The number of BTC discussions last week was 14.31K, down 26.18% from the previous week; the price last Sunday was $96,743, down 1.7% from the previous Sunday.
The number of ETH discussions last week was 5.11K, up 7.53% from the previous week; the price last Sunday was $3,699, up 6% from the previous Sunday.
TON had 785 discussions last week, down 1.1% from the previous week; the price last Sunday was $6.63, up 20% from the previous Sunday.
From Ethereum’s smart contracts to EOS’s public chain, to Layer 2, cross-chain, metaverse, and blockchain games, technology continues to advance and new concepts emerge, but with the transformation of airdrops to a points system and the increase in high-threshold activities, retail investors may be confused, limiting the growth of new users. In contrast, the narrative of the Meme project is simple and direct, relying on shared cultural genes to build consensus without in-depth understanding of technical details. With the rise of Solana and the popularity of one-click coin issuance platforms such as Pump.fun, the difficulty of participating in the Meme project has decreased, and code vulnerabilities have been resolved, allowing core features such as cultural attributes, funds, and communities to play a more direct role.
The rise of Meme and the capital following
The above changes reveal two trends in the crypto community: on the one hand, new projects are becoming more and more complex, and the threshold for participation is getting higher and higher; on the other hand, Meme projects have lowered the threshold for participation through minimalism and professional division of labor. In a market with limited funds and users, the market balance seems to be tilting towards Meme projects.
As retail investors' interest in Meme coins grows, institutional investors are also turning their attention to this field. Wintermute, which is famous for its high hit rate of listing Meme coins, has been continuously increasing its holdings of NEIRO on Ethereum since September 6. As of October 15, Wintermute held approximately $10.52 million worth of PEPE, becoming its third largest holding token, and also held $3.48 million worth of NEIRO, becoming the market maker with the largest public holdings. There are three other market makers and a venture capital firm holding NEIRO_ETH tokens. Jump Trading also holds $1.2 million worth of SHIB.
From the perspective of capital, the motivation for investing in Meme coins is obvious. Compared with traditional value projects, venture capital (VC) requires a large initial investment and a long period of waiting for the project to be developed and operated. Meme coin investment is more direct. You can choose market-proven targets, hold tokens that do not need to be locked, and use capital advantages to operate, so as to realize cash at any time and high returns, which is more in line with the interests of capital.
Meme coin’s wealth-creating effects
Don’t understand the wealth-creating effect of Meme coin as a derogatory concept of brainless nouveau riche. This is the most neutral and eye-catching feature of Meme coin. It attracts capital and retail investors, and affects every participant in the crypto industry at a very fast speed.
Recently, LBank released a poster on social media showing the recent gains of Meme coins. The poster shows that since GOAT was first launched on the platform, its highest increase has reached an astonishing 10,599.20%, and the average increase of newly launched Meme coins is as high as 1,895.81%. Although the traditional track in the crypto field is skeptical of Meme coins, which makes some users frustrated, this has instead inspired them to seek social recognition and data support. Not only do they actively promote Meme coins in the community, but they also establish emotional connections with other like-minded people in the process.
Official data from LBank shows that in the third quarter, the platform launched more than 50 Meme coins, of which 28 increased by more than 200%, 14 increased by more than 500%, and 9 increased by more than 1,000%.
But it is also worth noting that some people make money while others lose it all, and smart investment in Meme coins is really important. A recent report released by CoinWire shows that two-thirds of the more than 1,500 Meme coins promoted by hundreds of KOLs are "dead", with a drop of more than 90%. In contrast, 64% of the tokens in the TOP25 holdings of Wintermute's market-making Meme coins have been listed on Binance, and the hit rate of this listing ratio is frighteningly high. PEPECOIN, NEIRO, GOAT, POPCAT, REKT, etc. are all its top holdings.
So to invest in Meme coins wisely, you need to know what drives the success of a meme that can grow a hundred or a thousand times.
The driving factors behind the 100-1000-fold growth
We can analyze the driving factors behind the success of a Meme coin from the following four aspects:
Emotional resonance evoked by the narrative content:
Meme coins convey emotions and stories through images, such as $Doge's affinity for dog lovers, $PEPE's sad little frog and sloth, which were popular emoticons and movie characters before becoming memes. In terms of emotional transmission, the narrative of Meme coins is simple and direct, easy for the public to understand and accept, similar to the (Three Body) evaluation that "every additional formula will reduce 10,000 viewers". Down-to-earth content is more likely to become popular, so it is easy to build a simple but pure mass base.
Macroeconomic and market environment:
The current bull market has indeed attracted many new investors, but they may be confused by complex technical concepts and have no idea where to start. Meme coins, with their simplicity and low price, provide opportunities that are easy to understand and participate in. The downward trend of the traditional economic cycle has also promoted the popularity of Meme coins, because the weakness of the traditional economy has reduced the public's desire to explore new technologies. Meme coins meet the market's needs with their low energy consumption and easy absorption characteristics.
KOL promotion and social media communication:
KOLs play a key role in the creation, issuance and promotion of Meme coins. Their speeches are highly inflammatory and can influence people's investment decisions. Community promotion is also an important part of Meme coin marketing. The interaction between KOLs and communities helps to form consensus and drive price bubbles.
Wealth creation effect and FOMO emotion:
The development of Meme coin benefits from its characteristics of creating a myth of wealth and the FOMO panic of missing opportunities. By pumping up the market and promoting stories of getting rich quickly, as well as the FOMO sentiment spread by the community, the Meme that is already ready to take off will be given a boost, bringing multiple buff effects, and often the price will soar all the way.
Combination of Meme and DeFi
The integration of Meme and DeFi has opened up new avenues, allowing users to play a more diversified role in the token economy, beyond pure market hype and speculation. Users can now actively participate in the Meme ecosystem through a variety of methods such as staking, mining, and liquidity support.
Staking mechanism: Meme holders have the opportunity to stake their tokens on DeFi platforms in exchange for rewards. These rewards may be presented in the form of additional Meme or other tokens, providing incentives for users to hold and actively participate in the Meme ecosystem.
Mining process: Mining usually involves lending out the Meme held through a smart contract in exchange for interest income. On Meme's DeFi platform, these lending activities facilitate a variety of activities such as trading and liquidity support, and users earn income for participating in these activities.
Liquidity support: Meme can also create liquidity pools, allowing users to put their Meme tokens into the pool for others to trade on decentralized exchanges. This process not only enables users to share transaction fees, but also contributes to improving the liquidity and transaction efficiency of the Meme coin market, and users can also receive corresponding rewards.
Conclusion
In summary, we can also see that the success of Meme Coin is not just hype, but the result of multiple factors. When exploring the future development of Meme Coin, we can look at its integration with DeFi with an open mind. This combination may provide Meme Coin holders with more diversified ways to participate, thus transcending simple market hype to a certain extent. This integration may indicate that Meme Coin is not just a short-term wealth-making tool, but has the potential to develop into a new economic model driven by the community. In the future, Meme Coin may continue to attract more innovation and capital, bringing new vitality and possibilities to the global economy.
Research Report
Investing involves risks. The project is for reference only. Please bear the risks at your own risk.
