As of December 1st, the data statistics for BTC, ETH, and TON on the TrendX platform are as follows:
The discussion frequency for BTC last week was 14.31K, down 26.18% from the previous week; the price last Sunday was $96,743, down 1.7% from the Sunday before.
The discussion frequency for ETH last week was 5.11K, up 7.53% from the previous week; the price last Sunday was $3,699, up 6% from the Sunday before.
The discussion frequency for TON last week was 785, down 1.1% from the previous week; the price last Sunday was $6.63, up 20% from the Sunday before.
From Ethereum's smart contracts to EOS's public chains, and then to Layer 2, cross-chain, metaverse, and chain games, technology continues to advance with new concepts emerging. However, as airdrops shift to point systems and the increase in high-threshold activities, retail investors may feel confused, limiting the growth of new users. In contrast, the narrative style of Meme projects is simple and direct, relying on shared cultural genes to build consensus without requiring a deep understanding of technical details. With the rise of Solana and the popularity of one-click token issuance platforms like Pump.fun, the participation difficulty in Meme projects has decreased, and code vulnerability issues have been resolved, allowing cultural attributes, capital, and community to play a more direct role.
The rise of Meme and capital following
The aforementioned changes reveal two trends in the crypto community: on one hand, new projects are becoming increasingly complex with higher participation thresholds; on the other hand, Meme projects have lowered the barriers to entry through minimalism and specialized division of labor. In a market with limited funds and users, the market balance seems to be shifting towards Meme projects.
As retail interest in Meme coins grows, institutional investors are also beginning to turn their attention to this area. Wintermute, known for its high hit rate in Meme coins, has been continuously increasing its holdings in NEIRO on Ethereum since September 6, and by October 15, Wintermute held approximately $10.52 million worth of PEPE, becoming its third-largest holding token, while also holding $3.48 million worth of NEIRO, making it the market maker with the most public holdings. There are also three other market makers and one venture capital firm holding NEIRO_ETH tokens. Jump Trading also holds $1.2 million worth of SHIB.
From a capital perspective, the motives for investing in Meme coins are evident. Compared to traditional value projects, venture capital (VC) requires a large initial investment and waits for long periods of project development and operation. In contrast, investing in Meme coins is more direct; investors can choose market-validated targets, hold tokens without locking them, and utilize capital advantages to operate, achieving liquidity and high returns at any time, which better aligns with capital's pursuit of interests.
The wealth creation effect characteristics of Meme coins
Do not interpret the wealth creation effect of Meme coins as a derogatory concept of brainless nouveau riche; this is one of the most striking neutral characteristics of Meme coins, which attracts capital and draws retail investors in droves, rapidly affecting every participant in the crypto industry.
Recently, LBank released a poster on social media showcasing the recent increase in Meme coins. The poster shows that since GOAT was first listed on the platform, its highest increase reached an astonishing 10,599.20%, while newly listed Meme coins also averaged an increase of 1,895.81%. Despite the traditional sectors of the crypto field expressing skepticism towards Meme coins, causing some users to feel frustrated, this has instead spurred their motivation to seek social recognition and data support. They not only actively promote Meme coins within the community but also build emotional connections with like-minded individuals in the process.
Official data from LBank shows that in the third quarter, the platform launched over 50 Meme coins, of which 28 had increases exceeding 200%, 14 had increases exceeding 500%, and 9 had increases exceeding 1,000%.
However, it is also worth noting that while some people make money, others lose everything; smart investment in Meme coins is truly important. Recently, a report released by CoinWire indicated that among over 1,500 Meme coins promoted by hundreds of KOLs, two-thirds are 'dead', with declines exceeding 90%. In contrast, 64% of the tokens in Wintermute's TOP 25 Meme coin holdings have been listed on Binance, an astonishing hit rate, with tokens such as PEPECOIN, NEIRO, GOAT, POPCAT, and REKT being among its top holdings.
So to smartly invest in Meme coins, one must understand what drives the success of a hundred-fold or thousand-fold Meme.
Driving factors behind a hundred-fold or thousand-fold increase
We can analyze the driving factors behind a Meme coin's success from the following four aspects:
Emotional resonance triggered by narrative content:
Meme coins convey emotions and stories through imagery, such as the affinity of $Doge for dog lovers, the sad little frog $PEPE, and sloths, which were already popular memes and movie characters before becoming Memes. In terms of emotional transmission, the narrative of Meme coins is simple and direct, easily understood and accepted by the public, similar to the evaluation in 'The Three-Body Problem': 'For every additional formula, there will be a thousand fewer viewers'; grounded content is more likely to go viral, making it easy to build a simple yet pure grassroots foundation.
Macroeconomic and market environment:
The current bull market has indeed attracted many new investors, but they may feel confused by complex technical concepts, whereas Meme coins, with their simplicity and low prices, provide an opportunity that is easy to understand and participate in. Additionally, the downturn of the traditional economic cycle has also promoted the popularity of Meme coins, as the weakness in the traditional economy has led to a decreased desire for exploration of new technology, and Meme coins, with their low energy consumption and easy absorption characteristics, meet market demand.
Promotion by KOLs and community dissemination:
KOLs play a key role in the creation, issuance, and promotion of Meme coins. Their statements are highly provocative and can influence people's investment decisions. Community promotion is also an important component of Meme coin marketing, and the interaction between KOLs and the community helps form consensus and drive price bubbles.
Wealth creation effects and FOMO emotions:
The development of Meme coins benefits from the characteristics of their wealth creation myth and the FOMO panic of missed opportunities. By rapidly promoting stories of quick riches through pump and publicity, along with the FOMO emotions spread within the community, Meme coins can catch the rising wind and experience multiple buffs, often resulting in soaring prices.
The combination of Meme and DeFi
The fusion of Meme and DeFi opens up novel pathways, allowing users to play more diverse roles in the token economy, moving beyond simple market speculation and trading behaviors. Users can now actively participate in the Meme ecosystem through various means such as staking, mining, and liquidity support.
Staking mechanism: Holders of Meme have the opportunity to stake their tokens on DeFi platforms in exchange for rewards. These rewards may come in the form of additional Meme or other tokens, providing incentives for users to hold and actively engage in the Meme ecosystem.
Mining process: Mining typically involves lending out held Meme through smart contracts in exchange for interest income. On Meme's DeFi platform, these lending activities facilitate various operations such as trading and liquidity support, allowing users to earn profits by participating in these activities.
Liquidity support: Meme can also create liquidity pools, allowing users to put their held Meme tokens into the pool for others to trade on decentralized exchanges. This process not only allows users to share transaction fees but also contributes to improving the liquidity and trading efficiency of the Meme coin market, thereby enabling users to earn corresponding rewards.
Conclusion
In summary, we can also see that the success of Meme coins is not just hype but a result of multiple factors working together. When discussing the future development of Meme coins, we can approach their integration with DeFi with an open mind, as this combination may provide more diversified participation avenues for Meme coin holders and, to some extent, transcend simple market speculation. This integration may indicate that Meme coins are not just short-term wealth tools but have the potential to evolve into a community-driven new economic model. In the future, Meme coins may continue to attract more innovation and capital, bringing new vitality and possibilities to the global economy.
Research report
