Market maker DWF Labs released a 2024 Memecoin market report on February 2, which stated that the market value of Memecoin surged from US$20 billion at the beginning of 2024 to US$120 billion by the end of the year, an increase of up to 500%, and Become an emerging asset class that cannot be ignored in the digital economy.
Culture, technology and market psychology are intertwined, with a current market value of US$116.2 billion
DWF started by taking the earliest meme coin Dogecoin as an example, saying that Dogecoin challenged traditional cryptocurrencies in a playful and humorous way, and has now evolved into a market branch that attracts huge capital flows and institutional attention. It also stated that meme coins are not only an investment tool, but also a cultural symbol.
DWF adds that the astonishing growth of meme coins in 2024 also reflects a new perspective among the younger generation regarding investment, wealth creation, and community participation. In the digital economy era, 'consensus' and 'community influence' are replacing traditional asset fundamentals and becoming new standards for value assessment. As of January 3, the current market capitalization of meme coins has reached $116.2 billion, which is quite substantial.
As of January 3, the total market capitalization of meme coins is $116.2 billion, which is quite substantial. Blockchain lowers the entry barriers to the capital market.
DWF states that in traditional financial markets, companies need to go through several years of fundraising, complex regulatory reviews, and high costs to enter the public market; however, the emergence of blockchain technology has broken this framework. DWF further stated that creators can quickly issue trading assets at low costs using smart contracts without relying on intermediaries. The value of assets begins to be dominated by 'community recognition' and 'culture,' rather than traditional financial standards. Meme coins are thriving in this technological and cultural context, making traditional financial metrics seem less important.
The value creation process of the cryptocurrency market compared to traditional markets. From community consensus to value creation.
The following are the four major stages of the meme coin creation lifecycle according to DWF:
Issuance: With the help of issuance platforms like Pump.fun or Gra.fun, anyone can quickly issue meme coins without complicated technology or large amounts of capital, completing contract deployment and liquidity allocation in just one hour.
Community Capital Formation: After issuance, creators use community platforms like Twitter, Telegram, and Discord to build communities, attracting enthusiasts to join through narrative dissemination and interaction, forming a strong community culture and influence.
DeFi Trading: Meme coins provide liquidity through DeFi platforms, allowing users to trade at any time and use market data and community reactions as momentum to drive price growth.
Value Creation and Distribution: The participation and contributions of community members are the main driving force behind the development of meme coins, such as using meme marketing and creating diverse content to attract new users. Through their actions, meme coins can continue to grow without large capital or traditional advertising support.
Illustration of the four major stages of the meme creation lifecycle. The diversity and innovation of the meme coin market.
In summary, from Dogecoin to Shiba Inu and AI meme coins, the variety of related coin types is becoming increasingly diverse. Some are primarily for entertainment, while others incorporate practical features like AI to attract more investors' attention. DWF indicates that this trend of combining meme culture with practical applications shows that the market has entered a more mature stage, no longer just a product of community culture but a laboratory for innovative value models.
Overview of meme coin types.
(2024 Crypto Topic: Meme coin market capitalization of $112.7 billion ranks first, AI-related tokens fall to second place)
This article 'Meme Coin Surprise! DWF Labs' total market capitalization soared to $120 billion in 2024, with community recognition and culture dominating value' first appeared in Chain News ABMedia.
