The influx of meme coins has introduced a new wave of volatility in the crypto world, with Ethereum transaction fees spiking as a result. Nevertheless, this same phenomenon is also providing fresh capital for non-fungible tokens.

Money generated through the major cryptocurrency, such as Bitcoin, often trickles down to the smaller and more obscure altcoins.

In the past two years, we have witnessed two major developments; firstly, there has been the growth of NFTs as an entirely new digital asset class. This new form of investment fits perfectly within the existing economic cycle.

In my estimation, NFTs - including PFPs - are a blend of identity management, membership clubs, and fungible tokens. Some of the larger ones on the market include Bored Ape Yacht Club (BAYC) and Azuki; examples of those in the mid-size range are Mfer's, Nakamigo's, Milady's; then come the smaller ones up to meme-coins which serve no purpose beyond providing amusement through social media posts.

Memes have made a mark in the digital asset industry - this is evident with the quick success of $DOGE, $SHIBA, and now, the incredibly popular $PEPE token. In only several days, it boasts an impressive market cap of over 150 million dollars.

As retail crypto investors began to become bored with the Nakamigos and BAYC communities, some large holders decided to move away. This opened up a window of opportunity for meme coins, which came back in strong this past week with $PEPE leading the charge. While there is no guarantee that it will remain popular, who can say for sure? Only time will tell!

This past week saw a surge in Milady Maker's PFP assets as excitement about memecoin grew.

Digital assets have just recently made an appearance and it's yet to be seen how they fit into the mix. However, one thing is clear - when larger caps are rising in value, they take up a lot of liquidity from lower-mid cap alternatives. When they stop growing, the capital flows back to those same small caps. This cycle occurs across asset classes (NFTs, fungible tokens) as well as different categories such as PFPs and Game-FI. Because of this trend, the entire Web3 space seems incredibly unpredictable.

It is evident that the dynamic of NFTs and meme coins has created a brave new world of trading, wherein liquidity ebbs and flows can cause confusion even for experts. As a result, fresh trends are burgeoning in this unfamiliar terrain.

It's clear from this discussion that there are many individuals who take an interest in trying to identify trends and patterns. However, it is important to remember that the views expressed here should not be taken as financial advice.