First of all, in case any reader doesn't know, it is necessary to clarify that Murad Mahmudov is one of the leaders of the "memecoin cult" in this bullish cycle of cryptocurrencies.
This Bitcoin (BTC) bull and Princeton University graduate worked at traditional financial institutions like Goldman Sachs and Glencore before turning his attention to BTC. In 2019, he founded Adaptive Capital, a hedge fund that closed in March 2020 after significant losses during a market crash.
In 2024, Mahmudov surprised his listeners at the Token 2049 conference in Singapore. There he presented his thesis that a “memecoin super cycle” is developing, which is only in its initial phase.
Why is the memecoin super cycle happening?
The investor identifies three reasons to explain why this memecoin-mania has occurred in the market.
First, Mahmudov mentions that there is a “massive overproduction of tokens.” During his presentation at the aforementioned Token 2024 conference, he claimed — based on his personal research — that “in 2024, until April, 600,000 new tokens were released, which is an average of more than 5,500 per day.”
As a second point, the specialist says that there are inflated valuations of cryptocurrencies on centralized exchanges. To substantiate this, Mahmudov briefly explains how this business works:
Thirdly, Mahmudov mentions the overvaluation of many altcoins since their launch, for reasons similar to those mentioned in the previous point. He says that many cryptocurrencies come to market with already inflated prices “which leaves little room for retailers to profit.”
Unlike all this, the specialist points out that memecoins (or at least most of them) "do not have unlocks nor are they overloaded with insiders controlling the supply."
He cites the example of#dogecoin(DOGE), shiba inu (SHIB),#pepe(PEPE) and#dogwifhat(WIF) which “have proven they can reach valuations of tens of billions of dollars, consolidating the idea that the token itself is the real product.”
As an additional factor to explain the growth of memecoins, Mahmudov points to broader issues such as rampant inflation, economic inequality, loss of meaning in life and the diminishing influence of religion. The latter, he says, “leaves a void that is now being filled by communities, brands and experiences.”
What's next for the memecoin market?
Having said all this, Mahmudov proceeds to outline his projections for the coming months.
The#1investor prediction is that the market cap of memecoins as a whole will reach $1 trillion. Currently, according to data from CoinGecko, the market cap of this market is approximately $125 billion.
Secondly, Mahmudov anticipates that memecoins will have a 10% dominance in the cryptocurrency market. This is something that may seem hard to believe, considering that these are assets that make no promises and do not seek to solve any problems. But, if the investor’s thesis is correct, all of this becomes irrelevant, as explained above. The market is not interested in fanciful promises of “blockchain technology.”
Finally, the ‘king of memecoins’ anticipates that these assets will evolve into financial cults.
In conclusion, Mahmudov states that “the memecoin super cycle is not a passing fad” but “a natural evolution of a market that, more than technology, has always revolved around the human condition.”