In a year of significant volatility in the cryptocurrency market, memecoin has emerged as a key player, outperforming Bitcoin (BTC) and other major cryptocurrencies in the ecosystem. This trend was highlighted by recent insights from market expert Miles Deutscher, who highlighted memecoin analyst Muradâs presentation at the TOKEN2049 conference in Singapore.
Memecoins Challenge Traditional Cryptocurrencies
According to Murad, only 43 tokens will outperform Bitcoin in 2024, of which 13 are memecoins. Notably, eight of the ten best-performing tokens on the market this year are also memecoins.
Murad stressed that this cycle is different from previous ones, asserting: âThe memecoin cycle is not a prediction; it has already startedâmemecoin is dominating almost every metric.â
The rise of memecoins can be attributed to a number of factors, most notably their ability to resonate with retail investors looking for community, identity, and excitement, rather than simply potential financial returns. As Murad puts it, âMemecoins are a more advanced version of altcoins.â
The appeal of memecoins goes beyond speculation; they are said to foster a culture that fosters community and âemotional connectionâ among investors. Murad notes that these tokens allow users to participate in a shared experience, providing real value through stories that âcreate trends and spark movements.â
Success stories of significant growth â such as those with tokens like dogwifhat (WIF) and Pepecoin (PEPE) â spread quickly, fueling interest and excitement in the memecoin space over the past year.
According to Deutscher, the most successful cryptocurrencies have developed strong communities, often resembling âraving followers.â Cryptocurrencies like Bitcoin, Ethereum, and Dogecoin have thrived on this dynamic, and memecoins are taking full advantage of it.
SPX and GIGA attract retail attention
Murad further explained that the recent performance of altcoins on platforms like Binance has further fueled the memecoin narrative. Almost every altcoin listed this year is trading below its listing price, with only two exceptions: WIF, a memecoin, and JUP, which facilitates memecoin trading.
Murad further alleges that retail investors prioritize making money (70%), having fun (20%), and feeling a sense of belonging (10%). Murad argues that memecoins embody this speculative nature, similar to the 2017 ICO craze, but in a new form.
Instead of initial coin offerings, Murad notes that memecoins are allowing early-stage investment at lower valuations, which is in stark contrast to altcoins, where the majority of profits are captured in private markets.
Deutscher also praised that as the memecoin phenomenon continued to grow, Murad's insights impacted market dynamics, creating one of the strongest memecoin price rallies of the year.
Tokens known as âMurad coins,â such as SPX and GIGA, have seen significant growth, attracting the attention of retail investors excited about the potential returns.
At the time of writing, SPX is trading at $0.575, up a whopping 35% over a 24-hour period, showing the impact of Muradâs involvement in TOKEN2049 earlier this September.
