In-Depth Interpretation of Memecoin: From Mockery to 100 Billion Market Capitalization

Overview

1. With the conclusion of the US elections and Bitcoin surpassing $100,000, Memecoin is ushering in a new wave of popularity;

2. Memecoin was originally not focused on speculation. The birth of DOGE reflects the original intent of memes: straightforwardness, humor, and grassroots spirit, with a significant investment in charity.

3. Memecoin is gradually becoming a vehicle for expressing support and belief;

4. Currently, while the number of Memecoins is surging, it also shows new development trends.

5. Investing in Memecoins requires a comprehensive consideration of various factors such as narrative, community, marketing, risk, market performance, and capital trends.

Introduction

Meme culture is everywhere in the internet age, but transforming pop culture into currency and assets, and achieving significant increases, is a phenomenon unique to Web3. In 2024, when Bitcoin surpassed $100,000, Memecoin triggered a symbol carnival in the crypto market.

Data shows that Memecoin performed exceptionally well in 2024, with an index increase of over 370%, leading other crypto sectors. The total market capitalization of Memecoin has exceeded 139 billion USD, with 10 projects having a market capitalization of over 1 billion USD. New projects like PNUT reached a market capitalization of 1 billion USD in just 11 days, much faster than DOGE's 1487 days.

Memecoins have also influenced the ecology of public chains. From January to November 2024, Solana and Base became the focus of investors. Base rapidly rose due to its Memecoin features, leading various metrics compared to other L2 projects.

Despite being controversial, Memecoin represents two extremes of the Web3 world: on one hand, it is a simple yet highly appealing narrative of wealth and a symbol of rebellion; on the other hand, it reinforces external negative perceptions of the crypto world. This article will outline the development of Memecoin and attempt to analyze its multifaceted nature.

Part One: The Development Stages of Memecoins

Memecoin is the tokenization of internet culture or events on the blockchain. Reviewing its development history, it can be divided into three stages:

Phase 1: The black humor represented by DOGE

DOGE has established the cultural tone of Memecoin: straightforward, humorous, and grassroots. Created in 2013 by two engineers, it combines popular internet memes with cryptocurrency. DOGE does not rely on grand visions or technological breakthroughs, but instead aims to "become the most fun token" and spreads virally on social platforms.

In 2021, Musk's support propelled DOGE to fame, making it the best-performing asset. Early Memecoins were often animal-themed, with a charitable intent, eschewing technical jargon and focusing on dark humor, primarily issued on Ethereum.

Phase 2: The Expression Carrier of Web3 Culture

The types of Memecoins are gradually diversifying, expanding from animal coins to celebrity coins, political coins, and more. A new trend is that Memecoins have become a medium for expressing support and beliefs. At the same time, Solana has become the main platform for Memecoins due to its high performance and low fees.

Representative projects include:

• BONK: Launched after the collapse of FTX, aimed at revitalizing the Solana ecosystem.
• BOME: With the vision of perpetuating Meme culture
• Political themed Memecoins: such as TRUMP, MAGA, etc.
• Celebrity-related Memecoins: such as GME, KITTY, etc.

Phase Three: New Modalities of Memecoin

With the emergence of token launch platforms like Pump.fun, Memecoins are showing two trends:

1. A large number of low-quality Memecoins have emerged.
2. Combine with new technologies such as AI to attempt to give practical application value.

For example:

• DEGEN: From community token to L3 public chain project
• Floki: Expanding into NFT, DeFi and other fields
• LUM, GOAT: Memecoins created by AI agents.

Part Two: The Multifaceted Nature of Memecoin

Anti-authoritarianism and Technological Nihilism

Memecoin embodies a deconstruction of authority, but it also raises concerns that the technological innovations of Web3 may be overlooked.

High Returns and Bubble Risks

What attracts investors to Memecoins is the possibility of getting rich quickly, but 97% of projects ultimately fail, with an average lifespan of only 1 year.

Attention Economy and Transience

Memecoins rely on attention, but the instability of that attention can also lead to their value collapsing rapidly.

Part Three: How to Identify Quality Memecoins

When evaluating Memecoins, you can pay attention to the following aspects:

1. Narrative: Is it attractive and shareable?
2. Community: Activity and Potential
3. Marketing: Promotion Ability and Celebrity Effect
4. Risk: Contract Security
5. Market Performance: Liquidity, Chip Distribution, etc.
6. Capital flows: Pay attention to the behavior of "smart money"

Investment advice:

• Familiar with relevant tools
• Control risk
• Diversify investments moderately

Conclusion

Memecoin is like a carnival in the crypto world, challenging the traditional in a humorous way and becoming an undeniable force. In the second half of 2024, the combination of Memecoin with the Web3 ecosystem and AI technology shows new potential. We look forward to Memecoin bringing more innovation to Web3 beyond its rebellious spirit.