longer blindly following the trend, but using it as a hedge against market sentiment.

Interestingly, while discussions about Meme coins are lively within the community, the market's Fear & Greed Index remains cautious. This emotional disconnect is intensifying—the enthusiasm of retail investors contrasts sharply with the calmness of institutions, and a new round of capital battles is quietly unfolding.

So the question becomes: Is the excitement around Meme coins a reliable signal of a comprehensive market recovery, or just another high-risk emotional game? When chasing these rotation opportunities, how can one both seize the profits from speculation and avoid the underlying structural risks? This requires every participant to maintain clear judgment.