Author: shaofaye123, Foresight News
Memecoins are an unavoidable theme in 2024. Classic meme coins like Dogecoin and Shiba Inu averaged over 5 times in growth in 2024, while emerging meme coins like MooDeng and PNUT saw investment returns soaring to hundreds of times. The oversupply of tokens and high circulation valuation of VC coins have made this bull market a situation where no one wants to take over. Therefore, Memecoins are exceptionally active in this round, becoming indicators of on-chain liquidity, whistleblowers of new narratives, and thermometers of market sentiment.
This year, we have witnessed the process of Memecoins transitioning from fervent speculation to gradually entering mainstream culture and consensus effects, leading to a significant transfer of wealth. Throughout this process, innovative issuance methods and rapidly changing asset types, alongside mainstream acceptance and adoption, have propelled its vigorous development. Each transformation hides opportunities for hundredfold or thousandfold wealth. Reflecting on the 2024 Memecoin supercycle, let us witness the changes and opportunities of this year together.
Infrastructure is increasingly improving
The prosperity of this round of the Memecoin supercycle cannot be separated from the continuous improvement of infrastructure. Whether it is 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 space.
Innovation in issuance methods
Traditional Memecoin issuance methods are similar to ordinary tokens, while Memecoins, as part of the attention economy, experience rapid changes in market hotspots. However, the current asset issuance cycle is lengthy and complex; user preferences and speculative rhythms across major public chains differ. These factors make it difficult to concentrate market attention and liquidity, making it challenging to rapidly boost asset prices in the short term.
PUMP.FUN: The core engine of the supercycle
This year, the money influx triggered by BOME and SLERF changed their issuance methods to some extent, attracting market attention. However, RUGs have frequently emerged, and the aforementioned problems remain unresolved. The emergence of PUMP.FUN has effectively addressed this situation, shortening the Memecoin issuance cycle, allowing funds to circulate continuously and users to gradually concentrate, laying the foundation for the start of the Memecoin supercycle.
PUMP.FUN was created by founder Alon in January 2024, but it initially had very 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 supercycle, optimizing asset issuance methods is its core advantage. It allows users to create tokens without any technical knowledge (after the August update, the $2 creation fee is no longer required), and the fair in-platform fundraising combined with a reasonable price curve (Bonding Curve) has successfully lowered the cost of asset issuance and increased the speed of asset issuance, effectively solving the problem of rapidly changing market hotspots and the difficulty of concentrating funds.
Moreover, the success of PUMP.FUN is not only attributed to its mechanism innovation. Its user positioning and product design are also quite excellent. From the user side, it addresses the real problems faced by most people in the Web3 market: 'Users want a simpler, quicker, and lower-cost way to obtain higher multiples of returns.' From the product side, it is one of the few projects with a complete business closed loop, with clear and traceable profit sources (a 1% trading fee before launching on Raydium, and a 'listing fee' of 6 SOL during the launch process on Raydium).
Currently, according to Dune data, as of December 23, PUMP.FUN has deployed nearly 5 million Memecoins since its launch, with daily active users reaching 300,000 and new addresses added daily numbering 170,000. According to DefiLlama data, PUMP.FUN's protocol income has reached 94 million dollars in the last 30 days, with cumulative protocol income nearing 300 million dollars.
Frequent emergence of PUMP.FUN imitations, with continuous minor innovations
PUMP.FUN has initiated this round of the Memecoin supercycle, and the continuous emergence of imitations has made the supercycle even more prosperous.
Sun.pump: Memecoin Launchpad becomes the fifth standard feature of public chains
A large influx of capital and market attention has led various public chains to launch PUMP.FUN imitations; for a time, Memecoin Launchpad has become the fifth standard feature of public chains.
Major public chain ecosystems have started to support Memecoins across the upstream and downstream. On BSC, platforms like Four.meme and Flap attract market attention by constantly launching activities and collaborations; on the Base chain, issuing platforms like Ape.Store, Rug.fun, and Trugly.meme engage users through various gameplay; on BTC Layer 2, many imitation projects have emerged, such as LnPUMP.FUN, SatsPUMP.FUN, and CPUMP.FUN. Moreover, Sun.pump on the Tron chain has 'single-handedly' driven the entire Tron chain back to 'prosperity'. In a short time, hot money surged into the Tron chain, causing its on-chain Gas to skyrocket, and the long-dormant price of TRX reached a three-year high. However, after that, TRX fell sharply, currently priced at 0.24 USDT.
You can see him build high-rise buildings, and then watch them collapse. Memecoins, as a quick way to attract users, can bring a wave of dividends to public chains, but how to sustain ecological development is worth pondering.
MakeNow.Meme: Optimization of market-making models
MakeNow.Meme is no longer in vogue, but it attracted widespread attention when it was first launched. On its first day, it issued over 2,600 Memecoins, yielding over 230+ SOL. Its issuance mechanism, compared to PUMP.FUN, is not only a further simplification of asset issuance methods but also provides new directions for market-making models.
Further simplification of asset issuance methods - On Twitter, users can post tweets in a fixed format (starting with a $ symbol and stock code, followed by a token description/video/image, etc.) and @ the official account, waiting for the official account to reply with the token contract address in the comments.
Optimization of market-making models - Although a fair launch method seems to require everyone to scan the chain to obtain contracts first, in reality, KOLs and project parties may privately reach agreements with the platform to pre-emptively buy low-priced chips.
According to Dune data, MakeNow.Meme gradually faded away just a week after its creation, heading towards obscurity. This perhaps confirms that the core narrative and main logic of Memecoins still revolves around the pursuit of fairness.
Moonshot: Natural traffic backed by DEX Screener
Moonshot was developed by DEX Screener around June this year. Although it is backed by DEX Screener and even embedded within the platform, its data remains sparse compared to PUMP.FUN. Despite having natural traffic support, it seems to have failed to adequately capture and convert that traffic, not displaying MetaData before launch and lacking a simple way to check launch history, thereby lacking transparency in functionality.
Its performance data after launch was relatively mediocre. This may indicate that while the traffic entry point always exists, the key is how to convert users.
Optimization of user experience
In addition to the innovation in asset issuance methods and capital flow, optimization of user experience is also a reason for the large-scale explosion of Memecoins in this round.
TG Bot: Optimization for Web3 users
Behind this round of the Memecoin supercycle lies the development of tools and on-chain robots, whose functions are rapidly updated through continuous iteration. From sniper tools, regular investments, to safety checks and correlation analysis, powerful tools and robots safeguard users' on-chain gold mining, driving Memecoins towards the public from the demand side.
During this period, tools for Memecoin trading expanded from mobile to web platforms. Targeting different segmented needs, there are professional trading websites compatible with multiple chains, such as gmgn.ai, Bullx, and Photon, as well as convenient TG bots like Banana Gun, Tojan, and Bonkbot. These service tools specifically targeting Memecoin trading have transitioned from a broad approach to a deeper one, with tools for wallet analysis, Twitter monitoring, and security testing becoming increasingly refined, and the product business models being validated. In this process, the number of TG Bot users has also been steadily increasing, with daily active users exceeding 140,000 and daily trading volumes reaching nearly 500 million dollars. Although there is still a long way to go compared to on-chain DEXs, this niche area remains a blue ocean due to the influence of the Memecoin supercycle.
MoonShot: Optimization for Web2 users
Apart from Web3 users, Memecoins are also the most direct way for Web2 users to enter and understand Web3. However, there are still many issues in Memecoin trading, such as high security risks, a multitude of scattered platforms, and difficulty in obtaining Gas. The MoonShot project, involving the PUMP.FUN incubation team Alliance DAO, has addressed 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 brings more new users and new funds to the Solana ecosystem, linking on-chain Memecoins with off-chain capital. However, currently, as the wealth effect weakens, the activity of MoonShot users is gradually decreasing. Effectively converting Web2 users remains a persistent issue in the crypto space.
Various narratives quickly evolve and change
Memecoins, as the best representation of the attention economy phenomenon in the crypto market, are seeing a trend of diversified narrative development under the market boom of 2024. Reviewing the various types of speculative projects in the past, the narrative themes of Memecoins differ. However, each type behind it represents specific market trends, community dynamics, and capital operation modes. Based on past patterns and characteristics, we can roughly categorize them into four types: event-derived Memecoins, community-driven IP Memecoins, celebrity-effect-dominated concept Memecoins, and cross-domain multidimensional emerging Memecoins. Various types influence each other and are not entirely independent.
Memecoins derived from events
Memecoins triggered by sudden events often gather extremely high attention right from the start; the flow of attention and funds can quickly drive up the prices of Memecoin assets. The surge from occurrence to increase is often sudden and difficult to replicate, characterized by rapid bursts and high short-term multiples but lacking sustainability, requiring other drivers after attention fades. Tokens like BOME, SLERF, FIGHT, and BAN can all be categorized as Memecoins driven by events.
BOME (BOOK OF MEME) is a presale project initiated by Pepe meme artist Darkfarm, raising over 10,000 SOL in presale funds, and due to widespread attention, the token's trading volume exceeded 200 million dollars upon launch. Three days after going live on Binance, its market cap peaked over 1 billion dollars; SLERF, which adopted a similar presale mechanism, experienced a price spiral increase due to unexpected events and subsequent dissemination.
However, if the Meme stemming from a sudden event does not gain sustained attention from the market, the price will converge and decrease. The market cap of the Fight token, derived from the slogan after Trump's assassination, once exceeded 80 million dollars, but now, lacking attention, it has fallen by over 90%; the art concept Meme coin BAN, issued by Sotheby's vice president Michael Bouhanna, saw a drop of 85% from its peak after going live on Binance.
Community-driven IP Memecoin
IP-type Memecoins often have strong consensus, forming communities that have a long fermentation period. After a prolonged cycle, these community-driven IP Memes show strong resilience amid fluctuations in 2024. Their journey from emergence to new highs may involve a lengthy consolidation period, characterized by high community consensus, strong CULT qualities, or demonstrated resilience during repeated declines and surges. Tokens like the Cult series POPCAT, SPX, APU, and others like MEW, NEIRO, and MANEKI have already formed established IP.
MEW (cat in a dog's world) is a brave cat fighting against dogs. The token was launched in March this year and, as a pioneer in the 'cat track', reached a maximum market cap of 1 billion dollars. Subsequently, another IP, Maneki (Japanese lucky cat), also referenced its mechanism of 90% liquidity pool and 10% community distribution, leading to a brief FOMO. Another example of a community IP type Memecoin is Neiro, named after the rescue dog adopted by the owner of the late Dogecoin prototype, Kabosu. The token reached nearly 50 million dollars in market cap just two days after launch, with its price fluctuating repeatedly around on-chain issues and case sensitivity. The community finally achieved victory for the lowercase Neiro, with a maximum market cap of 1.2 billion dollars. Additionally, Murad, a rising star of the supercycle, has set the token screening standard of existing for at least six months and experiencing at least two 70% drops. Therefore, while SPX's temporary surge benefited from its influence, the importance of community IP is the reason for its rebirth amidst repeated declines.
Concept Memecoins dominated by celebrity effects
The performance of Memecoins is often linked to key figures; celebrities can promote related ideas through specific Memecoins, and tokens can further gain attention due to celebrity effects. Their core feature is that the price fluctuations correlate with the size of the celebrity's influence and the strength of the binding relationship. Tokens like DOGE, PNUT, TERMINUS, led by Musk, and others like JENNER and MOTHER belong to this category.
The behavior and impact of celebrities issuing tokens have changed in this round of the Memecoin supercycle due to the emergence of Pump.fun. The pace is faster, the multiples are higher, attracting many Web 2 celebrities to participate. The JENNER token developed by Caitlyn Jenner, a member of the Kardashian family, surged by 160 times overnight; the meme coin MOTHER, mentioned in a tweet by well-known American female rapper Iggy Azalea, exploded thirty times in just two minutes, reaching a market value of over 200 million dollars at its peak. Concept coins related to Elon Musk are also 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), related tokens on the chain experience short-term increases.
Cross-domain multidimensional emerging Memecoins
This round of Memecoin's supercycle speculation is no longer limited to native Web3 content but spans multiple fields, covering a broader range of topics and themes. Within various sectors, there are a wide variety of speculative targets, rapidly attracting attention from multiple fields. From TikTok traffic to new AI technologies, to DeSci (Decentralized Science), physics, and other cutting-edge disciplines, the speculative momentum of Memecoins has spread rapidly, expanding into new fields and showing trends of cross-domain integration. Memecoins seem to have become a testing ground for emerging technologies and an experimental field for unproven tracks. The core characteristics of this type of Memecoin are novel narratives and a broad outreach. Tokens like MOODENG, PESTO, CHILLGUY, GOAT, ACT, VIRTUAL, AIXBT, RIF, and URO belong to this category.
Moo Deng is a baby hippo born in a Thai zoo, whose meme-like expressions have made it a darling on social media platforms like TikTok and Instagram, ultimately becoming the annual meme selected by Twitter. The Moo Deng token on Solana once reached a market cap of 700 million dollars and successfully listed on Coinbase as the smallest Memecoin in terms of market cap, triggering demand for meme speculation targeting the Web 2 sector. After this, tokens like PESTO and CHILLGUY also garnered widespread attention due to their strong Web 2 traffic, with their market caps once exceeding 500 million dollars.
Subsequently, speculation around AI agents has also become fervent. GOAT, which launched in June this year, is an AI Bot—Truth Terminal (@truth_terminal)—that saw its market cap surge over 1 billion dollars in a short period. Following that, AI Memecoins like ACT and ELIZA quickly captured the attention of on-chain players, while applications related to AI agents, such as ai16z, zerebro, virtual, and aixbt, gradually developed into an ecosystem. Later, Binance announced its investment in BIO, bringing DeSci (Decentralized Science) into the public eye, and tokens RIF and URO from the Pump.Science platform began a new round of speculation, with their market cap peaking over 200 million dollars.
Mainstream acceptance and adoption
Memecoins have transitioned from initially marginalized assets to being widely regarded by institutions and investors, with their user base continuing to grow and capital inflows increasing, gradually gaining recognition and adoption by the mainstream market.
In terms of capital inflow, market liquidity is clear and traceable. Many institutions have begun allocating Memecoins; major exchanges have been listing Memecoins one after another; market makers are actively hoarding Memecoins. As of December 23, 2024, the overall market cap of Memecoins has risen to 230 billion dollars and is on a continuous upward trend. According to a report released by Bybit in June, institutional investors increased their spot holdings by nearly 300 million dollars in the first half of the year. Almost all crypto exchanges have listed various Memecoins; Binance has cumulatively listed over 20 Memecoins (including futures and spot) since 2024, with 80% of the tokens experiencing significant market cap growth after being listed on Binance. Five crypto market makers, including Wintermute, GSR Markets, Auros Global, B2C2 Group, and Cumberland DRW, hold Memecoins valued at over 100 million dollars.
From the perspective of user growth, there has been a significant shift in attitude. In the first half of the year, A16Z was still debating value coins, but they began participating in speculation, unexpectedly giving rise to the first AI Memecoin, GOAT. Vitalik Buterin also expressed his outlook on the future of Memecoins, participating in MooDeng's promotion and charitable work. A partner at Pantera publicly acknowledged Memecoins, stating that they are the simplest way for the next generation to experience the latest DeFi applications and bring them into Web3. Furthermore, an increasing number of Web2 users are starting to recognize the value of Memecoins; DeSci's scientific assistance experiments, Dogecoin's ocean garbage cleanup plan, and NOT's social tipping and red envelope functions have all created fertile ground for Web2 users to understand and accept Memecoins. According to statistics, from the beginning to the end of 2024, the number of global Memecoin users has surpassed 50 million and continues to grow.
Conclusion
BTC, the largest meme coin from the perspective of Web2, has surpassed $100,000, proving its market value. As an early participant in Memecoins, are they merely gamblers seeking quick wealth, or forward-thinking investors? What will the future hold for Memecoins? Will they fade into obscurity after marginalization or gradually develop and enter the mainstream?
Cycles alternate, time tests truth, and the answers are written in the future.
