Summary
This article explores the current state and development characteristics of the Meme track in 2024 through observation and analysis, covering the popularity trends of Meme coins, the rise of platforms, methods of dissemination, and market strategies. The main points are as follows:
1. The Meme Coin Craze and Dissemination Model: The Meme coin market in 2024 shows a cyclical peak, especially in the early and second quarters. The spread of Memes resembles that of infectious diseases, leveraging social media and community dissemination, usually accompanied by exponential growth. New characteristics have emerged in the development model of 2024.
2. The Rise of Meme Platforms: Memecoin Launchpads are a significant innovation in this round, with platforms like Pump.fun and SunPump simplifying the creation and trading of Meme coins, attracting a large number of users. Each platform has its own characteristics in terms of user base, revenue, and ecological support.
3. Market Liquidity and Strategy: Memes have been viewed by major public chains and project parties as a "stronghold" for ecological development. This represents a major change in this round. Meme coins are seen as pioneers in the development of various blockchain ecosystems, attracting market attention and funds to promote subsequent ecological development. Investment strategies in the Meme track mainly involve grasping leading coins, trading volume, and market sentiment.
4. Future Outlook for Memes: With loose liquidity, direct participation from officials, and the addition of VC investments, the Meme coin market is expected to continue to explode in the second half of 2024, with more professional and transparent Meme play emerging.
New Characteristics of the Meme Track
Continued Heat, Cyclical
Unlike previous phases of Meme trends, the current cycle has seen the popularity of Meme coins reach unprecedented heights, especially from February to April in the first half of the year.
Whether it’s the average weekly increase of 6 times for 20 popular coins like PEPE, or tokens like WIF and BOME continuously breaking records for the shortest time to go live on CEX, all signal to cryptocurrency market investors: the Meme craze is back.
The spread of internet memes has many similarities to the spread of infectious diseases. Like a virus, memes rely on "hosts"—that is, user sharing and dissemination—to spread rapidly. Once a meme enters a popular social network, it can quickly spread by "infecting" a large number of users, especially when it triggers strong emotional responses or contains easily imitable elements. The ordi at the beginning of 2024 and the sol Meme craze in the second quarter reflect this characteristic.
This type of dissemination typically exhibits exponential growth, with only a few people initially exposed to the meme, but it can spread to a large audience in a short time. Additionally, meme dissemination is also influenced by network nodes—similar to super spreaders in infectious diseases, certain users with a large following can significantly accelerate the spread of memes, thereby expanding their influence. This dissemination model reflects the behavior of infectious diseases in many ways, relying on close connections and interactions between people. As shown in the figure below:
The spread of internet memes is similar to the spread of infectious diseases, as shown in this SIR model.
Red = Susceptible, Green = Infected, Blue = Recovered.
The Rise of Meme Platforms is a Major Feature of This Round
Memecoin Launchpads are a significant feature of the rise of the Meme track in this round. Emerging Memecoin launch platforms like Pump.fun and SunPump have attracted a large number of users by simplifying the creation and trading processes of Memecoins and achieving seamless integration with mainstream blockchains. They each have unique characteristics in terms of user targeting, daily issuance, revenue, project success rates, ecosystem integration, market promotion, and community participation.
As the crypto industry continues to evolve, the Memecoin sector is filled with opportunities and challenges, making innovation particularly important. The key to the success of Memecoin platforms lies in creating products with unique selling points that combine cultural trends and technological innovation.
Launchpad Comparative Analysis
Image Source: Tiger-Research
Target Users
In terms of the user base of two typical Meme platforms, the early platform Pump.fun primarily targets Western users, while SunPump, led by Sun Yuchen, is more popular in Asia. At the same time, SunPump combines marketing from Sun Yuchen and his team on media like Twitter, performing notably on TRON.
Platform Revenue & Fees
SunPump launched later, but as of the end of August, its revenue was approximately $567K, issuing about 7,500 Memecoins daily. Pump.fun generates around 7,000 daily, which is comparable to SunPump. Both platforms charge a 1% transaction fee.
Ecological Support Situation
Pump.fun is a third-party development that initially launched on the Sol chain and integrated into the Base chain around May-June this year, later integrating into the Blast chain. In contrast, SunPump primarily operates on the TRON blockchain, supported by its payment system (which has a large number of users paying with USDT) and exchange infrastructure.
Other Meme Platforms
Image Source: Rootdata, Chain Catcher
In addition to Pump.Fun and SunPump mentioned above, there are various niche launchpads, such as Memehub.ai, which is an AI-based launch platform, wonton.fun, an exclusive launch platform on the Ton chain, and Satspumpfun, which is a launch platform for the BTC ecosystem.
Their supported public chains and functionalities vary, as shown in the table above.
Typical Launchpad-- Sunpump
SunPump's Performance Outperforms Most Meme Launchpads
TRON founder Sun Yuchen pointed out that although the Meme coin market is still in its infancy, TRON is implementing a long-term strategy focused on building a solid infrastructure and continuously optimizing user experience to meet the needs of different users.
Sun Yuchen mentioned that SunPump, as the Meme launch platform on the TRON chain, along with TRON's payment network and DeFi layer, constructs a three-tier system, with SunPump being an important part of it.
First, a widely recognized stablecoin payment network, TRON has surpassed Ethereum and Solana in daily revenue, becoming a leading stablecoin payment platform.
Second, the DeFi layer provides stable investment returns.
Third, SunPump, which combines mature DeFi technology and blockchain performance, focuses on high-risk, high-return investment opportunities.
SunPump has the following advantages:
1. Strong Team: The SunPump team has a deep understanding of the Meme market, accurately grasping investor needs and predicting potential user groups, ensuring leading product quality.
2. Liquidity Support: The TRON platform has issued over $60 billion in stablecoins, with more than 2 million active users daily, far exceeding Solana. TRON's large user base and high trading volume provide strong liquidity for the Meme market.
3. Community Support: SunPump has received strong community support, especially from Asia, laying a solid user foundation.
With the continuous launch of SunPump tokens, the number of active addresses on TRON reached 1.9 million in August, while Solana had 1.09 million active addresses, demonstrating TRON's clear advantage in this field.
Meme Ecology and Liquidity
The author believes that the performance of Memes in this round is quite eye-catching, capturing a significant amount of market attention. One of the biggest characteristics is that various market participants have combined liquidity with the Meme ecology, using Memes to activate and lead market enthusiasm, liquidity, and ecological pioneers. This is mainly reflected in the following two aspects.
Memes have been regarded as the "stronghold" for ecological development by major public chains and project parties. This is one of the biggest changes in this round. From the beginning, when the founder of Sol was dressed in a silly dragon costume, to the recent pump.fun, and to NOT's "massage gun track," all have been led by Memes. Memes are akin to hook products in the web2 product matrix. They can first capture the market and settle funds through Memes, which are then absorbed by foundational infrastructure in the ecosystem, such as DeFi and lending products. Attracting funds through Memes and then launching utility products is one of the strategic paths for ecological parties and project parties in this round.
The time difference in dissemination provides liquidity with time. There exists a time gap between the perceptions of traditional outsiders and web3. A small number of people have entered the cryptocurrency circle, and the first thing they encounter is the high-yield wealth creation myth represented by the Meme sector. High volatility means they have the potential to achieve high returns in a short time. Retail investors who can enter the circle may be attracted by this quick wealth opportunity, and many Meme coins are priced lower than Bitcoin, allowing retail investors to purchase a large number of tokens with relatively small investment amounts. For retail investors with limited budgets, this low-threshold investment is more appealing.
Meme as a Case Study for Ecological Liquidity
As mentioned above, this round of Memes has been seen as the vanguard of liquidity by major chains, project parties, and ecological parties, with numerous cases. For example:
- Linea Chain: $Foxy.
$Foxy is backed by the official foundation of the Linea chain and is a Meme initiated by the parent company of MetaMask. Although there was not much disclosure in the early stages, the driving force behind it is the Linea chain and its related parties. Foxy combined KOL round financing and promotional efforts, achieving about 40 times returns on its first day of trading.
- Base Chain: $Degen, $Enjoy, $High.
The issuance of Memes on the Base chain is countless. Among them, $Degen, which was popular in February-March 2024, is the most representative. Degen started as a community Meme project with 100% Meme attributes. As the attributes of the Degen high-hat gentleman became more prominent, it was later endowed with utility by the official app as a tip token for the Farcaster social platform, but it still retained its Meme attributes, equivalent to 80% Meme attributes + 20% utility attributes. Not to mention the subsequent support from Farcaster and various ecosystems for Degen. As for $High, it is the Meme of the Zora public chain.
There are many other cases, listed as follows:
Manta Chain: Announced a $10 million Moon Mission Meme Grants funding in June 2024.
Avalanche Chain: $COQ, $KIMBO, $TECH, $GEC. The Meme liquidity strategy of the Avalanche chain was mainly issued in the first half of 2024, supported by the Avalanche official foundation.
Fantom: Launched the Meme season for Sonic Memecoin starting in June.
zkSync: Meme symbol Zeekcoin $MEOW.
Distribution of Main Types of Meme Projects in 2024
Whale Coins
BOME/ SLERF/ MEW/ MANEKI …
The author categorizes various large pool coins as whale coins, characterized by large pools and rapid price surges. The capacity for investment is not only large but also has high leverage, but often the high market value makes it difficult for people to enter.
Hot Topic Coins
GME/ BODEN/ TREMP/ DJT/ NCAT …
Hot topics, such as the actions of high-profile figures like Musk, Trump, or Roaring Kitty, often correspond to meme coins on the chain. However, these types of meme coins can also experience price fluctuations due to various news events. For example, the DJT Trump coin attracted many speculators due to rumors that Trump's son Barron Trump was involved, but it also plummeted due to revelations from notable figures like Zach XBT and GCR. Similarly, $GME experienced frenzied speculation due to Roaring Kitty's return post, but soon after, it crashed due to Roaring Kitty's live video being uninformative.
Community Coins
POPCAT/ MICHI/ SC/ NEIRO
The author believes that these community tokens, often featuring cats and dogs, are high-risk, high-reward types of memes. They have high odds because they often have a sufficiently long bottoming period to accumulate cheap chips, but due to insufficient scarcity, they can easily fail. Whether the token's avatar is eye-catching is the first key point, but more importantly, the community atmosphere matters.
Additionally, the author believes that community-type meme coins can gradually gather retail consensus and drive prices up in a favorable market environment, but when the market environment is poor, the decline can be rapid due to factors like dispersed holdings.
Celebrity Coins
MOTHER / RNT / PAJAMES
Celebrity coins have recently emerged as a trend on the SOL chain, but most celebrities are not interested in managing tokens long-term; many are just fleeting trends. However, if a celebrity with significant external traffic is willing to manage it, the token can have great potential. Currently, the most successful celebrity coin is $MOTHER, promoted by rapper Iggy Azalea, who leverages her millions of fans to promote her token and actively interacts with the community, which has helped sustain its popularity for so long.
Others
WEN/ BONK/ WIF …
In addition to the above, there are many other types of hot meme coins, such as $WEN launched by the Jupiter team, or the rumored $Bonk launched by the Solana Foundation to revitalize Solana, both of which reached high market values due to the involvement of legitimate teams. Furthermore, $WIF, the largest market cap among Solana Memecoins and a barometer for Solana Memecoins, is the hardest to categorize; it started as a community coin but later received capital attention, thus skyrocketing to become one of the strongest assets in this round of the bull market for Memecoins.
Outlook for the Second Half of the Meme Track
Altcoin Index at Historical Bottom
The expected explosion of Memes in the second half of 2024, in addition to the aforementioned support points, is also due to the current macro cycle. The Altcoin Season index is at 35, which is another important reason the author believes the Meme track will return in the second half of the year.
Official Participation and Consensus in the Meme Track Has Formed
With the launch of platform Memes, ecological Memes, and various Meme launchers, the Meme track has not only gained favor from retail investors but has also received direct recognition and participation from officials. From May to August this year, various officials have emerged to create launch platforms and announce Meme tokens for this ecological niche. Compared to the previous period, the consensus in the Meme track has become increasingly strong.
As a vanguard, Memes are expected to contribute to ecological construction and project development in four main areas:
Continued establishment of major Meme foundations, support plans, or community plans to foster the development of Memes in this ecosystem through innovation funds;
The entry of VC investors; starting in the second half of 2024, many VCs have announced their participation in Meme infrastructure investments, transitioning from resistance to VCs embracing Memes;
The gameplay of Memes will become more professional and transparent.
After liquidity creation, there will be more supporting units, meaning that secondary products based on Memes will see new development. For example, Meme management tools, meme image creation and secondary dissemination platforms, and secondary creation tools based on Memes will also experience a wave of development.
Liquidity Tends to Be Loose, Favorable Meme Environment
It is expected that in the second half of 2024 and the first half of 2025, interest rates will trend downward, and we are moving towards a more relaxed macro environment. Meme coins, due to their small market capitalization, high recognition, and low participation thresholds, are expected to achieve growth.
About HTX Ventures
This article was written by the research team under HTX Ventures. HTX Ventures is the global investment department of Huobi HTX, integrating investment, incubation, and research, aiming to identify the best and brightest teams worldwide. As an industry pioneer, HTX Ventures has over 11 years of experience in blockchain development, specializing in identifying cutting-edge technologies and emerging business models in the field. To promote growth within the blockchain ecosystem, we provide comprehensive support for projects, including financing, resources, and strategic advice.
HTX Ventures currently supports over 300 projects across multiple blockchain sectors, with some high-quality projects already trading on Huobi HTX. Additionally, as one of the most active FOF funds, HTX Ventures invests in 30 top global funds and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build the blockchain ecosystem. Visit us.
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Disclaimer
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Reference
Tiger Research: https://www.tiger-research.com/
Chain Catcher: https://www.panewslab.com/zh/articledetails/uwls3xdn.html
$Foxy situation: https://twitter.com/FoxyLinea
Manta chain meme plan: https://x.com/MantaNetwork/status/1803440654426710098
Avalanche chain community meme support plan: https://x.com/AvalancheFDN/status/1768262658346897428
Rootdata: https://www.rootdata.com/zh
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