Interpretation of Binance Research Report: From a joke to a market value of 100 billion, how did Meme become popular?

Author: Binance

Compiled by: Deep Wave TechFlow

Main points

• Memecoins are a class of cryptocurrencies inspired by internet culture and humor that quickly became popular due to their low prices, the possibility of making quick profits (but with high risks), and their appeal to younger generations.
• In addition to financial motivations, Memecoins have gradually become a cultural symbol, with users purchasing these tokens to express identity, belonging, and even support some larger social idea.
• Although Memecoins face challenges in terms of sustainability and long-term value, some projects are experimenting with innovative applications, combining entertainment with real-world impact, and exploring new development directions.

Memecoin, a cryptocurrency inspired by internet culture and humor, has been making waves in the crypto market recently. Unlike “traditional” cryptocurrencies that aim to solve real-world problems, Memecoin relies on pop culture resonance, community momentum, and meme-like virality. Their story goes back to 2013 with the creation of Dogecoin (DOGE) – a crypto asset originally created as a joke. Subsequently, the rise of Shiba Inu (SHIB) in 2020, and the emergence of a large number of similar projects in the following years, further promoted this trend.

Although Memecoins have been around for many years, their popularity has reached new heights this year. In November 2024, both trading volume and market capitalization soared, exceeding market expectations. This phenomenon also hints at a fundamental shift in people's perception of these "alternative" assets. So, what is driving the rise of Memecoin? Let’s find out!

financial motivation

What are the key reasons behind Memecoin’s popularity? The most direct explanation is naturally its impressive high-yield potential, which is closely related to the intensity of its price fluctuations. However, upon in-depth analysis, we will find that this phenomenon also reflects deep changes in the global economy, especially catalyzed by Internet culture.

A microcosm of the economic environment

How do people respond when the real value of their wages shrinks every year? For many, this is not a hypothesis but a fact of life. In the context of inflation continuing to erode purchasing power and the cost of living soaring, traditional financial instruments are becoming increasingly powerless. Savings accounts offer meager returns, and investment returns in traditional markets are too slow to cope with today's increasingly pressing economic pressures.

As a result, more and more people – especially the younger generation – are turning to alternative assets. This shift is not just an economic choice, but also a symbolic expression. They regard this behavior as dissatisfaction and protest against the traditional economic system, believing that the traditional system can no longer meet the needs of the times. For Internet natives, Memecoin is more like a statement of challenge and attitude towards the status quo.

The temptation of “getting rich overnight”

In the current financial climate, Memecoin offers a curious alternative. Their low barriers to entry and high return potential attract investors disillusioned with traditional finance. Compared to 10% annual return, which is already an excellent performance in traditional finance, Memecoin’s price fluctuations can double or halve in minutes. This huge contrast has attracted many young investors, who hope to realize their dream of "getting rich quickly" through Memecoin, although this opportunity is very slim.

Unlike the older generation who are more inclined to buy lottery tickets, the younger generation has already seen clearly the probability of winning the lottery. And although Memecoins are extremely risky, they are seen as another possibility to achieve financial freedom. This seemingly within reach opportunity has driven more and more people to join in, further fueling the popularity of Memecoin.

Pop culture and the power of community

While financial motivations were the driving force behind Memecoin’s rise, its real lasting appeal stems from the power of its culture and community.

status symbol

Can light-hearted humor and wealth dreams have both? The charm of Memecoin lies in its deep integration with the culture of the Internet community. For many people, purchasing Memecoin is not just an investment, but also a manifestation of a sense of participation. It’s a way to express your identity, support an idea, or join a larger community.

Take Chill Guy Memecoin as an example. It is influenced by the popular meme "Just a Chill Guy", and its laid-back attitude towards life attracts many people who agree with this value. Buying this token is not just for investment, it is more like putting a stamp on your "laid-back" personality Labels are like expressing your fashion attitude through clothing.

What’s special about Memecoins is their community’s admiration for the concept of “hodling” (holding for a long time in cryptocurrency circles). Even if the price soars, everyone still insists on holding it. This behavior perfectly explains the meme itself. Relaxed and carefree. On the other hand, "paperhanding" (selling quickly when prices fluctuate) is considered contrary to this core philosophy and seems to mean that you are not truly a "laid back person".

For many investors, the appeal of Memecoins lies not just in the possible gains, but in being part of a real and fun cultural movement. Memecoins like these often bridge the gap between financial goals and cultural identity, turning investments into symbols of identity and belonging.

Entertainment Consumption: The Other Side of Memecoins

For some, the appeal of Memecoins lies not in the narrative or potential earnings, but in the sheer entertainment experience. This type of investor sees Memecoins as a relaxing pastime—a way to buy excitement with money, even if it comes with risk. As someone described it: "Spending $100 on Memecoins is like buying an amusement park ticket." In this mentality, investing in Memecoins is seen as paying for entertainment, just like buying a movie ticket or an amusement park ticket. .

In fact, many people are entertained by Memecoins' violent price fluctuations, and they often joke that watching the prices skyrocket and plummet is a visual feast in itself. The process of deciding when to buy and sell adds more excitement to the experience - like the ups and downs of a roller coaster, but without the physical shaking. Memecoins combine humour, risk and unpredictability to bring a unique, playful and adrenaline-filled experience to the world of finance.

ticket to a revolution

In some cases, purchasing Memecoins is not just a way of self-expression but may also be a statement of values. Some believe Memecoins have the ability to unite people around a common goal, turning simple acts of investment into symbols of collective belief.

The story of Gen Z QUANT is a prime example. On November 20, a 13-year-old developer launched the QUANT token through Pump.fun, a popular Solana-based startup platform. He sold 51 million tokens at a price of 128 SOL, eventually cashing out $30,000 during the live broadcast, and then disappeared. This behavior was considered a "rug pull." The bold move sparked widespread outrage in the crypto community. However, buyers quickly rallied around and turned QUANT into a symbol of the fight against fraud.

This collective action caused the price of QUANT to surge by 71,386% in just six hours, reaching a peak of $0.07876, and the trading volume soared to $213.7 million. For those who buy in, holding QUANT isn’t just about the money, it’s about saying “no” to deception, changing the narrative, and sending a clear message: zero tolerance for fraud.

Rather than become the butt of jokes after being tricked by a 13-year-old, the community chose to fight back by turning him into a meme. At the peak of the price, the $30,000 he cashed out would have been worth more than $4 million had he not withdrawn it. This event demonstrates the potential power of digital assets, where communities and common goals can unite to defy expectations and create incredible results.

Memecoins Ecosystem: The Power Behind It

Behind every viral phenomenon, there is a strong platform and community network. This year’s Memecoins craze is no exception. At the heart of this craze is a Solana-based startup platform called Pump.fun. It has become the preferred platform for the issuance and trading of Memecoins, and its influence has driven the activity on the Solana chain to unprecedented heights. On November 21, Solana’s daily fees reached a staggering $14 million, exceeding Ethereum’s average daily fees for 14 consecutive days.

In addition, platforms like Coinbase’s Layer-2 blockchain Base are gradually emerging, providing a stage for emerging and experimental tokens. On X (formerly Twitter) and Discord, the active Memecoins community has injected vitality into this ecosystem. Enthusiasts here share memes, exchange investment strategies, and enthusiastically promote their favorite coins. These platforms and communities have jointly promoted Memecoins from a joke existence to a force that cannot be ignored in the crypto world.

The future of Memecoins: a joke or a legitimate asset class?

As Memecoins continue to grow, one has to wonder: will they just be a passing fad, or can they evolve into a long-lasting asset class?

Just a financial joke?

Memecoins are highly volatile in price and their value relies more on hype and market sentiment than actual use. Prices can double in minutes or halve in the same amount of time. This high-risk, high-reward nature is especially dangerous for novice investors. Before you "blindly enter", be sure to do your homework (DYOR) and develop an effective risk management plan to reduce potential losses.

Many Memecoins lack a clear practical use or long-term development plan, which makes it difficult for them to maintain their popularity. Their initial appeal often comes from cultural resonance, market hype, and community enthusiasm, but these short-term drivers rarely support long-term value. Once market hot spots shift, funds may flow to projects with clearer utility or growth potential, causing demand for Memecoins to drop and prices to fall, ultimately making the tokens in the hands of investors worthless.

A "legitimate" joke?

While most Memecoins may not survive long-term due to a lack of practical use, a handful of projects have begun to explore entirely new directions. They no longer rely solely on hype, but try innovative applications to redefine the value of Memecoins.

For example, the RIF and URO projects have ventured into the field of decentralized science, allowing token holders to obtain intellectual property (IP) for experimental results. This innovative model marks an evolution of Memecoins, paving the way for it to move from its entertainment origins to practical applications. The rise of this trend is inseparable from the promotion of Pump.fun, which is the platform that has helped projects like RIF and URO gain market attention. This shift shows that Memecoins are trying to combine fun with real-world impact.

Summarize

Memecoins have long transcended simple jokes or short-lived trends, they are increasingly becoming a combination of financial opportunity and cultural expression. While the current volatility of these assets remains a defining feature, some projects are trying to combine fun with practical use to ensure they remain competitive in an ever-changing market. If you want to learn more about Memecoins, a dynamic asset, you can refer to the rich resources provided by Binance Academy to help you make more informed investment decisions.