Article source: Foresight News.
Author: shaofaye123
Memecoins are an unavoidable theme in 2024. Classic meme coins like Dogecoin and Shiba Inu have averaged more than five times their increase in 2024, while emerging meme coins like MooDeng and PNUT have seen investment returns as high as hundreds of times. The oversupply of tokens and the high circulation and valuation of VC coins have led this round of the bull market to become a non-interchangeable bull market. Therefore, Memecoins have performed exceptionally actively in this round, becoming indicators of on-chain liquidity, whistleblowers of new narratives, and thermometers of market sentiment.
This year, we witnessed the process of Memecoins evolving from frenzied speculation to gradually entering mainstream culture and consensus effects, leading to a great transfer of wealth. In this process, issuance methods have continually innovated, asset types have rapidly transformed, and mainstream acceptance and adoption have driven its vigorous development. Each transition hides opportunities for exponential wealth. Looking back at the 2024 Memecoin super cycle, let us witness the changes and opportunities of this year together.
Infrastructure is increasingly完善.
The prosperity of this round of Memecoin super cycle is inseparable from the continuous improvement of infrastructure. Whether it's the innovation of B-end underlying issuance methods or the optimization of C-end user experiences, both have provided conditions for the rapid influx of funds and expansion of users in the Memecoin ecosystem.
Innovation in issuance methods.
The traditional method of issuing Memecoins is similar to that of ordinary tokens. However, as Memecoins are part of the attention economy, market hotspots change rapidly, yet the asset issuance cycle is lengthy and complex. User preferences and speculation rhythms vary across major public chains, making it difficult to concentrate market attention and liquidity, and achieving a rapid increase in asset prices in the short term is challenging.
PUMP.FUN: The core engine of the super cycle.
This year's surge in money-making triggered by BOME and SLERF, despite its presale model changing the way of issuance to some extent, has attracted market attention. However, frequent RUG pulls in the money-making scheme remain, and the aforementioned issues have not been effectively resolved. The emergence of PUMP.FUN has effectively addressed this situation, leading to a shortening of the Memecoin issuance cycle, continuous capital flow, and a gradual concentration of users, laying the foundation for the opening of the Memecoin super cycle.
PUMP.FUN was created by founder Alon in January 2024, but it initially had few followers and only began to enter the public eye in April. It has now issued nearly 5 million Memecoins, accounting for nearly 70% of Solana's daily token issuance, becoming the highest-earning protocol on Solana. As the engine of the Memecoin super cycle, optimizing the asset issuance method is its core advantage. It allows users to create tokens without any technical knowledge (after the August update, there is no $2 creation fee required), with fair fundraising on the platform + a reasonable price curve (Bonding Curve) successfully reducing the cost of asset issuance and increasing the speed of issuance, effectively addressing the issue of rapid market fluctuations in the Memecoin hot spots.
Moreover, the success of PUMP.FUN is not only due to innovative mechanisms. Its user positioning and product design are also quite excellent. From the user's perspective, it addresses the real problems faced by most people in the Web3 market: "Users want a simpler, faster, low-cost way to obtain higher multiples of returns." From the product side, it is one of the few projects with a complete business cycle, with clear and traceable sources of profit. (Before launching on Raydium, the platform's transaction fee was 1%, and the 'listing fee' during the launch process was 6 SOL.)
Currently, according to Dune data, as of December 23rd, PUMP.FUN has deployed nearly 5 million Memecoins since its launch, with daily active users reaching up to 300,000 and daily new addresses reaching 170,000. According to DefiLlama data, PUMP.FUN's protocol revenue in the past 30 days reached $94 million, with cumulative protocol revenue approaching $300 million.
PUMP.FUN clones are emerging frequently, with continuous micro-innovations.
PUMP.FUN has initiated this round of the Memecoin super cycle, and the subsequent continuous emergence of clones has further prospered the super cycle.
Sun.pump: The fifth piece of the public chain's Memecoin Launchpad.
A large influx of capital and market attention has led various public chains to launch PUMP.FUN clones, making Memecoin Launchpad a standard fifth piece for public chains.
Major public chain ecosystems are beginning to support Memecoins across upstream and downstream. On BSC, platforms like Four.meme and Flap attract market attention by constantly launching activities and collaborations; on the Base chain, platforms like Ape.Store, Rug.fun, and Trugly.meme engage users with various gameplay; on BTC Layer 2, many clones have emerged, such as LnPUMP.FUN, SatsPUMP.FUN, and CPUMP.FUN. Meanwhile, Sun.pump on the Tron chain has driven a 'renewed prosperity' for the entire Tron chain by its own efforts. The influx of hot money on the Tron chain surged, rapidly gaining popularity, leading to a spike in on-chain Gas, and the long-dormant TRX price also achieved a nearly three-year high. However, after this, TRX has been on a downward trend, currently falling back to 0.24 USDT.
Watching him build a tall building, then watching it collapse. As a fast way to attract users, Memecoins have brought a wave of profits to public chains, but how to sustain ecological construction is worth pondering.
MakeNow.Meme: Optimization of market-making models.
MakeNow.Meme is currently not as hot as before, but it attracted widespread attention when it was first launched. It issued over 2,600 Memecoins in a single day, with earnings exceeding 230+ SOL. Compared to PUMP.FUN, its issuance mechanism not only simplifies the asset issuance method but also provides a new direction for market-making models.
Further simplification of asset issuance methods—on Twitter, tweets can be published in a fixed format (tweet starting with the $ symbol and stock code, plus token description/video/image, etc.) and tagged to the official account, waiting for the official account to reply with the token contract address in the comments.
Optimization of market-making models—on the surface, it seems that everyone needs to scan the chain to obtain contracts first. However, in reality, KOLs or project parties may privately reach agreements with the platform to buy low-priced chips in advance.
According to Dune data, MakeNow.Meme gradually faded into obscurity just a week after its creation, leading to an outcome where it was no longer attended to. This perhaps confirms that the core narrative and main logic of Memecoins still revolve around the pursuit of fairness.
Moonshot: Backed by DEX Screener's natural traffic.
Moonshot was developed by DEX Screener around June this year. While backed by DEX Screener and even embedded in the platform, its data remains scarce compared to PUMP.FUN. Although it has natural traffic support, it seems unprepared for traffic conversion; it does not display MetaData before launch, and the launch history cannot be easily traced, lacking transparency in functionality.
Its data performance after going live has also been relatively mediocre. This may indicate that the flow entry always exists, but how to convert users is the key.
Optimization of user experience.
In addition to innovations in asset issuance methods and the inflow of capital, the optimization of user experience is also a reason for the large-scale outbreak of Memecoins this round.
TG Bot: Optimization for Web3 users.
Behind this round of Memecoin super cycle, the development of tools and on-chain robots has been crucial, with their functions rapidly iterating. From sniper and dollar-cost averaging to security checks and correlation analysis. Powerful tools and robots safeguard users' gold mining on-chain, pushing Memecoins towards the masses from the demand side.
During this period, tools for Memecoin trading expanded from mobile to web platforms, catering to different segmented needs. There are professional trading sites compatible with multiple chains, like gmgn.ai, Bullx, Photon, as well as convenient TG bots like Banana Gun, Tojan, Bonkbot, etc. These specialized services for Memecoin trading have leveraged the gold rush of Memecoins, transitioning from a broad approach to a more in-depth one, with increasingly perfected tools for wallet analysis, Twitter monitoring, and security checks. In this process, the number of TG Bot users has continually risen, with daily active users exceeding 140,000 and daily trading volumes reaching nearly $500 million. Although there is still a long way to go compared to on-chain DEXs, under the influence of the Memecoin super cycle, this niche remains a blue ocean.
MoonShot: Optimization for Web2 users.
Apart from Web3 users, Memecoins also serve as the most direct way for Web2 users to enter and understand Web3. However, there are still numerous issues in Memecoin trading, such as high security risks, dispersed platforms, and difficulty in acquiring Gas. The MoonShot, participated in by the PUMP.FUN incubation team Alliance DAO, has solved this issue to some extent.
It is a mobile application focused on Meme trading built on the Solana network, allowing users to directly purchase Memecoins through fiat deposit methods like Apple Pay, credit cards, and PayPal. This simplification of social login and fiat deposit processes has brought more new users and funds to the Solana ecosystem, connecting on-chain Memecoins with off-chain capital. However, currently, as the wealth effect diminishes, the activity level of MoonShot users is also gradually declining. How to effectively convert Web2 users remains a persistent issue in the crypto space.
Rapid iterations of narratives among major players.
As the most representative of the attention economy phenomenon in the crypto market, Memecoins are witnessing a trend of diversified narrative development under the market boom in 2024. Reflecting on past various god coins, the themes of Memecoin narratives vary. However, each type represents specific market trends, community dynamics, and capital operation models. Based on past patterns and characteristics, we can roughly categorize them into four types: event-driven derivative Memecoins, community-driven IP Memecoins, celebrity effect-driven conceptual Memecoins, and emerging Memecoins across multiple dimensions and fields. Various types influence each other and are not entirely independent.
Derivative Memecoins triggered by events.
Memecoins triggered by sudden events often gather extremely high attention initially, and the flow of traffic and capital can rapidly drive up the prices of Memecoin assets. The process from occurrence to rise is often sudden and difficult to replicate, characterized by rapid explosions with high short-term multiples but insufficient sustainability, requiring the search for other motivations once attention wanes. Similar targets include BOME, SLERF, FIGHT, BAN, which can be categorized as event-driven speculative Memecoins.
BOME (BOOK OF MEME) is a presale project initiated by Pepe Meme artist Darkfarm, raising over 10,000 SOL in presale funds. Due to widespread attention, the trading volume of the token broke $200 million, and three days after its launch on Binance, its market cap exceeded $1 billion. SLERF, which later adopted the same presale mechanism, experienced a surge in Meme token prices due to the DEV accidentally destroying LP and airdrop reserve tokens, leading to a spiral increase in prices due to the incident and subsequent spread.
However, if the Meme triggered by sudden events does not gain sustained attention from the market, its price will converge and decline. The Fight token derived from Trump’s assassination slogan once had a market cap exceeding $80 million, but now, lacking attention, its market cap has dropped by over 90%; the art concept Meme coin BAN, issued by Sotheby's vice president Michael Bouhanna on PUMP.FUN, saw a peak decline of 85% after its listing on Binance.
Community-driven IP Memecoins.
IP-type Memecoins often have strong consensus, forming long fermentation periods, which after prolonged cycles can build communities. This type of community-driven IP Meme shows strong resilience during the fluctuations of 2024. Its emergence to new highs may undergo prolonged consolidation, characterized by high community consensus, a strong CULT temperament, or exhibiting strong resilience during repeated declines and rises. Similar cases include Cult series POPCAT, SPX, APU, and other MEW, NEIRO, MANEKI, which have already formed IP.
MEW (cat in a dogs world) is a brave cat that fights against dogs. After launching its token in March this year, it reached a peak market cap of $1 billion as a pioneer in the 'cat track'. Later, another IP, Maneki (Japanese lucky cat), also referenced its 90% liquidity pool and 10% community allocation mechanism, leading to a brief FOMO. Another community IP type Memecoin is Neiro, named after the rescue dog adopted by Kabosu, the owner of the deceased Dogecoin prototype Shiba Inu. The token reached a market cap of nearly $50 million within two days of listing, with its price fluctuating around on-chain issues and capitalization problems. The asset speculation extended from on-chain to exchanges. The lowercase Neiro on Ethereum ultimately triumphed thanks to its community, reaching a peak market cap of $1.2 billion. Additionally, Murad, as a new star in the super cycle, has set its token screening criteria to exist for at least six months and have experienced at least two 70% drops. Therefore, the temporary rise of SPX, while benefiting from its influence, is also due to the importance of community IP which allowed it to be reborn amid repeated declines.
Celebrity effect-driven conceptual Memecoins.
The performance of Memecoins is often correlated with key individuals; celebrities can promote related ideas through specific Memecoins, and tokens can further gain popularity due to celebrity effects. Its core characteristic is that the price volatility of the coin is related to the size of the celebrity's influence and the strength of the binding relationship. Similar examples include DOGE, PNUT, TERMINUS, led by Musk, and others like JENNER, MOTHER, etc.
The behavior and influence of celebrities issuing tokens have changed in this round of the Memecoin super cycle due to the emergence of Pump.fun. The rhythm is faster, and the multiples are higher, attracting many Web2 celebrities to participate. Caitlyn Jenner, a member of the Kardashian family, developed the JENNER token, which surged 160 times overnight; the well-known American female rapper Iggy Azalea's tweet about the Meme coin MOTHER contract skyrocketed thirty times in two minutes, reaching a market cap of over $200 million at its peak. Concept coins related to Elon Musk have also been a focus for Memecoin players; whenever he posts topics of interest on social media, such as Mars concepts (TERMINUS), government efficiency departments (D.O.G.E), and political concepts (PNUT), the related tokens on-chain often see short-term surges.
Emerging Memecoins across multiple dimensions and fields.
The prosperity of this round of Memecoin super cycle is no longer limited to native Web3 content but spans multiple fields, covering a wider range of topics and themes. Within various segments, there is a wide variety of speculative targets, quickly forming circles of interest and attracting attention from multiple fields. From TikTok traffic to new AI technologies, to DeSci (Decentralized Science), physics, and other cutting-edge disciplines, the momentum of Memecoin speculation is rapidly spreading, with the involved fields continuously expanding, showing a trend of cross-border integration. Memecoins seem to become a testing ground for emerging technologies, an experimental field for unverified tracks. The core characteristics of this type of Memecoin are innovative narratives and wide-ranging outreach.
Moo Deng is a baby hippopotamus born in a zoo in Thailand, which became a darling on social media like TikTok and Instagram due to its inherently meme-like expressions, eventually becoming the year's meme on Twitter. The Moo Deng token on Solana once reached a market cap of $700 million, successfully landing on Coinbase as the smallest Memecoin by market cap, sparking demand for meme speculation in the Web2 sector. After that, PESTO and CHILLGUY tokens also attracted widespread attention due to their strong Web2 traffic, with market caps once exceeding $500 million.
Subsequently, the speculation around AI agents has also been fervent. GOAT, launched in June this year, is an AI Bot – Truth Terminal (@truth_terminal). Its market cap surged to over $1 billion in a short time, followed by AI Memecoins like ACT and ELIZA quickly capturing the minds of on-chain players. Applications related to AI agents such as ai16z, zerebro, virtual, and aixbt have gradually developed into an ecosystem. Later, Binance announced an investment in BIO, bringing DeSci (Decentralized Science) into the public eye. This was driven by the Pump.Science platform, where tokens RIF and URO started a new round of speculation, reaching a market cap of over $200 million at their peak.
Mainstream acceptance and adoption.
Memecoins have evolved from initially marginalized assets to assets widely regarded by institutions and investors, with a continuously growing user base and increasing capital inflow, gradually gaining recognition and adoption in mainstream markets.
In terms of capital inflows, market liquidity is clearly traceable. Numerous institutions have begun to allocate Memecoins; major exchanges have successively listed Memecoins; market makers are actively stockpiling Memecoins. By December 23, 2024, the total market cap of Memecoins has climbed to $230 billion, showing a continuously growing trend. According to a report released by Bybit in June, institutional investors had increased their spot holdings by nearly $300 million in the first half of the year. Almost all crypto exchanges have listed various Memecoins; Binance has cumulatively listed over 20 Memecoins since 2024 (including futures and spot), of which 80% of the tokens saw significant growth in market cap after listing on Binance. Five crypto market makers, including Wintermute, GSR Markets, Auros Global, B2C2 Group, and Cumberland DRW, all hold Memecoins, with a total holding value exceeding $100 million.
From the perspective of user growth, there has been a significant change in attitude. In the first half of the year, A16Z was still debating value coins, but they began to participate in speculation, unexpectedly giving rise to the first AI Memecoin, GOAT. Vitalik Buterin has also made projections about the future of Memecoins, participating in the promotion and charity work of MooDeng. A partner at Pantera openly expressed recognition of Memecoins, considering them the simplest way for the next generation to experience the latest DeFi applications and introduce them to Web3. Moreover, more and more Web2 users have begun to recognize the value of Memecoins. Scientific aid experiments from DeSci, Dogecoin's ocean garbage cleaning plan, and NOT as social tipping and red envelope functions have created fertile ground for Web2 users to understand and accept Memecoins. According to statistics, from the beginning to the end of 2024, the global number of Memecoin users has surpassed 50 million and continues to grow.
Conclusion.
BTC, regarded as the largest meme coin from the perspective of Web2, has surpassed $100,000, proving its worth in the market. As an early participant in Memecoins, are they merely gamblers chasing wealth or visionary investors? Where will Memecoins ultimately head, towards marginalization and gradual extinction or towards gradual development and mainstream acceptance?
Cycles alternate, time tests truth, and the answer is written in the future.
