Over the past year, Memecoins have performed remarkably in the cryptocurrency field, becoming one of the standout sectors. Today, the total market capitalization of Memecoins has surpassed $100 billion, exceeding the total market capitalization of decentralized finance (DeFi) and even larger than the combined total of decentralized infrastructure networks (DePIN), gaming, and the metaverse.
Given the scale and diversity of the Memecoin asset class, we hope to conduct a comprehensive analysis to identify potential investment opportunities.
We studied the strongest performing Memecoins each quarter, and the results confirmed our predictions: Memecoins dominated performances each quarter.
Specifically, in the first quarter, $POPCAT, $WIF, $MOG, and $MYRO performed exceptionally well.
In the second quarter, standout performers included $PONKE, $SPX, $TURBO, $GIGA, $WOJAK, $BRETT, and $MOG.
By the third quarter, $SPX, $GIGA, $FUD, and $MUMU emerged as the most expressive tokens.
When attempting to apply methodology to Memecoins, you'll find that understanding 'meta trends' is crucial. This is commonly found in the cryptocurrency realm but is especially pronounced in Memecoins, where its influence is greatly amplified. To deeply understand this phenomenon, observing and analyzing the evolution of these meta trends is essential. Here is an extended timeline aimed at highlighting some key 'meta trend' shifts and origins within Memecoins:
Before 2021, the market primarily consisted of Dogecoin. However, the launch of Shiba Inu changed this landscape, as it was seen as the first true 'Dogecoin killer.' People naturally turned to Shiba Inu in an attempt to replicate Dogecoin's success. This quest for the 'next hot coin' gradually formed a larger 'meta trend.' The success of Shiba Inu sparked the 2021 meme coin craze associated with dogs and Elon Musk, marking the birth of the first true Memecoin meta trend.
As we entered 2023, the rise of Pepe Memecoin brought about Memecoins related to frogs and the Boy Club, reigniting market interest. By the end of 2023, the emergence of Bonk and Wif marked Solana as the mainstream Memecoin chain, ultimately giving birth to pump.fun. This series of events triggered widespread Memecoin fervor in the first quarter, with new 'meta trends' emerging almost weekly or even daily. Although the market reached a peak in March, it cooled down in the summer. Meanwhile, the understanding framework of Memecoin communities and network effects proposed by @MustStopMurad began to gain widespread attention, attracting significant capital into 'cult coins' like SPX6900.
Recently, with the breakthrough of Bitcoin, the market's fervent sentiment has reignited, and new 'meta trends' are emerging around projects like @truth_terminal's $GOAT, the adorable hippo $MOODENG, and $PEANUT. May these projects continue to thrive.
Given the variety of 'meta trends,' we attempt to segment the market based on different categories to better understand and capture potential investment opportunities within these trends.
It is evident that Dogecoin still dominates the Memecoin space, primarily due to the strong momentum of Dogecoin.
Weeks ago, when we began sorting relevant data, the Sentient AI category had barely emerged, while the Martyr category was still not fully formed (paying tribute to the early $Harambe). This clearly indicates that the Memecoin asset class is rapidly evolving, with new trends and sectors emerging, reflecting the market's swift response to different cultural symbols and topics.
As new 'meta trends' continue to emerge, more and more fields and themes are being pushed to the forefront in the market, and the diversity and changes in Memecoins are accelerating, suggesting that this trend will likely continue.
As new 'meta trends' continue to emerge, more and more fields and themes are being pushed to the forefront in the market, and the diversity and changes in Memecoins are accelerating, suggesting that this trend will likely continue.
For instance, crypto cultural coins like $bitcoin drew some attention in 2023, although there wasn't much new capital injected into the market at that time. But later that year, the inflow of new capital gradually shifted crypto culture to accommodate broader internet culture, such as $giga, $npc, etc. This change reflects a shift in market preferences and indicates dynamic changes in the Memecoin space.
Many AI Meme projects have reached nine-figure market capitalizations, but it may be too early to shift them from the 'meta trend' to an entirely new category. Earlier, categories like celebrity tokens and political memes also saw a period of growth but gradually faded. This indicates that while the trend of Memecoins is volatile and full of opportunities, many projects may disappear over time, just like the fleeting NFT craze of 2021.
Furthermore, there are still opportunities in the market to introduce new animals. For some zoo animals (such as tigers, giraffes, zebras, etc.), current attention is low, which may provide unexpected opportunities for investors. Additionally, for entirely new content areas like superheroes and sports, existing fan bases may tokenize in innovative ways, opening new avenues for the future development of Memecoins.
In any case, I look forward to hearing everyone's feedback or learning about others' perspectives on the market.
