Can meme coins repeat 2024's 500% market cap growth in 2025?
The meme coin market value grew 500% from $20 billion in January to $120 billion in December 2024.
A research from DWF Labs says meme coins have become a sophisticated business segment.
DWF Labs argues meme coin growth shows social capital's usefulness.
DWF Labs said on Thursday that the meme coin market cap rose over 500% in 2024 due to a shift in investor valuation, particularly among younger investors.
Growth of meme coins creates fresh value. DWF Labs' recent analysis shows that meme coins' market valuation rose 500% from $20 billion in January to $120 billion in December in 2024, outperforming all other crypto asset classes.
The success was due to token generating sites like Pump.fun, which lets users produce meme currencies in minutes. Users distributed hundreds of meme tokens throughout the platform's first few months.
The paper emphasized how meme coins like Dogecoin, which began as a joke, have grown into genuine assets, garnering institutional investment and attention.
DWF Labs found meme coins appeal with younger investors, indicating a shift in their wealth-building and community engagement perspectives.
These younger investors see meme currencies as symbols of digital culture and community expression, not just tokens.
Meme currencies have always been controversial, but DWF Labs says they transform value generation.
"Their success challenges traditional notions of intrinsic value and asset fundamentals, suggesting that in the digital economy, community consensus and social capital can be as powerful as traditional financial metrics," said DWF Labs.
New meme currencies provide consumers and conventional investors a solid value proposition, according to DWF Labs.
In 2025, market participants estimate meme currencies will perform like 2024. After its four-year cycle, investors anticipate the crypto market to rise in the next months.
Meme coins regularly outperform Bitcoin and Ethereum during market uptrends. They also underperform other assets during downtrends.
