Transition:

Outlook for the Memecoin sector in the second half of 2024

1) Altcoin season at a low point

In addition to the positive factors mentioned above, the explosion of Memecoins in the second half of 2024 can be viewed from the macroeconomic cycle perspective. Currently, the altcoin season index is only 35, and this trend is one of the important reasons for the expected return of the Memecoin sector in the second half of the year.

2) Establishment of ecological participation and consensus in the Memecoin sector

With the launch of platform Memecoins, ecological Memecoins, and various meme coin launch platforms, the Memecoin sector has not only attracted the attention of individual investors but also gained recognition and participation from various ecosystems. From May to August this year, multiple ecosystems have successively emerged as launch platforms, introducing their own ecological Memecoins. Compared to the previous cycle, the internal consensus within the Memecoin sector has become even more solid.

As a pioneer, Memecoins are expected to have four key impacts on ecological construction and project development:

First, major Memecoin foundations, support programs, or community initiatives will continue to emerge, promoting the development of Memecoins within their respective ecosystems through innovative funds and other means.

Second, venture capital will get involved. Starting from the second half of 2024, many VCs have announced plans to invest in Memecoin infrastructure, shifting from the previous adversarial relationship with VCs to a gradual acceptance by them.

Third, strategies regarding Memecoins will become more specialized and transparent.

Fourth, with the formation of liquidity, more support mechanisms will emerge, which means that secondary products based on Memecoins will see new developments. For example, Memecoin management tools, meme content creation and secondary dissemination platforms, as well as secondary creation tools based on Memecoins, will further grow.

3) Increased liquidity and a more favorable meme coin environment

As interest rates are expected to trend downward from the second half of 2024 to the first half of 2025, the overall macro environment will gradually ease. Due to its small market capitalization, high recognition, and low participation threshold, Memecoins are expected to gain more momentum for growth in this environment.