As of November 10, the data statistics for BTC, ETH, and TON on the TrendX platform are as follows:

The discussion count for BTC last week was 20.53K, an increase of 21.23% compared to the week before; the price last Sunday was $81,357, up 19.2% from the Sunday before.

The discussion count for ETH last week was 5.75K, an increase of 50.03% compared to the week before; the price last Sunday was $3,203, up 27.1% from the Sunday before.

The discussion count for TON last week was 786, a decrease of 2.48% compared to the week before; the price last Sunday was $5.42, up 0.83% from the Sunday before.

Just today, Binance launched the AI Meme projects ACT and PNUT. As soon as the news broke, the ACT token skyrocketed by about 10 times, setting a new record for the increase of Meme tokens listed on exchanges, bringing a bit of Meme shock to the industry. It seems that exchanges are shifting their focus towards Meme.

This month, Binance Research released a report titled "Understanding the Rise of Meme Coins," which indicates that since 2022, the total market capitalization of Meme coins has increased from 4% to 11% in 2024, nearly tripling in just two years. According to a report released by Bybit in June this year, institutional investors increased their holdings in spot Meme coins from $62.5 million to $204.8 million between February and March, peaking in April with total holdings reaching $293.7 million, an increase of nearly 500%. The wind of Meme coins is growing stronger, with DOGE, SHIB, PEPE, GOAT… the suddenly popular Meme coins have made many people wealthy while leaving others puzzled. This article will interpret why Meme coins are so popular and analyze the current state of their market.

The Rise of Meme Coins

Meme coins—cryptocurrencies based on internet memes. They are usually created by developers or enthusiasts, inspired by popular memes or internet culture, and spread widely through channels such as social media and online forums.

From the definition of Meme coins, we can see that, unlike other crypto assets, Meme coins may be created for humorous and entertainment purposes. These Meme coins do not have specific uses or practical application scenarios; they inadvertently provide investment opportunities based on consensus while stimulating people's sense of humor. This foundational concept also lays the groundwork for the trend of Meme coins this year. Here are the reasons for the sustained popularity of Meme coins this year:

1. Financialization of Internet Culture

The viral spread of Meme coins and their community-driven appeal have extended into the financial realm through cryptographic technology, achieving the financialization of Meme coins. They have transitioned from a form of internet culture to being assigned value after financialization, allowing for buying and selling transactions, thus becoming a financial tool.

As one of the basic conditions for financialization, these Meme cultures have gained consensus in the "market" of the internet, which is also one of the biggest characteristics of Meme coins—lack of practicality but high attractiveness: Meme coins are based on internet culture, memes, or trends, usually lacking clear utility or intrinsic value. They represent a newer, fairer, and more accessible wealth creation opportunity, with no pre-mining, team allocation, or venture capital distribution; all tokens are equally available to all participants at the time of issuance.

2. Impact of the Global Macroeconomy

This is a butterfly effect caused by the dollar. During the COVID crisis, global central banks engaged in unprecedented monetary easing, leading to a total global money supply increase from $81 trillion to $102 trillion, an increase of over 25%. This phenomenon of "massive monetary easing" has made high-risk investments more attractive, with funds beginning to flow into high-risk, high-return investment tools, including Meme coins.

The rapid expansion of global money supply has also triggered inflation and rising commodity prices worldwide. The inflation rate in the U.S. reached 7% in 2021 and 6.5% in 2022. Faced with currency devaluation, rational actors have invested funds into assets deemed to have long-term value, and Meme coins, as an emerging asset class, have attracted some excess capital.

3. "Quick Traffic Spread Strategy" of Major Public Chain Meme Coins

Meme coins are seen as the "outposts" of ecological development, acting as pioneers in the development of various blockchain ecosystems by attracting market attention and funds, thus promoting subsequent ecological development. Moreover, their spread has a characteristic of cyclical high heat; Meme coins in 2024 are showing cyclical high heat, spreading like an infectious disease, usually accompanied by exponential growth through social media and community dissemination.

These factors work together to drive the explosive rise of Meme coins in 2024. Their emergence is not only a reflection of changes in the financial market but also a result of the younger generation's dissatisfaction with the traditional financial system and their search for new investment opportunities. At the same time, the dissemination model and value proposition of Meme coins have attracted significant attention and participation from numerous investment institutions.

Mainstream Institutions' Views on the Meme Coin Market

It can be said that since this year, Meme coins have increasingly become an important focus for institutional investors. Starting in the second half of 2024, some VCs have announced investments in Meme coin infrastructure, marking a shift from previous VC opposition to gradual acceptance of Meme coins.

1. Binance

As early as 2023, Binance Labs invested in several Meme coins, and in 2024, it continues to maintain enthusiasm for the Meme coin market. In January, it invested in the native ecological token MEME of Memeland, which was included in Binance Launchpool in October 2023. Subsequently, Binance Labs supported the development of its Whyanelephant project.

2. Coinbase

Coinbase Ventures also began supporting DOGE as early as 2018, although the specific investment amount was not disclosed, but the project has garnered significant community support. In 2021, Coinbase Ventures invested in SHIBA, and its parent company Coinbase announced at the end of 2023 that it would add Bonk to its list of tradable assets. Moreover, after the popularity of GOAT, Coinbase CEO Brian Armstrong proposed setting up a crypto wallet for Truth Terminal, reflecting their ongoing focus on the Meme market.

3. a16z

As a well-known mainstream venture capital institution, a16z was initially unfriendly towards the Meme coins that seized the market. Several leaders at a16z have tweeted harsh criticisms of Meme coins, claiming they undermine the long-term vision of cryptocurrencies, bluntly stating that this is a casino in the crypto world.

However, recently a16z has changed its critical stance from earlier this year and has frequently participated in Meme events. First, a16z co-founder Andreessen Horowitz tipped $50,000 in BTC to the bot account Truth Terminal on X, which led to the recent surge of the goat coin GOAT, propelling it from an obscure project to a shocking historical market cap of $850 million, while Truth Terminal became the first AI millionaire, also promoting the development trend of AI + Meme.

Strong Performing Meme Coin Projects This Year

Meme coins are the "get-rich-quick concept" we hear about every day. Compared to other sectors in the crypto market, the Meme coin sector clearly exhibits a strong wealth effect, such as SHIB rising 500,000 times and DOGE rising 400 times; these wealth creation myths have attracted countless flows and funds into the cryptocurrency industry. However, the Meme coin market is not just a flash in the pan; the wealth creation myths of this wave are still continuing.

1. DOGE (Dogecoin)

As one of the pioneers of Meme coins, DOGE has always been known for its community support and market performance. In 2021, DOGE gained mainstream popularity, growing from a market cap of $700 million on January 1 to $88 billion in early May, increasing over 100 times in just four months.

Currently, DOGE's market cap is around $36 billion. Of course, when mentioning the DOGE token, one cannot overlook the huge traffic and influence brought by Elon Musk, who has repeatedly expressed his fondness for DOGE on Twitter. Recently, due to his support for Trump winning the U.S. election, the price of DOGE tokens rose 140% within three months, with a 70% increase over seven days. The influence of such a world-class tech celebrity has a significant impact on the development of DOGE.

2. PEPE

The PEPE token was launched in April this year, and in less than a month, the number of token holder addresses reached 100,000, an unprecedented rapid growth at that time. Looking at the token price, the increase on the 22nd reached 120,000 times, with the price rising from ten zeros before the decimal point to five zeros. This not only attracted significant market attention but was simply boiling hot.

The success of PEPE is naturally a combination of multiple factors. After witnessing the massive wealth effect brought by the crazy surges of Dogecoin and SHIB, people have been searching for the next MEME coin. The emergence of PEPE and its rapid growth ignited people's FOMO emotions, fearing to miss out on another opportunity for a hundredfold or thousandfold MEME coin. Thus, the faster the initial growth, the more buyers there are, creating a self-reinforcing process.

In addition, exchanges played a significant role in the development of PEPE. For example, the PEPE token was listed on MEXC exchange in just six days and on Binance, the world's largest cryptocurrency exchange, in 22 days, a privilege not afforded to many other mainstream tokens.

3. Degen

Degen is a representative Meme project on the Base chain, which was very popular before PEPE emerged in February-March this year. Degen started as a community Meme project, fully 100% Meme in nature. As the attributes of Degen's high-hat gentleman became more prominent, it was later endowed with utility by the official app, serving as a tip token for the Farcaster social platform, but it still retains its Meme attributes, equivalent to 80% Meme attributes and 20% utility attributes. The subsequent support from Farcaster and various ecosystems on Base propelled Degen and contributed to the development of the Meme market, laying the groundwork for PEPE.

4. GOAT

AI Meme coins have creatively emerged, with the fundamental reason for the rise of GOAT coins being the combination of AI and Meme coins. This combination has created a novel concept of AI autonomously issuing tokens, something that had never been attempted before, making GOAT coins appear coherent and native against the backdrop of a market cap in the tens of millions. Of course, without a certain level of traffic support, it would be difficult for it to gain visibility. GOAT initially entered the public eye thanks to the influence of a16z, with its founding partner Marc Andreessen tipping $50,000 worth of Bitcoin, which brought initial attention and trust to GOAT coins. The launch of Moonshot also provided convenience for fiat purchases, causing its price to soar and fully enter the FOMO rhythm. Subsequently, GOAT's market cap soared, reaching a high of $600 million on October 20, with crypto big names like Arthur Hayes even predicting that GOAT would reach a market cap of $1 billion.

5. ACT

ACT Meme is a cryptocurrency that combines AI technology with blockchain, aiming to create an ecosystem themed around "AI and Meme." The project, named "Act I: The AI Prophecy," is built on the Solana blockchain and provides users with an equal and collaborative digital interaction experience through its innovative AI-driven mechanism.

Conclusion

The phenomenon of Meme coins not only showcases the integration of internet culture and the financial sector but also marks a new trend in the combination of Meme and AI. As an indispensable part of the cryptocurrency sector, Meme coins continue to attract the attention of global investors with their unique community-driven and cultural symbolism. With the involvement of AI technology, the innovative potential and market influence of Meme coins will further expand, bringing new vitality and possibilities to the cryptocurrency market. In the future, Meme coins will continue to play an important role in the cryptocurrency field, driving the development and transformation of the industry.

Research Report

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