Author: shaofaye123
Memecoins are an unavoidable theme in 2024, with classic meme coins like Dogecoin and Shiba Inu averaging over five times their increase in 2024, while emerging meme coins like MooDeng and PNUT have seen investment returns as high as hundreds of times. The oversupply of tokens and the high circulation of highly valued VC coins have made this bull market a unique one with no overlap. Thus, Memecoins have been exceptionally active in this round, becoming indicators of on-chain liquidity, whistleblowers of new narratives, and thermometers of market sentiment.
This year we witnessed the process of Memecoins transitioning from fervent speculation to gradually entering mainstream culture and consensus effects, marking a significant transfer of wealth. During this process, issuance methods have continuously innovated, asset types have rapidly changed, and mainstream acceptance and adoption have fueled their vigorous growth. Each transformation hides opportunities for extraordinary wealth. Reflecting on the 2024 Memecoin supercycle, let us witness the transformations and opportunities of this year together.
Infrastructure is increasingly improved
The prosperity of this round of Memecoin supercycle is inseparable from the continuous improvement of infrastructure. Whether it is the innovation of B-end underlying issuance methods or the optimization of C-end user experience, both have provided conditions for the rapid inflow of funds and user expansion in Memecoins.
Innovation in issuance methods
Traditional Memecoin issuance methods are similar to ordinary tokens, while Memecoins, as attention economy assets, have rapidly changing market hotspots. However, the current asset issuance cycle is long and complex, with user preferences and speculation rhythms varying across major public chains. This makes it difficult for market attention and liquidity to concentrate, and achieving rapid multiple spikes in asset prices within a short period is challenging.
PUMP.FUN: The core engine of the supercycle
This year's wave of capital inflow triggered by BOME and SLERF, although its presale model changed its issuance methods to some extent and attracted market attention, has also seen frequent rug pulls, and the aforementioned issues remain unresolved. The emergence of PUMP.FUN has effectively addressed this situation, shortening the Memecoin issuance cycle, facilitating the continuous flow of funds, and gradually concentrating users, laying the foundation for the opening of the Memecoin supercycle.
PUMP.FUN was founded by Alon in January 2024, but initially had few followers and only began to enter the public eye gradually in April. It has since issued nearly 5 million Memecoins, accounting for nearly 70% of Solana's daily token issuance, making it 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 an August update, the $2 creation fee is no longer required). A fair fundraising mechanism + a reasonable pricing curve (Bonding Curve) successfully reduces asset issuance costs and speeds up asset issuance, effectively addressing the rapid shifts in Memecoin hotspots and the challenge of concentrated capital speculation in the current market.
Moreover, the success of PUMP.FUN lies not only in its innovative mechanisms. Its user positioning and product design are also quite excellent. From the user perspective, it addresses the real problem for most people in the Web3 market: 'Users want a simpler, faster, and lower-cost way to obtain higher multiples of returns.' From the product side, it is one of the few projects with a complete commercial closed loop, with clear and traceable profit sources. (Before going live on Raydium, the platform trading fee was 1%, with a 'listing fee' of 6 SOL during the packaging process.)
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 address numbers hitting 170,000. DefiLlama data shows that PUMP.FUN's protocol revenue in the last 30 days peaked at $94 million, with total cumulative protocol revenue nearing $300 million.
PUMP.FUN has seen numerous imitations with continuous minor innovations.
PUMP.FUN has initiated this round of Memecoin supercycle, and the continuous emergence of imitations has made the supercycle even more prosperous.
Sun.pump: Memecoin Launchpad becomes the fifth essential package for public chains
The influx of substantial capital and market attention has led various public chains to launch PUMP.FUN imitations, making Memecoin Launchpad a standard fifth package for public chains.
Major public chain ecosystems have begun to support Memecoins in various upstream and downstream manners. On BSC, platforms like Four.meme and Flap have attracted market attention by continuously launching activities and collaborations; on the Base chain, platforms such as Ape.Store, Rug.fun, and Trugly.meme have drawn users to participate through various gameplay; on the BTC Layer 2, numerous imitations have also emerged, such as LnPUMP.FUN, SatsPUMP.FUN, and CPUMP.FUN. The Sun.pump on the Tron chain has single-handedly revitalized the entire Tron chain. In a short time, hot money surged into the Tron chain, leading to skyrocketing on-chain Gas prices, while the long-dormant TRX price reached its highest point in nearly three years. However, TRX has since declined, with the current price dropping to 0.24 USDT.
Watching it rise high and then collapse. Memecoins, as a traffic entry that quickly attracts users, can bring a wave of dividends to public chains, but how to sustain ecological construction is worth pondering.
MakeNow.Meme: Optimization of market-making models
MakeNow.Meme may no longer be popular, but it sparked widespread attention when it was launched. It issued over 2,600 Memecoins in one day, generating revenues of 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 the asset issuance method — On Twitter, by following a fixed format (the tweet starts with a $ symbol and stock code, along with a token description/video/image), and mentioning the official account, users can wait for the official account to reply with the token contract address in the comments.
Optimization of market-making models — On the surface, a fair launch method requires everyone to scan the chain to obtain contracts at the first opportunity. However, in reality, KOLs and project parties might privately reach agreements with platforms to snipe and buy cheap chips in advance.
According to Dune data, MakeNow.Meme gradually faded into obscurity just a week after its creation, heading towards a fate of being ignored. This may confirm that the core narrative and primary logic of Memecoins still revolve around a pursuit of fairness.
Moonshot: Natural traffic backed by DEX Screener
MoonShot was developed around June this year by DEX Screener. Although it is backed by DEX Screener and even embedded within the platform, its data is still sparse compared to PUMP.FUN. Despite having natural traffic support, it seems unprepared for traffic capture and conversion, lacking transparency in displaying MetaData before launch and having a history that cannot be easily traced.
Its data performance after launch has been relatively average. This may indicate that while traffic entry points are consistently available, the key challenge lies in user conversion.
Optimization of user experience
In addition to innovation in asset issuance methods and capital flow, optimizing user experience is also a reason for this round of Memecoin's large-scale explosion.
TG Bot: Optimization for Web3 users
The current Memecoin supercycle is heavily reliant on the development of tools and on-chain bots, with their functionalities rapidly updating through continuous iterations. From sniping and dollar-cost averaging to security checks and correlation analysis, powerful tools and bots safeguard users' on-chain gold mining, driving Memecoins into the mainstream.
During this period, tools for Memecoin trading expanded from mobile to web platforms. Various specialized trading sites compatible with multiple chains, such as gmgn.ai, Bullx, and Photon, emerged, as well as convenient TG bots like Banana Gun, Tojan, and Bonkbot. These service tools specifically for Memecoin trading leveraged the Memecoin gold rush, transitioning from a broad approach to a more in-depth one. Wallet analysis, Twitter monitoring, security checks, and other tools are increasingly refined, and product business models have been validated. During this process, the number of TG Bot users has also been steadily increasing, with daily active users exceeding 140,000 and daily trading volumes approaching $500 million. Although there is still a long way to go compared to on-chain DEXs, this niche area remains a blue ocean under the influence of the Memecoin supercycle.
MoonShot: Optimization for Web2 users
In addition to Web3 users, Memecoins are also the most direct way for Web2 users to enter and understand Web3. However, Memecoin trading still faces numerous issues such as high security risks, platform dispersion, and difficulty in obtaining Gas. The MoonShot, incubated by the PUMP.FUN team and Alliance DAO, has solved 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 such as Apple Pay, credit cards, and PayPal. The simplification of the social login and fiat deposit process brings more new users and new funds to the Solana ecosystem, bridging the link between on-chain Memecoins and off-chain funds. However, currently, as the wealth effect diminishes, the activity of MoonShot users is gradually declining. How to effectively convert Web2 users remains a persistent issue in the crypto space.
Rapid turnover of narratives
As the asset most representative of the attention economy phenomenon in the crypto market, Memecoins are experiencing a trend of diverse narrative development amid the market boom in 2024. Reviewing various types of past speculative projects, the themes of Memecoin narratives differ significantly. Yet, each type represents specific market trends, community dynamics, and capital operation models. Based on past patterns and characteristics, we can roughly categorize them into four types: Derivative Memecoins triggered by events, Community-driven IP Memecoins, Celebrity effect-dominated concept Memecoins, and Emerging Memecoins across multiple dimensions.
Derivatives of Memecoins triggered by events
Memecoins triggered by sudden events often gather immense attention right from the start. The flow of traffic and funds during this attention phase can rapidly drive up the asset prices of Memecoins. The rise often occurs suddenly and is hard to replicate, characterized by a quick explosion and high short-term multiples but lacking sustainability. Once attention fades, new drivers must be sought. Targets like BOME, SLERF, FIGHT, and BAN can all be considered Memecoins driven by event-led speculation.
BOME (BOOK OF MEME) is a presale project initiated by Pepe Meme artist Darkfarm, raising over 10,000 SOL in its presale. Due to widespread attention, its token trading volume exceeded $200 million upon launch, and within three days of being listed on Binance, its market cap peaked above $1 billion. Subsequently, SLERF, which adopted a similar presale mechanism, experienced a spiraling price increase due to unexpected destruction of LP and airdrop reserve tokens by DEV, alongside the ensuing events and subsequent dissemination.
However, if the memes triggered by sudden events do not gain sustained market attention, their prices will converge and decrease. For instance, the market cap of the Fight token, derived from Trump’s assassination slogan, once exceeded $80 million but has since dropped over 90% due to lack of attention; the art concept meme coin BAN, issued by Sotheby’s vice president Michael Bouhanna, saw an 85% drop from its peak after listing on Binance.
Community-driven IP Memecoins
IP-type Memecoins often possess strong consensus, forming over long fermentation periods, which can lead to community formation after extended time cycles. These community-driven IP Memes have demonstrated strong resilience amidst fluctuations in 2024. The journey from appearance to new highs may involve prolonged consolidation, characterized by high community consensus, a strong CULT quality, or significant resilience amidst repeated ups and downs. Similar examples include the Cult series POPCAT, SPX, APU, and other established IPs like MEW, NEIRO, and MANEKI.
MEW (cat in a dogs world) is a brave cat that fights against dogs. After its token was launched in March this year, it became the pioneer of the 'cat track' with a peak market cap of $1 billion. Another IP, Maneki (Japanese lucky cat), later adopted a mechanism of 90% liquidity pool and 10% community allocation, triggering a brief FOMO. Another community-driven IP type Memecoin is Neiro, named after the rescue dog adopted by the owner of the deceased Dogecoin prototype, the Shiba Inu internet celebrity Kabosu. The token reached nearly $50 million in market cap within two days of its launch, with the token price fluctuating around issues related to the public chain and letter casing. Asset speculation continued from the chain to exchanges. The lowercase Neiro ultimately succeeded thanks to the community, with its market cap peaking at $1.2 billion. Additionally, Murad, a new star of the supercycle, uses a selection criterion of tokens that have existed for at least six months and have experienced at least two drops of 70%. Thus, although SPX's short-term rise benefited from its influence, the importance of community IP was the reason for its rebirth amidst repeated declines.
Concept Memecoins dominated by celebrity effects
The performance of Memecoins often correlates with key figures, where celebrities can promote related ideologies through specific Memecoins, and tokens can further gain traction due to celebrity effects. Their core characteristic is that the price volatility of the tokens is related to the magnitude of celebrity influence and the strength of the binding relationship. Examples include DOGE, PNUT, TERMINUS, and others like JENNER and MOTHER.
The actions and impacts of celebrities issuing coins in this round of Memecoin supercycle have also changed due to the emergence of Pump.fun. The pace is faster, multiples are higher, attracting many Web 2 celebrities to participate. Caitlyn Jenner, a member of the Kardashian family, developed the JENNER token which surged 160 times overnight; the famous American female rapper Iggy Azalea saw the meme coin MOTHER, mentioned in her tweet on X, explode thirtyfold in two minutes, reaching a market cap of over $200 million at its peak. The concept coins related to Musk are particularly focused on by 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.
Emerging Memecoins across multiple dimensions
The supercycle speculation of Memecoins in this round is no longer limited to native Web3 content but spans multiple fields, covering a broader range of topics and themes. Within each sector, the types of speculative targets are diverse and quickly form subcultures, attracting attention from multiple domains. From TikTok traffic to new AI technologies, to DeSci (decentralized science) and cutting-edge subjects in physics, the speculative momentum of Memecoins has rapidly spread, with the scope of involvement continually expanding, showing a trend of cross-border integration. Memecoins appear to have become testing grounds for emerging technologies and experimental fields for unverified tracks. This type of Memecoin is characterized by novel narratives and wide outreach. Examples include MOODENG, PESTO, CHILLGUY, GOAT, ACT, VIRTUAL, AIXBT, RIF, and URO.
Moo Deng is a baby hippo born in a Thai zoo, whose meme-worthy expressions made him a darling on social media platforms like TikTok and Instagram, ultimately becoming the annual meme awarded by Twitter. The market cap of the Moo Deng token on Solana once reached $700 million, successfully listing on Coinbase as the smallest Memecoin by market cap, sparking a demand for meme speculation in the Web 2 sector. Following this, the PESTO and CHILLGUY tokens also garnered widespread attention due to their strong Web 2 traffic, with their market caps temporarily surpassing $500 million.
Subsequently, speculation around AI agents also heated up. GOAT comes from the AI Bot launched in June this year - Truth Terminal (@truth_terminal), whose market cap surged over $1 billion in a short period. Following this, AI Memecoins like ACT and ELIZA quickly captured the minds of on-chain players, and applications related to AI Agents, such as ai16z, zerebro, virtual, and aixbt, gradually developed into an ecosystem. After that, Binance announced its investment in BIO, bringing DeSci (decentralized science) into the public eye, and tokens RIF and URO within the Pump.Science platform, which combines experiments, began a new round of speculation, with market caps exceeding $200 million at their peak.
Mainstream acceptance and adoption
Memecoins have transitioned from initially marginalized assets to being widely recognized by institutions and investors, with their user base continuously growing and capital inflow increasing, gradually gaining recognition and adoption in the mainstream market.
From the perspective of capital inflow, market liquidity is clearly traceable. Numerous institutions have begun to allocate towards Memecoins; various exchanges have launched Memecoins; market makers are actively hoarding Memecoins. As of December 23, 2024, the overall market cap of Memecoins has climbed to $230 billion, with a continuously growing trend. According to a report released by Bybit in June, institutional investors increased their spot positions by nearly $300 million in the first half of the year. Almost all crypto exchanges have listed multiple Memecoins; Binance has listed over 20 Memecoins since 2024 (including futures and spot), with 80% of tokens seeing significant market cap growth after being listed. Five crypto market makers, including Wintermute, GSR Markets, Auros Global, B2C2 Group, and Cumberland DRW, hold Memecoins valued at over $100 million.
From the perspective of user growth, the first significant change is the shift in attitude. In the first half of the year, A16Z was still debating value coins, but it began to participate in speculation, unexpectedly giving birth to the first AI Memecoin, GOAT. Vitalik Buterin has also made predictions about the future of Memecoins, participating in the promotion and charity work of MooDeng. Pantera partners have also publicly expressed their recognition of Memecoins, considering them the simplest way for the next generation to experience the latest DeFi applications and introduce them into Web3. Moreover, an increasing number of Web2 users are beginning to recognize the value of Memecoins. The scientific assistance experiments of DeSci, the Dogecoin ocean waste cleanup plan, and NOT as social tipping and red envelope functions have all created a fertile ground for Web2 users to understand and accept Memecoins. According to statistics, from the beginning of 2024 to the end of the year, the number of global Memecoin users has surpassed 50 million and continues to grow.
Conclusion
BTC, regarded as the largest meme coin in Web2, has surpassed $100,000 in market value. As an early participant in Memecoins, are they merely gamblers pursuing riches or forward-looking investors? Ultimately, where will Memecoins head? Will they fade into obscurity after marginalization, or will they gradually develop and enter the mainstream?
Cycles alternate and rotate; time tests the truth, and the answer is written in the future.
