Author: shaofaye123
Memecoin is an unavoidable theme in 2024. Classic meme coins such as Dogecoin and Shiba Inu have an average increase of more than 5 times in 2024, while the investment returns of emerging meme coins such as MooDeng and PNUT are as high as 100 times. The overproduction of tokens and high circulation and high valuation of VC coins have made this round of bull market a bull market where no one takes over. Therefore, Memecoin has been extremely active in this round. It has become an indicator of on-chain liquidity, a whistleblower of new narratives, and a thermometer of market sentiment.
This year, we have witnessed the process of Memecoin's transition from frenzy speculation to the gradual move towards mainstream culture and consensus effect, and the great wealth transfer has taken place. In this process, the issuance method is constantly innovating, the asset type is rapidly changing, and the mainstream acceptance and adoption have promoted its vigorous development. Every transformation hides a hundred times or a thousand times the opportunity to get rich. Looking back at the 2024 Memecoin super cycle, let us witness the changes and opportunities of this year together.
Infrastructure is becoming increasingly complete
The prosperity of this round of Memecoin super cycle is inseparable from the continuous improvement of infrastructure. Whether it is the innovation of the underlying issuance method of the B-side or the optimization of the C-side user experience, it provides conditions for Memecoin to flow in funds and expand users rapidly.
Innovation in issuance methods
The traditional Memecoin issuance method is similar to that of ordinary tokens. As an attention economy, Memecoin has rapidly changing market hotspots, but the current asset issuance cycle is long and complex. User preferences and hype rhythms on major public chains are also different. These make it difficult to concentrate market attention and liquidity, and it is difficult to quickly push up asset prices in a short period of time.
PUMP.FUN: The core engine of the super cycle
The pre-sale model of BOME and SLERF has changed the issuance method to a certain extent and attracted market attention. However, RUGs of the Memecoin are frequent, and the above problems have not been effectively solved. The emergence of PUMP.FUN has effectively solved this situation. The Memecoin issuance cycle has begun to shorten, funds have been continuously circulated, and users have gradually concentrated, laying the foundation for the opening of the Memecoin super cycle.
PUMP.FUN was created by founder Alon in January 2024, but it had few followers at the time, and it did not gradually enter the public eye until April. At present, it has issued nearly 5 million Memecoins, accounting for nearly 70% of Solana's daily token issuance, becoming the highest-earning protocol on Solana. As the engine of the Memecoin super cycle, the optimization of asset issuance methods is its core advantage. It allows users to create tokens without any technology (after the August update, there is no need to pay a $2 creation fee). Fair intra-disk fundraising + a reasonable price curve (Bonding Curve) successfully reduces the cost of asset issuance and increases the speed of asset issuance. This is an effective solution to the problem of rapid conversion of Memecoin hot spots and difficulty in concentrating capital speculation in the current market.
In addition, the success of PUMP.FUN is not only due to the innovation of the mechanism. Its user positioning and product design are also excellent. From the user side, it solves the real problem of most people in the Web3 market, "users want to get higher multiples of returns in a simpler, faster and lower-cost way." From the product side, it is one of the few projects with a complete commercial closed loop, and the source of profit is clear and traceable. (1% of the platform transaction fee before listing on Raydium, and the "currency listing fee" of 6 SOL during the packaging and listing on Raydium.)
Currently, according to Dune data, as of December 23, PUMP.FUN has deployed nearly 5 million Memecoins since its launch, with 300,000 daily active users and 170,000 new addresses added daily. According to DefiLlama data, PUMP.FUN's protocol revenue in the past 30 days has reached as high as US$94 million, and the cumulative protocol revenue is nearly US$300 million.
PUMP.FUN has many imitations and constant micro-innovations
PUMP.FUN started this round of Memecoin super cycle, and the subsequent continuous copycats made the super cycle more prosperous.
- Sun.pump: Memecoin Launchpad becomes the fifth piece of the public chain
A large amount of capital inflow and market attention have led to various public chains launching PUMP.FUN imitation platforms. For a time, Memecoin Launchpad became the fifth standard feature of public chains.
Major public chain ecosystems have begun to support Memecoin in the upstream, midstream and downstream. Platforms such as Four.meme and Flap on BSC have attracted market attention by continuously launching activities and co-branding; on the Base chain, Ape.Store, Rug.fun, Trugly.meme and other issuing platforms have attracted user participation through various gameplays; on BTC Layer 2, many imitation disks have also emerged, such as LnPUMP.FUN, SatsPUMP.FUN, CPUMP.FUN, etc. And Sun.pump on the Tron chain has driven the "re-prosperity" of the entire Tron chain by "its own strength". For a time, hot money surged in the Tron chain and quickly went out of the circle. The gas on its chain soared, and the price of TRX, which had been silent for a long time, also hit a new high in the past three years. But since then, TRX has been falling all the way, and the current price has fallen back to 0.24 USDT.
As a traffic portal that quickly attracts users, Memecoin can bring a wave of dividends to the public chain, but how to undertake ecological construction is worth thinking about.
- MakeNow.Meme: Optimization of market making model
MakeNow.Meme is no longer popular now, but it attracted widespread attention when it was first launched. It issued more than 2,600 Memecoins in the previous day, with a profit of more than 230+ SOL. Compared with PUMP.FUN, its issuance mechanism is not only a simplification of the asset issuance method, but also provides a new direction for the market-making model.
- The asset issuance method is further simplified - on Twitter, post a tweet in a fixed format (the tweet starts with a $ sign and a stock code, plus a token description/video/picture, etc.) and @ the official account, and wait for the official account to reply with the token contract address in the comment area.
- Optimization of the market-making model - fair launch method On the surface, everyone needs to scan the chain to obtain the contract in the first place. But in fact, KOLs and project parties may be able to reach an agreement with the platform privately to snipe and buy low-priced chips in advance.
According to Dune data, MakeNow.Meme gradually died out just one week after its creation, ending up with no one paying attention to it. This may confirm that the core narrative and main logic of Memecoin is still the pursuit of fairness.
- Moonshot: Backed by DEX Screener Natural Traffic
Moonshot was developed by DEX Screener around June this year. Although it is backed by DEX Screener and even embedded in the platform, its data is still very limited compared to PUMP.FUN. Although it has natural traffic, it does not seem to have done a good job in receiving and converting traffic. MetaData is not displayed before launch, and the launch history cannot be easily checked, and the function lacks transparency.
Its data performance after going online is relatively flat. This may indicate that the traffic entrance has always existed, and how to convert users is the key.
Optimizing user experience
In addition to innovations in asset issuance methods and capital diversion, optimization of user experience is also the reason for this round of Memecoin's massive explosion.
TG Bot: Optimization for Web3 users
Behind this round of Memecoin super cycle, the development of tools and on-chain robots is indispensable, and their functions are rapidly updated in continuous iterations. From sniping, fixed investment to security checks and then to correlation analysis. Super tools and robots escort users to dig gold on the chain, and promote Memecoin to the public from the demand side.
During this period, for Memecoin transactions, tools were expanded from mobile to web. For different segmented needs, there are multi-chain compatible professional trading websites, such as gmgn.ai, Bullx, and Photon, as well as convenient and fast TG bots such as Banana Gun, Tojan, and Bonkbot. These service tools specifically for Memecoin transactions have gradually transitioned from comprehensive to in-depth with the help of the Memecoin gold rush. Tools such as wallet analysis, Twitter monitoring, and security testing are becoming increasingly perfect, and the product business model has been verified. In this process, the number of TG Bot users is also increasing, with a maximum of more than 140,000 daily active users and an average daily transaction volume of nearly US$500 million. Although there is still a long way to go compared to on-chain DEX, under the influence of the Memecoin super cycle, this segment is still a blue ocean.
MoonShot: Optimized for Web2 Users
In addition to Web3 users, Memecoin is also the most direct way for Web2 users to enter and understand Web3. However, Memecoin transactions still have many problems such as high security risks, multiple decentralized platforms, and difficulty in obtaining Gas. MoonShot, in which PUMP.FUN incubation team Alliance DAO participated, has solved this problem to a certain extent.
It is a mobile application built on the Solana network that focuses on Meme transactions. It supports users to directly purchase Memecoin through legal currency deposit methods such as Apple Pay, credit cards, and PayPal. This simplification of the social login and legal currency deposit process brings more new users and new funds to the Solana ecosystem, and connects the Memecoin on the chain with funds outside the circle. However, at present, as the wealth effect weakens, the activity of MoonShot users is gradually decreasing. How to effectively convert Web2 users is a problem that has always existed in the crypto field.
The narratives are changing rapidly
Memecoin, as the most representative token of the attention economy in the crypto market, has a diversified development trend in narrative programs under the market boom in 2024. Looking back at various types of God disks in the past, the types of Memecoin narratives are different. But each type represents a specific market trend, community trend, and capital operation model. According to past rules and characteristics, we can roughly divide them into four types: derivative Memecoins triggered by events, community-driven IP Memecoins, concept Memecoins dominated by celebrity effects, and emerging Memecoins across fields and dimensions. Various types have cross-influences and are not completely independent.
Derivative Memecoins triggered by the event
Memecoins triggered by emergencies often attract a high level of attention at the very beginning. Traffic and funds will quickly drive up the price of Memecoin assets during the process of attention. The process from occurrence to rise is often sudden and difficult to replicate. Its core characteristics are rapid outbreak, high short-term multiples but insufficient sustainability, and need to find other motivations after attention fades. Similar targets such as BOME, SLERF, FIGHT, BAN, etc. can all be Memecoins driven by event speculation.
BOME (BOOK OF MEME) is a pre-sale project initiated by Pepe Meme artist Darkfarm. The pre-sale raised more than 10,000 SOL. Due to widespread attention, the trading volume of the token exceeded US$200 million after it was launched. Three days after it was launched on Binance, its market value peaked at over US$1 billion. SLERF, which subsequently adopted the same pre-sale mechanism, accidentally destroyed LP and airdrop reserved tokens due to DEV. The sudden incident and subsequent spread caused the price of Meme tokens to spiral upward.
However, if the meme triggered by an emergency does not receive sustained attention from the market, its price will converge and decrease. The market value of Fight Token, which was derived from the slogan after Trump’s assassination, once exceeded 80 million US dollars, but now it has fallen by more than 90% due to lack of attention; Sotheby’s Vice President Michael Bouhanna issued the art concept meme coin BAN on PUMP.FUN, and it fell by 85% from its highest point after listing on Binance.
Community-driven IP Memecoin
IP-type Memecoins tend to have strong consensus, a long formation cycle and a long fermentation time. After a long period of time, a community can be formed. This type of community-driven IP Meme shows strong resilience in the fluctuations in 2024. It may take a long time to wash from its appearance to a new high. Its core characteristics are high community consensus, strong CULT temperament, or strong resilience in repeated declines and rises. Similar targets include Cult series POPCAT, SPX, APU and other MEW, NEIRO, MANEKI, etc. that have formed IP.
MEW (cat in a dogs world) is a cat that bravely fights against dogs. After the token was launched in March this year, as a pioneer in the "cat track", its market value reached 1 billion. Later, another IP Maneki (Japanese lucky cat) also referred to its 90% liquidity pool and 10% community allocation mechanism, which caused a short-lived Fomo. Another Memecoin that embodies the community IP is Neiro. Neiro is the name of the rescue dog recently adopted by the owner of the deceased Dogecoin prototype Shiba Inu Internet celebrity Kabosu. The market value of the token was nearly 50 million US dollars two days after it was launched. The token price fluctuated repeatedly around the public chain problem and the capitalization problem. The hype of assets continued from the chain to the exchange. Ethereum lowercase Neiro finally won with the help of the community, with a market value of up to 1.2 billion US dollars. In addition, Murad, as a new star in the super cycle, its token screening criteria are tokens that have existed for at least six months and have experienced at least two 70% plunges. Therefore, although SPX's short-term rise benefited from its influence, the importance of community IP is the reason why it was reborn in repeated declines.
Memecoin, a concept dominated by celebrity effect
The performance of Memecoin often forms a binding relationship with key figures. Celebrities can promote related concepts through specific Memecoins, and the tokens will further go viral due to the celebrity effect. Its core feature is that the fluctuation of the coin price is correlated with the influence of the celebrity and the strength of the binding relationship. DOGE, PNUT, TERMINUS, etc. led by Musk, and others such as JENNER, MOTHER, etc. belong to this type.
The behavior and influence of celebrities issuing coins in this round of Memecoin super cycle are also different because of the emergence of Pump.fun. Its pace is faster and the multiples are higher, attracting many Web 2 celebrities to participate. The JENNER token developed by Caitlyn Jenner, a member of the Kardashian family, rose 160 times overnight; the Meme coin MOTHER contract included in the tweets of the famous American female rapper Iggy Azalea on X exploded 30 times in 2 minutes, and the market value reached 200 million US dollars. Musk's concept coin is the focus of Memecoin players. Whenever he publishes topics he is concerned about on social media, such as the Mars concept (TERMINUS), the government efficiency department (DOGE), and the political concept (PNUT), the related tokens on the chain will usher in a short-term rise.
A new cross-domain and multi-dimensional Memecoin
This round of Memecoin super cycle hype is no longer limited to native Web3 content, but spans multiple fields, covering a wider range of topics and themes. In each sector, there are many types of hype targets, and they are quickly circled, attracting attention from multiple fields. From TikTok traffic to new AI technologies, to cutting-edge disciplines such as DeSci (decentralized science) and physics, the hype momentum of Memecoin has spread rapidly, and the fields involved have continued to expand, showing a trend of cross-border integration. Memecoin seems to have become a test field for emerging technologies and a test field for unverified tracks. The core feature of this type of Memecoin is that the narrative is novel and the scope of the circle is wide. Similar MOODENG, PESTO, CHILLGUY, GOAT, ACT, VIRTUAL, AIXBT, RIF, URO, etc. belong to this type.
Moo Deng is a little hippo born in a Thai zoo. With its own meme-like expressions, it has become a favorite on social media such as TikTok and Instagram, and eventually became the emoji package of the year selected by Twitter. The market value of Moo Deng tokens on Solana once reached US$700 million. As the smallest Memecoin by market value, it successfully landed on Coinbase, which triggered the demand for meme hype in the Web 2 sector. After that, PESTO and CHILLGUY tokens also attracted widespread attention due to their own strong Web 2 traffic, and their market value once exceeded US$500 million.
The hype about AI agents was also hot afterwards. GOAT comes from the AI Bot Truth Terminal (@truth_terminal), which was launched in June this year. Its market value soared by more than $1 billion in a short period of time. Then AI Memecoins such as ACT and ELIZA quickly occupied the minds of players on the chain, and AI Agent-related application coins such as ai16z, zerebro, virtual, and aixbt gradually developed into an ecosystem. After that, Binance announced its investment in BIO, and DeSci (decentralized science) entered the public eye. The tokens RIF and URO on the Pump.Science platform, which were combined with experiments, started a new round of hype, with a market value of more than $200 million.
Mainstream acceptance and adoption
Memecoin has evolved from being a marginalized asset to being widely followed by institutions and investors. Its user base continues to grow, and capital inflows are increasing. It is gradually gaining recognition and adoption from the mainstream market.
Judging from the inflow of funds, the liquidity of the market is clear and traceable. Many institutions have begun to configure Memecoin; major exchanges have launched Memecoin; market makers have actively hoarded Memecoin. As of December 23, 2024, the overall market value of Memecoin has climbed to US$230 billion, and it is showing a growing trend. According to a report released by Bybit in June, institutional investors increased their spot holdings by nearly US$300 million in the first half of the year. Almost all crypto exchanges have launched a variety of Memecoins. Binance has launched more than 20 Memecoins (including futures and spot) since 2024, of which 80% of the tokens have seen a significant increase in market value after listing on Binance. Five crypto market makers, including Wintermute, GSR Markets, Auros Global, B2C2 Group and Cumberland DRW, all hold Memecoin, with a holding value of over US$100 million.
From the perspective of user growth, the first is a significant change in attitude. A16Z, who was still arguing about value coins in the first half of the year, began to participate in the hype, accidentally giving birth to the first AI Memecoin GOAT. V God also made a prospect for the future of Memecoin and participated in the publicity and charity work of MooDeng. Pantera partners also publicly expressed their recognition of Memecoin, believing that it is the easiest way for the next generation to experience the latest DeFi applications and introduce them to Web3. Not only that, more and more Web2 users have begun to recognize the value of Memecoin. DeSci's scientific aid experiments, Dogecoin's marine garbage cleaning plan, and NOT as a social reward and red envelope function have created soil for Web2 users to understand and accept Memecoin. According to statistics, from the beginning of 2024 to the end of the year, the number of Memecoin users worldwide has exceeded 50 million and is still growing.
Conclusion
BTC, as the largest meme coin in Web2, has exceeded $100,000 and has been proven by the market. As an early participant in Memecoin, are you a gambler seeking to get rich quickly or a forward-looking investor? Where will Memecoin go in the end? Will it be marginalized and gradually die out, or will it gradually develop and enter the mainstream?
Cycles rotate, time tests the truth, and the answers are written in the future.
