As 2024 draws to a close, every Web3 crypto person has their own annual keyword. For me, this year's keywords should be 'highlight' and 'lost'. Solana rebounded strongly after the FTX collapse; Base's user growth surged; the TON ecosystem matrix attracted attention; the AI Agent track is considered the focus of 2025; unfortunately, BTC's ecological construction and coin price have far from met the market expectations for 2024, and ETH is sluggish. Nevertheless, the explosion of the MEME track and new assets this year has activated a massive frenzy of on-chain liquidity, running through most of 2024.

2024 - New MEME assets are 'retail self-redemption'.

Trends are undergoing profound changes: 'capital narratives are gradually losing effectiveness'. With the evolution of Web3 sovereignty awareness, a series of new launch protocols have emerged, such as Friend.tech, Pump.Fun, Four.meme, Moonshot, Flap, We.RICH, etc., triggering a new Paradigm Shift. These protocols lower the participation threshold, allowing everyone to become project parties, thereby bringing more opportunities and choices.

This wave of trends has not only spawned a large number of 'highlight' market capitalization projects (such as: Wif, Bonk, Bome, Mew, etc.), but has also made MEME-type assets the main theme running through most of 2024, sweeping the market with exponential growth. MEME assets are gradually becoming the core carrier of decentralized value flow from the projection of emotions and culture.

However, the increase in choices is accompanied by a loss of direction. Countless hundredfold tokens and new assets with million-dollar market cap opportunities make it easier for us to 'get lost' amidst information overload, not only missing potential wealth opportunities but also neglecting deep thinking about the core value assets of Web3. This 'noise effect' causes the market to easily indulge in short-term speculation while ignoring the key to the long-term sustainable development of the ecology: value creation and strengthening user consensus.

Behind the 'highlight' market capitalization of the MEME track is 'Bonding Curves' as the driving force.

Bonding Curve is an algorithm mechanism of AMM automated market maker. Most people encounter AMM in the traditional market-making mechanism of Uniswap (x⋅y=k), where K is a constant value that ensures the supply of two tokens and their prices always achieve value equivalence. Traditional AMMs need to establish pools to obtain supply relationship parameters, while the Bonding Curve mechanisms used by PumpFun, Friend.teach, Four.meme, Moonshot, Flap do not require establishing pools, have no liquidity crises, do not have impermanent loss, and do not even need to worry about liquidity providers draining pools and running away, allowing for low-cost asset issuance.

More importantly, Bonding Curves provide greater efficiency, flexibility, and combinability, allowing for diversified custom supply and value relationships through linear, logarithmic, exponential, inverse, mixed curves, etc. For example: Friend.teach (y = x^2 / 16000) basically determines the appreciation space of minted tokens.

In the pricing system of Pump.FUN, there is a pre-virtual pool called virtualSolReserves. This virtual pool initially contains 30 SOL and 1,073,000,191 tokens, and its pricing formula follows the constant product rule of x * y = k. After data fitting calculations, the initial k value is 32,190,005,730, and the initial price per token is about 0.000000028 SOL.

The pricing formula is as follows: y=1073000191−3219000573030+xy = 1073000191 - \frac{32190005730}{30 + x}y=1073000191−30+x32190005730

(The calculation content and images of Pump.FUN's formula come from Binance Square 'Random Madman Chen Nezha' https://www.binance.com/zh-CN/square/post/15600492237666)

https://www.binance.com/zh-CN/square/post/15600492237666)

Essentially, Pump.FUN still adheres to the pricing principle of x * y = k, which is also the reason why, after completing $69,000, that is, when the deposited SOL amount reached 85, liquidity can be seamlessly added to Ratdium, then opening the next round of peak sprint.

Coincidentally, Four.meme, backed by Binance, also implements a similar process through Bonding Curves. As long as the market cap reaches $44,444, the platform will add badge display, and when the Bounding curve reaches 100%, it will be launched on PancakeSwap. However, Four.meme, under Binance's 'resource moat', provides more community assets with KOL matrices and promotional resources plus point airdrop expectations, once again enhancing user stickiness.

The duality of Bonding Curves: casino tool or value engine?

Whether it's Pump.FUN or Four.meme, the process of achieving market capitalization standards to migrate to DEX for liquidity relies on the predictability of Bonding Curves, so that most market investors can clearly understand the asset's pressure points, which indeed feels a bit like a 'zero-sum game', in other words, 'who runs faster'.

But I believe: the essence of finance is cyclicality. There are no assets that rise forever, and Bonding Curves are only part of the tool. They make the market more transparent and calculable while forcing project parties to think about the full-chain operation from asset issuance to ecological application to value realization.

Although many launch protocols have already created very high protocol revenues, with Pump.FUN's total revenue exceeding 300 million USD, the survival rate of tokens launched through it is only 1.3%. Perhaps we should think more about where these assets should ultimately go? What financial value should they play?

2025 is the best time for innovation in the Web3 bull market.

The author believes that every new asset issuance comes with tremendous wealth opportunities. The birth of BTC ushered in the era of digital assets, followed by a constant stream of innovations such as altcoins, NFTs, and DeFi, creating countless wealth myths. However, the sustainable development of assets is the key to long-term success. Now, the sixth digital asset revolution - Bonding Curve has arrived.

The future applications of Bonding Curves will no longer be limited to asset issuance and trading but will extend to new asset combinations, lending optimization, liquidity management, and capital efficiency enhancement. Just as the previous DeFi bull market stimulated the comprehensive prosperity of the industry, we are expected to witness a new battlefield of DeFi led by Bonding Curves in 2025.