Carnival and cold thinking about Meme coins: Is it a story or a bubble?

Author: Nomos Labs Source: mirror

Few people have thought that the birth of Meme currency may be a "cultural experiment" in the crypto world: How much can a joke be worth? How many waves and ripples in the financial world can a humorous joke bring? From DOGE to SHIB, to $Neiro, which has exploded in profitability this year, these seemingly “nonsensical” currencies have repeatedly refreshed people’s views on the narrative capabilities of Meme coins.

In 2024, the meme coin market is still bustling amid uncertainty. It is not only an entertainment symbol in the encryption circle, but also a paradise for speculators and a barometer of market sentiment. But if we dig into the story behind the skyrocketing price, we will find that behind this carnival, there is a logic that is both familiar and unfamiliar: Meme culture, market sentiment, and technological narratives are redefining the value boundaries of Meme coins.

1. How can Meme coins tell a “good story” about emotions?

On the surface, Meme coins are a continuation of Internet meme culture, but its real charm lies in its ability to quickly gather emotions through storytelling and create short-term "group fanaticism." But regarding the long- term value of Meme coins, no one has yet been able to clear away the fog and find the certainty and connotation of the countless stories in that "bubble".

It’s a joke, but also a cultural resonance

The earliest $DOGE Dogecoin can be said to be a complete "spoof". It has neither complex technical support nor ambitious application plans, but relying on a Shiba Inu emoticon, it has become the spokesperson of Internet meme culture. In 2024, this meme narrative has been further promoted, and new players not only rely on "jokes" and "humor" to attract attention, but also begun to play the cultural emotion card.

For example, the frog image behind Pepe's Sad Frog has long been a classic in Internet culture. Its popularity does not rely on technical highlights, but on social communication and cultural recognition. In a short period of time, Pepe's community has grown explosively and has become the biggest meme currency dark horse this year. It is not difficult to see that as long as it can capture the "emotional points" in the Internet meme culture, Meme currency can quickly tell good stories. Build consensus.

Community driven: more like an emotional game

Behind the popularity of a Meme coin, there must be a crazy community. Elon Musk’s support for Dogecoin and $Pepe’s “Frog Army”, these community members are not only investors, but also “content creators” who actively spread the word . They are keen on "creating memes" and attracting people on social platforms, and even turned Meme coins from a "joke" into a "trend."

The example of $SHIB is typical. In 2024, it not only relied on meme culture to maintain popularity, but also tried to attract long-term users through technical narratives. For example, it launched the metaverse project Shibaverse. Although it is still in its early stages, it is enough to give the community a new "showing off point."

We can see from this that for Meme currency, meme culture is the background, but its real charm is the ability of social storytelling-telling an emotionally resonant story that makes everyone "want to buy and dare to buy" ”.

2. A magnifying glass for market sentiment and a safe haven for

speculators

But in any case, the underlying logic of a "good story" that can affect market changes needs to be "profit-driven." The reason why Meme coins continue to be popular is not only because it is "fun", but also because it has become a high-volatility haven for speculators when the crypto market is down.

Prices skyrocket, speculators’ favorite “myth of getting rich”

Looking back on 2024, the most eye-catching trend is undoubtedly the surge of $Pepe. From the beginning of the year to the middle of the year, the price of this sad and funny frog has increased more than a hundred times - the market is attracted to this type of currency, not because of its powerful technology or applications, but because it is easy to "speculate" ”.

The issuance threshold of Meme coins is low, the unit price is extremely low, and the room for growth seems unlimited. This feature is particularly friendly to retail investors: even if you only have a few hundred dollars, you can achieve a "10 times, 100 times" imagination. For those investors who "entered the market late", this high-risk, high-yield speculative variety has become their best choice to catch up with the wealth effect.

Market shocks, "emotional exit" in bear market

Interestingly, when the overall cryptocurrency market entered a period of shock, the popularity of Meme coins rose against the trend. This was not because of the hard fundamentals of Meme coins themselves, but because speculative funds needed a new "emotional outlet" ”.

Different from mainstream currencies, Meme coin does not have complex valuation logic, nor does it rely on strong ecological support. It relies on market sentiment. When other assets are difficult to leverage the sentiment of retail investors, Meme coin has become the "bridgehead" for emotional trading. .

Therefore, the clear market direction is that behind the price fluctuation of Meme coin is the amplification and reflection of market sentiment: for speculators, it is the first choice for low cost and high volatility; for the market, it is a real "emotion" Mirror". Therefore, it is not difficult to understand that everyone begins to like listening to them tell stories, and even more likes them to start creating "wealth-making stories" that are right in front of their eyes and full of fantasy.

3. Can Meme coins still use technology to add points to themselves?

We understand the changes in market sentiment, but we must also clearly recognize that relying on cultural narratives and speculative sentiments can make people popular for a while, but if Meme currency wants to go further and find the underlying logic that can support long-term value compound interest, it must rely on technological innovation. Create new narratives and application scenarios.

AI "new memes" create technological narrative empowerment

This year, AI technology has become a hot topic in the encryption circle. Some Meme coin projects have seized the opportunity and launched AI-enabled gameplay, such as AI-generated content. In this way, Meme coin projects can quickly and cost-effectively provide investors and communities with Members provide continuous interactive and entertainment experiences, such as AI trading strategies. With the advantages of AI algorithms, the project team can more accurately predict market trends, analyze transaction data, optimize investment decisions, etc., although early performance may not have achieved the expected results. , but it is undeniable that the introduction of AI technology has The coin injects new vitality and new narrative threads.

NFT linkage, continuation of cultural narrative

At the same time, NFT remains an important "partner" of Meme coins and will continue to show its unique charm and potential in 2024. Especially in projects like $Pepe, investors can not only make profits by buying and holding Pepe coins, but also show their identity and status by obtaining unique NFTs.

The combination of NFT and Meme currency is no longer just a simple digital asset exchange, but also a reflection of profound identity and community culture. Through the NFT binding gameplay, these projects provide investors with more personalized and emotional The participation method makes holding these Meme coins not only an investment behavior, but also an expression of community belonging. It is not difficult to imagine that as more similar innovative gameplay continues to emerge, NFT will continue to become an important "accelerator" for the development of Meme currency projects.

Attempts to combine payment scenarios with DeFi and the increase in token value

Of course, in the cryptocurrency market that is not lacking in imagination, some Meme coins are also trying to expand their payment functions. At the end of the year, DogWifCoin officially announced a cooperation with Oobit to launch a new payment function "Wif Pay", allowing users to use Spend $WIF and enjoy 3% cash back rewards.

Projects like SHIB, by combining DeFi protocols, allow currency holders to obtain more actual benefits from them. For example, the governance token $BONE of the SHIB ecosystem is widely used in liquidity mining and investment in ShibaSwap. Investors can earn income through staking (BURYing) and providing liquidity (DIGging).

Technological narratives like this are still going on, and technological empowerment will be an important aspect of the next stage of Meme currency. Although it seems to be "storytelling" in the short term, in the long term, as long as the technological narrative is implemented, Meme currency may eventually be able to Break away from the fate of "short-term speculation".

Written at the end: The next stop for Meme coins, will it be the rise of meme economy and culture or the bursting of the bubble cycle?

When we look back at the market in 2024, we can find that there are three key driving forces behind the rise of Meme coins:

• Culture: Meme culture and community consensus are the foundation of Meme coins, which can continue to tell an attractive story;

• Sentiment: The fluctuation of market sentiment and the promotion of speculators make it the most "explosive" asset;

• Technology: New concepts and new application scenarios are the key to making Meme coins more "valuable" in the future.

However, there are obvious risks with all three: How long can the story be told? How long can the emotions last? Can the technology really be implemented? The answers to these questions will determine the future direction of Meme currency.

But as we begin to look toward the future of 2025, one thing is certain: Meme coins have gone from being a “joke” to a unique phenomenon in the crypto market. In the "golden cycle" of cryptocurrencies that has become increasingly restless and continues to explode after the U.S. election, its vitality is far from over, but can it escape from the carnival and enter the real "era of value":

2025, please use Meme coins to answer.