🗣️aelf Ventures' Voices: The Meme Coin Supercycle💬

#Memecoins have achieved massive growth (over 400%) in the past year, with 75% of new projects launched this year, significantly outperforming other crypto sectors. Classic meme coins, such as @dogecoin and $SHIB, averaged a 105% growth in 2024, while newer entrants like @pnutsolana ($PNUT) skyrocketed with a 1,900% return. This phenomenon can be attributed to their simplicity, high liquidity, and accessible entry points for retail investors who may not be familiar with the complexities of #crypto technology.

Retail traders have been largely supportive as they view meme coins as both investment opportunities and cultural phenomena, fueled by the promise of high returns and an enthusiastic community. Meanwhile, institutional interest in meme coins is polarised. Traditional VCs are criticising them for hindering #blockchain #innovation, while others like @MechanismCap see them as effective tools for driving mass adoption and activity on blockchain networks.

⚡Our take?

While VC-backed tokens, often characterised by low circulating supply and high FDV, struggle to maintain investor interest, meme coins have thrived by capturing the collective desire of ordinary investors for fairness and tangible/speculative returns. This shift underscores a growing disillusionment with VC-heavy narratives, as community-driven initiatives gain momentum.

Despite this, we believe the meme coin supercycle presents a unique opportunity for VCs and investors to reevaluate their strategies. By pivoting towards early-stage investment in meme coins, they can capitalise on the organic growth and community engagement driving these projects.

Supporting infrastructure projects that enhance high-frequency trading, or trading platforms and tools that cater to the meme coin market, also allows them to tap into the increased liquidity of meme coin markets.

This approach positions both VCs and investors to benefit from the meme coin trend, leveraging its grassroots appeal and rapid market penetration to achieve substantial returns.