Author: shaofaye123, Foresight News
Memecoins are an unavoidable theme in 2024. Classic meme coins like Dogecoin and Shiba Inu have averaged over 5 times in price increase in 2024, while emerging meme coins like MooDeng and PNUT have achieved return rates as high as hundreds of times. The oversupply of token production and high circulation valuations of VC tokens have made this bull market a game of not passing the baton. Therefore, Memecoins have performed exceptionally actively in this round, becoming indicators of on-chain liquidity, whistleblowers of new narratives, and thermometers of market sentiment.
This year we witnessed the transition of Memecoins from frenzied speculation to gradually entering mainstream culture and consensus effects, resulting in a significant wealth transfer. Throughout this process, the methods of issuance have been innovating continuously, asset types have been rapidly changing, and mainstream acceptance and adoption have driven their vigorous development. Each transformation hides opportunities for immense wealth. Looking back at the 2024 Memecoin super cycle, let us witness the changes and opportunities this year brings.
Infrastructure is becoming increasingly improved
The prosperity of this round of Memecoin super cycle is inseparable from the continuous improvement of infrastructure. Whether it's the innovation of bottom-layer issuance methods on the B side or the optimization of user experience on the C side, both have provided conditions for the rapid influx of funds and expansion of users in Memecoins.
Innovation in issuance methods
Traditional Memecoin issuance methods are similar to ordinary tokens, while Memecoins, as attention economy tokens, experience rapid market shifts. Currently, however, the asset issuance cycle is long and the methods are complicated; user preferences and speculative rhythms on various public chains are also different. These factors make it difficult for market attention and liquidity to concentrate, hindering rapid price increases in the short term.
PUMP.FUN: The core engine of the super cycle
The money-sending frenzy triggered by BOME and SLERF this year, although to some extent changed their issuance methods and attracted market attention, has led to frequent money-sending scams, and the aforementioned issues remain unresolved. The emergence of PUMP.FUN has effectively addressed this situation, shortening the Memecoin issuance cycle, ensuring continuous capital flow, and gradually concentrating users, laying a foundation for the initiation of the Memecoin super cycle.
PUMP.FUN was created by founder Alon in January 2024, but attracted little attention until April when it gradually entered the public eye. It has already issued nearly 5 million Memecoins, accounting for nearly 70% of the daily token issuance on Solana, becoming the highest-earning protocol on Solana. As the engine of the Memecoin super cycle, optimizing asset issuance methods is its core advantage. It allows users to create tokens without any technical knowledge (after the August update, no $2 creation fee is required), and the combination of fair fundraising within the platform + reasonable price curves (Bonding Curve) successfully reduces the cost of asset issuance and increases the speed of asset issuance, effectively addressing the issue of rapid fund speculation and the difficulty of concentrating capital in the current market.
Furthermore, the success of PUMP.FUN is not just due to innovative mechanisms. Its user positioning and product design are also quite excellent. From the user end, it addresses the real problems faced by most people in the Web3 market: 'Users want a simpler, quicker, and cost-effective way to obtain higher multiples of returns.' From the product end, it is one of the few projects with a complete commercial closed loop, with clear and traceable profit sources. (The platform trading fee was 1% before launching on Raydium, and the 'listing fee' during the Raydium launch process was 6 SOL.)
Currently, according to Dune data, as of December 23, PUMP.FUN has deployed nearly 5 million Memecoins since its launch, with daily active users reaching up to 300,000 and new addresses added daily reaching 170,000. According to DefiLlama data, PUMP.FUN's protocol revenue in the past 30 days has reached a high of 94 million dollars, with total protocol revenue nearing 300 million dollars.
An abundance of PUMP.FUN imitators has emerged, with continuous minor innovations.
PUMP.FUN has initiated this round of Memecoin super cycle, and the continuous emergence of imitators has made the super cycle increasingly prosperous.
Sun.pump: Memecoin Launchpad becomes the fifth component of public chains
A large influx of capital and market attention has led various public chains to launch PUMP.FUN imitators, making Memecoin Launchpad a standard fifth component of public chains.
Major public chain ecosystems are increasingly supporting Memecoins across upstream, midstream, and downstream. Platforms like Four.meme and Flap on BSC are attracting market attention through continuous activities and collaborations; on the Base chain, platforms like Ape.Store, Rug.fun, and Trugly.meme attract user participation through various gameplay; on BTC Layer 2, many imitation projects have emerged, such as LnPUMP.FUN, SatsPUMP.FUN, CPUMP.FUN, etc. Moreover, the Sun.pump on the Tron chain has single-handedly driven a renewed prosperity for the entire Tron chain. For a moment, hot money surged on the Tron chain, rapidly breaking out, and its on-chain Gas soared, with the previously dormant TRX price reaching a new high in nearly three years. However, TRX has since declined, with the current price dropping to 0.24 USDT.
Watching him build high rises, watching his building collapse. As a fast way to attract users, Memecoin can bring a wave of bonuses to public chains, but how to support ecological construction is worth considering.
MakeNow.Meme: Optimizing the market-making model
MakeNow.Meme is no longer hot, but it generated widespread attention when it was first launched. It issued over 2,600 Memecoins in one day, with earnings exceeding 230+ SOL. Its issuance mechanism, compared to PUMP.FUN, not only simplifies the asset issuance method but also provides a new direction for the market-making model.
Simplifying the asset issuance method — On Twitter, users release tweets in a fixed format (the tweet starts with the $ symbol and stock code, along with token descriptions/videos/images, etc.) and @ the official account, waiting for the official account to reply with the token contract address in the comments.
Optimizing the market-making model — The fair launch method superficially requires everyone to scan the chain to obtain the contract at the first opportunity. However, in reality, KOLs and project parties may privately reach agreements with platforms to preemptively buy into low-priced tokens.
According to Dune data, MakeNow.Meme gradually faded away just a week after its creation, heading toward a state of being unnoticed. This may confirm that the core narrative and main logic of Memecoins still revolve around the pursuit of fairness.
Moonshot: Natural traffic backed by DEX Screener
Moonshot was developed by DEX Screener around June this year. Although it is backed by DEX Screener and even embedded within the platform, its data remains sparse compared to PUMP.FUN. Despite having natural traffic support, it seems to have failed to effectively capture and convert that traffic, not displaying MetaData before launch, and lacking the ability to search launch history simply, thereby lacking transparency in functionality.
Its data performance has been relatively mediocre after launch. This may indicate that the traffic entry has always existed; how to convert users is the key.
Optimizing user experience
In addition to innovations in asset issuance methods and capital guidance, optimizing user experience is also a reason for the large-scale explosion of Memecoins this round.
TG Bot: Optimizing for Web3 users
Behind this round of Memecoin super cycle is the development of tools and on-chain robots, with functionalities rapidly updated through continuous iterations. From sniping, regular investments to security checks and correlation analysis. Powerful tools and robots are safeguarding users in on-chain gold mining, driving Memecoins toward the public from the demand side.
During this period, tools for Memecoin trading have expanded from mobile to web, addressing different niche needs. There are professional trading websites compatible with multiple chains, such as gmgn.ai, Bullx, Photon, as well as convenient TG bots like Banana Gun, Tojan, Bonkbot, etc. These services specifically targeting Memecoin trading have transitioned from a broad approach to a more in-depth one, with tools for wallet analysis, Twitter monitoring, security testing, and other functionalities increasingly refined, and the product business model has been validated. During this process, the number of TG Bot users has also been steadily increasing, with daily active users exceeding 140,000 and daily trading volumes reaching nearly 500 million dollars. Although there is still a long way to go compared to on-chain DEX, under the influence of the Memecoin super cycle, this niche field remains a blue ocean.
MoonShot: Optimizing for Web2 users
Apart from Web3 users, Memecoins are also the most direct way for Web2 users to enter and understand Web3. However, there are still many issues with Memecoin trading, such as high security risks, platform dispersion, and difficulty obtaining Gas. The MoonShot initiative, involving the incubator team Alliance DAO from PUMP.FUN, has addressed these issues to some extent.
It is a mobile application focused on Meme trading, built on the Solana network, allowing users to directly purchase Memecoins using fiat payment methods such as Apple Pay, credit cards, and PayPal. This simplification of the social login and fiat deposit process brings more new users and new funds to the Solana ecosystem, bridging the link between on-chain Memecoins and off-chain funds. However, currently, as the wealth effect diminishes, the user activity on MoonShot is gradually declining. How to effectively convert Web2 users has been a long-standing issue in the crypto space.
Narratives rapidly iterate and change
Memecoins, as the most representative assets reflecting the attention economy phenomenon in the crypto market, are experiencing a trend of diverse narrative development in the 2024 market boom. Reviewing past various 'meme coins', the themes of Memecoin narratives are quite different. However, each type represents specific market trends, community movements, and capital operation models. Based on past patterns and characteristics, we can roughly categorize them into four types: Memecoins derived from events, community-driven IP Memecoins, concept Memecoins dominated by celebrity effects, and emerging Memecoins that cross fields and dimensions. Various types intersect and influence each other, rather than being completely independent.
Memecoins derived from events
Memecoins triggered by sudden events often gather extremely high attention right from the start, and the flow of attention and funds can swiftly drive up the asset prices of Memecoins. Their occurrence and subsequent price rises are often sudden and difficult to replicate. Their core characteristics are rapid explosions with high short-term multiples but insufficient sustainability; once attention fades, other driving forces need to be found. Similar targets like BOME, SLERF, FIGHT, and BAN can all fall under the category of event-driven speculative Memecoins.
BOME (BOOK OF MEME) is a presale project initiated by Pepe Meme artist Darkfarm, raising over 10,000 SOL in presale. Due to widespread attention, the token's trading volume exceeded 200 million dollars, and its market value peaked at over 1 billion dollars just three days after launching on Binance. Subsequently, SLERF, which adopted the same presale mechanism, saw its Meme token price spiral upward due to unexpected destruction of LP and airdrop reserved tokens, sudden events, and subsequent dissemination.
However, if the Meme generated by sudden events does not continue to attract sustained attention from the market, prices will converge and decline. The market value of the Fight token, derived from the slogan after Trump was attacked, once exceeded 80 million dollars, but now lacks attention and has dropped over 90%; Michael Bouhanna, vice president of Sotheby's, issued the art concept Meme coin BAN on PUMP.FUN, which saw a maximum decline of 85% after going live on Binance.
Community-driven IP Memecoins
IP-type Memecoins often have strong consensus, forming cycles that ferment for a long time, with communities potentially forming after extended periods. This type of community-driven IP Meme exhibited strong resilience amidst volatility in 2024. Their journey from emergence to new highs may involve long periods of consolidation; their core characteristics are high community consensus, strong CULT characteristics, or demonstrating resilience amidst repeated declines and rises. Examples include the Cult series POPCAT, SPX, APU, and others like MEW, NEIRO, MANEKI that have already formed IP.
MEW (cat in a dogs world) is a brave cat that fights against dogs; the token launched in March this year reached a peak market value of 1 billion as a pioneer in the 'cat track'. Subsequently, another IP Maneki (Japanese lucky cat) also referenced its mechanism of 90% liquidity pool and 10% community allocation, triggering a brief FOMO. Another example of community IP-like Memecoins is Neiro, named after the rescue dog adopted by Kabosu, the owner of the deceased Shiba Inu internet celebrity. The token reached nearly fifty million dollars in market value two days after launch, with prices fluctuating around public chain issues and case sensitivity. The asset's speculation transitioned from on-chain to exchanges. The Ethereum-based lowercase Neiro ultimately succeeded with the community's support, reaching a peak market value of 1.2 billion dollars. Moreover, Murad, as a rising star of the super cycle, has set its token selection criteria to be at least six months old and experience at least two 70% price drops. Thus, while SPX experienced a short-term surge, its community IP's importance was the reason for its rebirth amidst repeated declines.
Concept Memecoins dominated by celebrity effects
The performance of Memecoins is often closely linked to key individuals; celebrities can promote related ideas through specific Memecoins, and tokens can further break out due to the celebrity effect. Their core characteristic is that price fluctuations correlate with the size of the celebrity's influence and the strength of the binding relationship. Examples like DOGE, PNUT, TERMINUS led by Musk, and others like JENNER and MOTHER belong to this type.
The behavior and impact of celebrities issuing tokens have been different in this round of the Memecoin super cycle due to the emergence of Pump.fun, with a faster pace, higher multiples, attracting numerous Web 2 celebrities to participate. Caitlyn Jenner, a member of the Kardashian family, developed the JENNER token, which surged 160 times in one night; the famous American female rapper Iggy Azalea's tweet on X included the Meme coin MOTHER contract, which skyrocketed thirty times in two minutes, reaching a market cap of over 200 million dollars at its peak. The Musk concept coin has become a focal point for Memecoin players; whenever he posts topics of interest on social media such as Mars concepts (TERMINUS), government efficiency departments (D.O.G.E), political concepts (PNUT), related tokens on the blockchain experience short-term spikes.
Emerging Memecoins that cross fields and dimensions
This round of Memecoin super cycle speculation is no longer limited to native Web3 content but spans multiple fields, covering a broader range of subjects and themes. In various sectors, there are diverse types of speculative targets that quickly attract attention from multiple fields. From TikTok traffic to new AI technologies, to DeSci (decentralized science), physics, and other cutting-edge disciplines, the speculative momentum of Memecoins is rapidly spreading, with the areas involved continuously expanding, showing a trend of cross-border integration. Memecoins seem to have become a testing ground for emerging technologies and an experimental field for unproven tracks. The core characteristics of this type of Memecoin are innovative narratives and a wide outreach. Similar examples include MOODENG, PESTO, CHILLGUY, GOAT, ACT, VIRTUAL, AIXBT, RIF, URO, etc., all belonging to this type.
Moo Deng is a baby hippopotamus born in a Thai zoo, becoming a social media darling on TikTok and Instagram due to its inherently meme-worthy expressions, eventually being selected as the annual meme by Twitter. The market value of the Moo Deng token on Solana once reached 700 million dollars, successfully listing on Coinbase as the smallest Memecoin by market cap, triggering demand for Meme speculation targeting the Web 2 sector. Following this, tokens like PESTO and CHILLGUY also garnered widespread attention due to their strong Web 2 traffic, with market values once exceeding 500 million dollars.
Afterward, the speculation around AI agents became equally heated. GOAT, which launched in June this year, is an AI Bot — the Truth Terminal (@truth_terminal), whose market value skyrocketed to over 1 billion dollars in a short time. Subsequently, AI Memecoins like ACT and ELIZA quickly captured the minds of on-chain players, with applications related to AI agents such as ai16z, zerebro, virtual, and aixbt gradually developing into an ecosystem. Then Binance announced its investment in BIO, bringing DeSci (decentralized science) into the public eye, with tokens RIF and URO from the Pump.Science platform, which combines experiments, starting a new wave of speculation, with market values peaking at over 200 million dollars.
Mainstream acceptance and adoption
Memecoins have transitioned from initially marginalized assets to being widely recognized by institutions and investors, with a continually growing user base and increasing capital inflows, gradually gaining mainstream market acceptance and adoption.
From the perspective of capital inflow, the market's liquidity is clear. Numerous institutions have begun to allocate Memecoins; major exchanges are continuously listing Memecoins; market makers are actively accumulating Memecoins. As of December 23, 2024, the overall market value of Memecoins has soared to 230 billion dollars and is showing a continuously increasing trend. According to a report released by Bybit in June, institutional investors increased their spot holdings by nearly 300 million dollars in the first half of the year. Almost all crypto exchanges have listed various Memecoins; Binance has launched over 20 Memecoins since 2024 (including futures and spot), with 80% of tokens experiencing significant increases in market value after being listed on Binance. Five crypto market makers, including Wintermute, GSR Markets, Auros Global, B2C2 Group, and Cumberland DRW, are all holding Memecoins worth over 100 million dollars.
From the perspective of user growth, there has been a significant shift in attitudes. In the first half of the year, A16Z, which was still arguing for value coins, began to participate in speculation, unexpectedly giving rise to the first AI Memecoin GOAT. Vitalik Buterin has also made predictions about the future of Memecoins, participating in MooDeng's promotion and charity work. A partner from Pantera has publicly expressed recognition of Memecoins, viewing them as the simplest way for the next generation to experience the latest DeFi applications and introduce them to Web3. Not only that, but more and more Web2 users are beginning to recognize the value of Memecoins. Scientific assistance experiments from DeSci, the ocean garbage cleanup plan for Dogecoin, and social reward and red envelope features of NOT have all created fertile ground for Web2 users to understand and accept Memecoins. According to statistics, from the beginning to the end of 2024, the number of global Memecoin users has exceeded 50 million and continues to grow.
Conclusion
BTC, as the largest meme coin from the perspective of Web2, has surpassed 100,000 dollars in market proof. As an early participant in Memecoins, are they pursuing wealth as gamblers or are they forward-thinking investors? What will be the future of Memecoins, will they become marginalized and gradually disappear, or will they develop step by step into the mainstream?
Cycles alternate, time tests the truth, and the answers are written in the future.
