From the improvement of infrastructure to the explosion of emerging narratives, an overview of the 2024 Memecoin super cycle

Author: shaofaye123

Memecoin is an unavoidable theme in 2024. Classic meme coins such as Dogecoin and Shiba Inu will increase by an average of more than 5 times in 2024, while emerging models such as Hippo (MooDeng) and Squirrel (PNUT) will The return on investment in Yincoin is as high as a hundred times. The overproduction of tokens and the high circulation and high valuation of VC coins have made this bull market a mutually exclusive bull market. 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 from fanatical speculation to gradually moving towards mainstream culture and consensus effect, and a great wealth transfer has occurred. In this process, issuance methods are constantly innovating, asset types are changing rapidly, and mainstream acceptance and adoption have promoted its vigorous development. Every change hides hundreds of times 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.

Infrastructure is improving day by day

The prosperity of this Memecoin super cycle is inseparable from the continuous improvement of infrastructure. Whether it is the innovation of the underlying issuance method on the B-side or the optimization of the user experience on the C-side, Memecoin has provided conditions for capital inflow and rapid user expansion.

Innovation in distribution methods

The traditional Memecoin issuance method is similar to ordinary tokens. As Memecoin is an attention economy, market hot spots change rapidly. However, the current asset issuance cycle is long and the method is complex; user preferences and hype rhythms on major public chains are different. These make it difficult to concentrate market attention and liquidity, and it is difficult to achieve multiple rapid increases in asset prices in the short term.

PUMP.FUN: The core engine of Super Cycle

This year's money-making craze triggered by BOME and SLERF, although its pre-sale model has changed its issuance method to a certain extent, has attracted market attention. However, money disc RUGs occur frequently, 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 continued to flow, and users have gradually concentrated, laying the foundation for the start of the Memecoin super cycle.

PUMP.FUN was created by founder Alon in January 2024, but it had very few followers at the time. It was not until April that it gradually entered the public eye. At present, it has issued nearly 5 million Memecoin, accounting for nearly 70% of Solana's daily token issuance, making it 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 technical skills (after the August update, there is no need to pay a $2 creation fee). Fair intra-day fundraising + reasonable price curve (Bonding Curve) successfully reduces the cost of asset issuance and increases The speed of asset issuance is an effective solution to the problem of rapid conversion of Memecoin hot spots in the current market and difficulty in concentrating funds for speculation.

In addition, the success of PUMP.FUN lies not only in the innovation of the mechanism. Its user positioning and product design are also quite excellent. From the user side, it solves the real problem of most people in the Web3 market, "Users want a simpler, faster and lower-cost way to obtain higher multiples of revenue." From the product side, it is one of the few projects with a complete business closed loop, and the source of profit is clearly traceable. (1% of the platform transaction fee before listing on Raydium, and a “listing fee” of 6 SOL during the packaging and listing process on Raydium.)

Currently, according to Dune data, as of December 23, PUMP.FUN has deployed nearly 5 million Memecoins since its launch, with the number of daily active users reaching 300,000 and the number of daily new addresses reaching 170,000. According to DefiLlama data, PUMP.FUN’s protocol revenue in the past 30 days has reached US$94 million, with cumulative protocol revenue of nearly US$300 million.

PUMP.FUN imitation disks appear frequently and micro-innovations continue

PUMP.FUN started this Memecoin super cycle, and the subsequent imitations made the super cycle more prosperous.

• Sun.pump: Memecoin Launchpad becomes the fifth set of public chains

A large amount of capital inflow and market attention caused various public chains to launch PUMP.FUN imitation disks one after another. For a while, Memecoin Launchpad became the fifth standard set of public chains.

Major public chain ecosystems in the upstream, midstream and downstream sectors have begun to support Memecoin. On BSC, platforms such as Four.meme and Flap attract market attention by continuously launching activities and joint brands; on the Base chain, distribution platforms such as Ape.Store, Rug.fun, and Trugly.meme attract 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 "single-handedly" driven the "re-prosperity" of the entire Tron chain. For a time, hot money surged in the Tron chain and quickly left the circle. Gas on its chain soared, and the price of TRX, which had been dormant for a long time, also hit a new high in the past three years. But TRX has been falling since then, and the current price has fallen back to 0.24 USDT.

Watching him build a tall building, watching his building collapse. 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 models

MakeNow.Meme is no longer popular, but it attracted a lot of attention when it was first launched. More than 2,600 Memecoins were issued on the previous day, and the revenue exceeded 230+ SOL. Compared with PUMP.FUN, its issuance mechanism not only simplifies the asset issuance method, but also provides a new direction for the market making model.

• The asset issuance method is further simplified - on Twitter, follow a fixed format (the tweet starts with a $ symbol and the stock code, plus a token description/video/picture, etc.) and @the official account, and wait for the official account to be posted in the comment area Just reply to the token contract address.
• Optimization of the market-making model - a fair launch method. On the surface, everyone needs to scan the chain to obtain the contract as soon as possible. But in fact, KOLs and project parties may be able to reach an agreement with the platform privately and buy low-priced chips in advance.

According to Dune data, MakeNow.Meme gradually died out just a week after its creation, ending up with no one paying attention. This may confirm that the core narrative and main logic of Memecoin is still 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 in the platform, its data is still very small compared with PUMP.FUN. Although it has natural traffic blessing, it seems that it has not done a good job in accepting and converting traffic. MetaData is not displayed before launch, the launch history cannot be easily checked, and the function lacks transparency.

Its data performance after its launch was also relatively mediocre. This may indicate that the traffic entrance has always existed, and how to convert users is the key.

Optimization of user experience

In addition to innovation in asset issuance methods and capital diversion, the optimization of user experience is also the reason for the large-scale explosion of Memecoin in this round.

TG Bot: Optimized for Web3 users

Behind this Memecoin super cycle, it is inseparable from the development of tools and on-chain robots, and their functions are rapidly updated through continuous iterations. From sniping and fixed investment to security inspection and correlation analysis. Super powerful tools and robots protect users' on-chain nuggets, pushing Memecoin to the public from the demand side.

During this period, for Memecoin transactions, tools have been expanded from mobile to web pages. For different segmented needs, there are both multi-chain compatible professional trading websites, such as gmgn.ai, Bullx, and Photon, as well as the convenient and fast TG bot. Such as Banana Gun, Tojan, Bonkbot, etc. 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 associated wallet analysis, Twitter monitoring, and security detection have become increasingly perfect, and the product business model has been verified. During this process, the number of TG Bot users is also increasing, with the highest number of daily active users exceeding 140,000, and the highest average daily transaction volume reaching nearly 500 million US dollars. Although there is still a long way to go compared to on-chain DEX, in Memecoin Super Affected by the 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, there are still many problems in Memecoin transactions, such as high security risks, multiple and scattered platforms, and difficulty in obtaining Gas. MoonShot, which is participated by Alliance DAO, the PUMP.FUN incubation team, solves 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 Apple Pay, credit card, PayPal and other legal currency deposit methods. This simplification of the social login and legal currency deposit process brings more new users and new funds to the Solana ecosystem, opening up the link between Memecoin on the chain and funds outside the circle. But currently, as the wealth effect weakens, MoonShot user activity is also gradually decreasing. How to effectively convert Web2 users is a persistent problem in the encryption field.

Major narratives change rapidly

Memecoin, as the target that best embodies the attention economic phenomenon in the encryption market, will narrate the development trend of program diversification under the market boom in 2024. Looking back at the past various gods, the themes and types of Memecoin narratives are different. But behind each type, there are specific market trends, community trends and capital operation models. Based on past rules and characteristics, we can roughly divide them into four types: event-induced derivative Memecoin, community-driven IP Memecoin, celebrity Effect-led concept Memecoin, cross-domain and multi-dimensional emerging Memecoin. Various types have cross-influence and are not completely independent.

Derivative Memecoin triggered by the event

Memecoin triggered by unexpected events can often gather extremely high attention at the beginning, and the flow and funds will quickly drive up the price of Memecoin assets during the process of attention. From its occurrence to rising, it often happens suddenly and is difficult to repeat. Its core feature is that it breaks out quickly and has high short-term multiples but insufficient sustaining power. After the attention fades, it is necessary to find other motivations. Targets such as BOME, SLERF, FIGHT, and BAN can all belong to Memecoins that are hyped by events.

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 token’s online transaction volume exceeded 200 million US dollars, and its market value reached the highest level after being listed on Binance in three days. 1 billion US dollars; SLERF, which subsequently adopted the same pre-sale mechanism, accidentally destroyed LP and airdrop reserved tokens due to DEV. The unexpected incident and subsequent spread made Meme Token prices are on an upward spiral.

However, if the Meme triggered by unexpected events does not receive sustained attention from the market, the price will converge and decrease. The market value of the Fight token, which was derived from Trump's slogan after his assassination, once exceeded 80 million US dollars. Now, due to lack of attention, the market value has dropped by more than 90%; Sotheby's Vice President Michael Bouhanna issued the art concept Meme Coin BAN on PUMP.FUN and listed it on Binance. After the highest point, the decline reached 85%.

Community driven IP Memecoin

IP-type Memecoins tend to have strong consensus, a long formation cycle and a long fermentation time, and can form a community after a long period of time. This type of community-driven IP Meme will show strong resilience in the fluctuations in 2024. It may go through a long-term washout from its emergence to new highs. Its core characteristics are high community consensus, strong CULT temperament, or strong resilience in repeated declines and rises. Similar products including Cult series POPCAT, SPX, APU and other MEW, NEIRO, MANEKI, etc. have formed IP targets.

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 of the "cat track", the market value reached a maximum of 1 billion. It was followed by another IP Maneki (Japanese Lucky Maneki). Cat) also referred to its mechanism of 90% liquidity pool and 10% community allocation, which caused short-term FOMO. Another Memecoin that embodies 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 token has a market value of nearly 50 million US dollars in two days since it went online. The token price is around the public chain. Questions and capitalization issues fluctuated repeatedly, and the hype of the asset continued from the chain to the exchange. Ethereum's lowercase Neiro finally won with the help of the community, with the market value reaching a maximum of 1.2 billion US dollars. In addition, as a new star of the super cycle, Murad’s 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 is due to its influence, the importance of community IP is the reason for its rebirth after repeated declines.

Memecoin, a concept dominated by celebrity effect

The performance of Memecoin is often bound to key figures. Celebrities can promote related concepts through specific Memecoins, and the tokens will further go out of the circle due to the celebrity effect. Its core feature is that currency price fluctuations are correlated with celebrity influence and the strength of the binding relationship. DOGE, PNUT, TERMINUS, etc. led by Musk, and others such as JENNER, MOTHER, etc. all belong to this type.

The behavior and impact of celebrity currency issuance are also different in this Memecoin super cycle due to 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 American Internet celebrity Kardashian family, rose 160 times in one night; the Meme currency MOTHER contract included in the tweet of the famous American female rapper Iggy Azalea on X exploded 30 times in 2 minutes, with the highest market value exceeded US$200 million. Musk’s concept currency is the focus of Memecoin players. Whenever he posts on social media about topics he is concerned about, such as Mars concept (TERMINUS), government efficiency department (DOGE), political concept (PNUT), etc., the relevant content on the chain The token will experience a short-term rise.

Emerging Memecoin across fields and dimensions

This round of Memecoin's super cycle hype is no longer limited to native Web3 content, but spans multiple fields and covers a wider range of themes and themes. Within each sector, there are many types of speculation targets, and they are quickly becoming popular, attracting attention from many fields. From TikTok traffic to new AI technologies, to cutting-edge subjects such as DeSci (decentralized science) and physics, Memecoin's hype has spread rapidly, and the fields involved have continued to expand, showing a trend of cross-border integration. Memecoin seems to have become a testing ground for emerging technologies and a testing ground for unproven tracks. The core features of this type of Memecoin are novel narratives and a wide range of exits. Similar to MOODENG, PESTO, CHILLGUY, GOAT, ACT, VIRTUAL, AIXBT, RIF, URO, etc. all belong to this type.

Moo Deng is a baby hippopotamus born in a zoo in Thailand. His meme-laden expressions have become the darling of social media such as TikTok and Instagram, and eventually became the emoticon of the year selected by Twitter. The market value of Moo Deng tokens on Solana once reached US$700 million. As the Memecoin with the smallest market value, it was successfully listed 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 strong Web 2 traffic, and their market value once exceeded US$500 million.

And then the hype for AI agents was equally intense. 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 US dollars in a short period of time. Later, AI Memecoins such as ACT and ELIZA quickly occupied the minds of players on the chain. ai16z, zerebro, virtual, AI Agent-related application coins such as aixbt have gradually developed into an ecosystem. After Binance announced its investment in BIO, DeSci (decentralized science) entered the public eye. The tokens RIF and URO in the Pump.Science platform, which were combined with experiments, began a new round of hype, with a market value of up to over 200 million US dollars.

Mainstream acceptance and adoption

Memecoin has been widely concerned by institutions and investors from its initial status as a marginalized asset. Its user base continues to grow, capital inflows continue to increase, and it is gradually gaining recognition and adoption in the mainstream market.

From the perspective of capital inflows, the liquidity of the market is clear and can be checked. Many institutions began to allocate Memecoin; major exchanges launched Memecoin one after another; market makers actively hoarded Memecoin. As of December 23, 2024, the overall market value of Memecoin has climbed to US$230 billion, and is showing a growing trend. According to a report released by Bybit in June, institutional investors increased their spot positions by nearly US$300 million in the first half of the year. Almost all crypto exchanges have listed multiple Memecoins. Binance has listed more than 20 Memecoins (including futures and spot) since 2024, and 80% of the tokens have experienced significant market value growth after being listed on Binance. Five crypto market makers including Wintermute, GSR Markets, Auros Global, B2C2 Group and Cumberland DRW all hold Memecoin, with positions worth hundreds of millions of dollars.

From the perspective of user growth, the first is a significant change in attitude. A16Z, which 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. Buterin also looked forward to the future of Memecoin and participated in MooDeng's publicity and charity work. Pantera partners also publicly expressed their recognition of Memecoin, believing it to be 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 are beginning to recognize the value of Memecoin. DeSci's scientific aid experiments, Dogecoin's ocean garbage cleaning plan, NOT's social rewards and red envelope functions, etc. are all creations for Web2 users to understand and accept Memecoin. of soil. According to statistics, from the beginning to the end of 2024, the number of Memecoin users worldwide has exceeded 50 million, and is still growing.

Conclusion

BTC, as the largest meme currency in Web2’s view, has been proven by the market to have exceeded 100,000 US dollars. As an early participant in Memecoin, are you a gambler seeking to get rich or a forward-looking investor? Where will Memecoin go in the end? Will it die out after being marginalized, or will it gradually develop and then enter the mainstream?

Cycles turn around, time tests the truth, and the answer is written in the future.