The market cap of meme coins has grown by 500% from $20 billion in January to $120 billion in December 2024.
A study from DWF Labs shows that meme coins are becoming an evolving part of business.
DWF Labs says the growth of meme coins shows the benefit of social capital.
The market cap of meme coins has surged more than 500% in 2024 due to a shift in investor valuation, particularly among younger investors, DWF Labs said on Thursday.
The growth of meme coins creates new value.
The latest analysis from DWF Labs shows that the market valuation of meme coins has increased by 500% from $20 billion in January to $120 billion in December 2024, outperforming all other digital asset classes.
The success was due to token generator sites like Pump, which allowed users to generate meme coins in minutes. Users distributed hundreds of meme tokens within the platform’s first few months.
The paper highlighted how meme coins like Dogecoin, which started out as a joke, have grown into real assets, attracting institutional investment and attention.
DWF Labs found that meme coins are attracting younger investors, indicating a shift in their view of wealth building and community engagement.
These younger investors see meme coins as symbols of digital culture and community expression, not just tokens.
Meme coins have always been controversial, but DWF Labs says they are transforming value generation.
“Their success challenges traditional notions of intrinsic value and asset valuation methods, suggesting that in the digital economy, community alignment and social capital can be as powerful as traditional financial metrics,” DWF Labs said.
New meme coins offer a strong value proposition to traditional consumers and investors, according to DWF Labs.
In 2025, market participants estimate that meme coins will perform like in 2024. After a four-year cycle, investors expect the cryptocurrency market to rise in the coming months.
Meme coins typically outperform Bitcoin and Ethereum during bullish market trends. They also underperform other assets during bearish trends.