The cycle of Memecoin rapidly rising from a low market value to a high market value has indeed shown an accelerating trend in the past few years. Here are several factors that may have caused this phenomenon:

1. Crypto market maturity and increased liquidity

As the crypto market expands rapidly, overall market liquidity has increased significantly. More investors, faster trading platforms, and easier access to cryptocurrency purchases from large exchanges such as Coinbase and Binance have allowed Meme Coin to attract more funds in a shorter period of time, driving its market capitalization to skyrocketing in the short term.

2. Social media driven effect

The development of meme coins relies on social media platforms such as Twitter, Reddit, Discord, and TikTok. As the investor communities on these platforms continue to grow, some meme coins quickly attract attention on the network through "viral transmission". Large-scale investor and community support allow these coins to attract a large amount of investment in a very short period of time, causing their market value to grow rapidly.

3. The rise of DeFi and decentralized trading platforms

The rise of decentralized finance (DeFi) and decentralized exchanges (such as Uniswap and PancakeSwap) has made it easier to issue Meme coins. Almost any developer can issue Meme coins on the blockchain at a very low cost. Because decentralized platforms allow users to purchase new coins without going through traditional review procedures, Meme coins can be widely spread through decentralized markets in a very short period of time.

4. Speculation and FOMO (Fear of Missing Out)

Investor speculation and the "FOMO" (Fear Of Missing Out) effect are important driving forces behind the rapid rise in Meme coin prices. Many investors hope to find the next opportunity to get rich overnight like Dogecoin or Shiba Inu, which leads to a large amount of speculative funds pouring into emerging Meme coin projects. Once these coins start to rise sharply, more investors are eager to follow up, forming an acceleration effect, driving their market value to grow sharply in a short period of time.

5. The strong influence of the community

The success of a meme coin is often closely tied to the community behind it. For example, the huge success of Dogecoin and Shiba Inu is inseparable from the driving force of their communities. The community can have a significant impact on currency prices in the short term by holding events, forwarding tweets, and collective purchases. When the community grows to a certain scale, the currency price will tend to grow more rapidly.

6. The technical threshold is lowered and issuance is easy

The technical threshold for issuing new coins has been greatly reduced, especially the token standards based on Ethereum (ERC-20) and BSC (Binance Smart Chain), which make it easy for almost anyone to issue their own Meme coins. This ease has led to a large number of new coins emerging in the market, and some of these coins can skyrocket in a short period of time due to community promotion and speculative psychology.

7. Innovation of smart contracts and token mechanism design

Many Meme coin projects attract investors through innovative smart contract designs, such as automated dividends, deflation mechanisms, and buying and selling tax mechanisms. These mechanisms are designed to motivate coin holders to hold for a long time and trigger certain incentives when trading, thus creating an environment where the coin price rises sharply in the short term.

8. The driving effect of large investors

In the process of Meme coin's market value rising, the actions of early large investors (whales) often have a great impact on the market. When these large investors invest and push the price of the coin up, other retail investors will follow suit and invest, thus forming a wave of rapid growth.

To sum up, the main reason why the cycle of Meme coin from low market value to high market value is getting shorter and shorter is:

  • Investment market liquidity is stronger

  • Social media effects accelerate

  • Convenient decentralized trading platform

  • Investors' speculative psychology

  • And community-driven efforts, etc.

However, such rapid growth comes with huge risks, and many meme coins may experience an equally rapid decline after a short-term surge. Therefore, investors should be extremely cautious when participating in such markets.