Overview of the 2024 Memecoin Super Cycle

Author: shaofaye123, Foresight News

Memecoin is an unavoidable theme in 2024, with classic meme coins like Dogecoin and Shiba Inu averaging over 5 times their increase in 2024, while emerging meme coins like MooDeng and PNUT have even higher investment returns, reaching hundreds of times. The oversupply of tokens and the high circulation and valuation of VC coins have made this bull market a non-interchangeable one. Therefore, Memecoin has been exceptionally active in this round, becoming an indicator of on-chain liquidity, a whistleblower for new narratives, and a thermometer for market sentiment.

This year, we witnessed the process of Memecoin transitioning from frenzied speculation to gradually entering mainstream culture and consensus effects, leading to a great transfer of wealth. In this process, the issuance methods are constantly innovating, asset types are rapidly changing, and mainstream acceptance and adoption are driving its vigorous development. Each transformation hides opportunities for wealth accumulation by hundreds or thousands of times. Looking back at the 2024 Memecoin super cycle, let us witness the transformations and opportunities of this year together.

Infrastructure Continues to Improve

The prosperity of this round of Memecoin super cycle is inseparable from the continuous improvement of infrastructure. Whether it is the innovation of B-end underlying issuance methods or the optimization of C-end user experiences, both have provided conditions for the rapid influx of funds and the expansion of users in Memecoin.

Innovation in Issuance Methods

Traditional Memecoin issuance methods are similar to ordinary tokens, but as Memecoin is part of the attention economy, market hotspots change rapidly. Currently, the asset issuance cycle is long and complex; user preferences and speculation rhythms on major public chains vary. These factors make it difficult for market attention and liquidity to concentrate, making it challenging to rapidly push up asset prices in the short term.

PUMP.FUN: The Core Engine of the Super Cycle

This year, the money-sending craze initiated by BOME and SLERF has somewhat changed the issuance method through its presale model, attracting market attention. However, frequent rug pulls in the money-sending schemes have not effectively resolved the aforementioned issues. The emergence of PUMP.FUN has effectively addressed this situation, shortening the Memecoin issuance cycle, facilitating continuous capital flow, and gradually concentrating users, laying the foundation for the start of the Memecoin super cycle.

PUMP.FUN was created by founder Alon in January 2024, but initially had few followers, gradually entering the public eye in April. It has since issued nearly 5 million Memecoins, accounting for nearly 70% of Solana's daily token issuance, becoming 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 knowledge (after the August update, there is no longer a $2 creation fee), and the fair in-platform fundraising + reasonable price curve (Bonding Curve) successfully reduces the cost of asset issuance and increases the speed of asset issuance, effectively addressing the current market's rapid conversion of Memecoin hotspots and the difficulty of concentrating speculative funds.

Moreover, the success of PUMP.FUN lies not only in its innovative mechanism. Its user positioning and product design are also quite excellent. From the user side, it addresses the real problem faced by most people in the Web3 market: "Users want a simpler, faster, and lower-cost way to obtain higher multiples of returns." From the product side, it is one of the few projects with a complete business loop, with clear and traceable profit sources. (Before launching on Raydium, the platform's trading fee was 1%, and the "listing fee" during the packaging process on Raydium was 6 SOL.)

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

PUMP.FUN Clones Emerge, Continuous Micro-Innovations

PUMP.FUN has initiated this round of Memecoin super cycle, and the subsequent continuous emergence of clones has made the super cycle even more prosperous.

Sun.pump: The Fifth Standard for Memecoin Launchpad on Public Chains

The influx of capital and market attention has led various public chains to launch PUMP.FUN clones, making Memecoin Launchpad a standard fifth item for public chains.

Major public chain ecosystems are beginning to support Memecoin at various levels. On BSC, platforms like Four.meme and Flap attract market attention by continuously launching activities and collaborations; on the Base chain, platforms like Ape.Store, Rug.fun, and Trugly.meme attract user participation through various gameplay; on BTC Layer 2, many clones have also emerged, such as LnPUMP.FUN, SatsPUMP.FUN, and CPUMP.FUN. The Sun.pump on the Tron chain has even driven the "renewed prosperity" of the entire Tron chain by "its own strength." In a short time, hot money surged into the Tron chain, causing its on-chain Gas to soar, and the long-dormant TRX price reached a nearly three-year high. However, TRX has since declined, currently falling back to 0.24 USDT.

As one watches it rise, one also sees it collapse. Memecoin, as a rapid user attraction entry point, can bring a wave of dividends to public chains, but how to sustain ecological construction is worth pondering.

MakeNow.Meme: Optimization of Market-Making Models

MakeNow.Meme is no longer as hot as before, but it attracted widespread attention when it was first launched. It issued over 2,600 Memecoins in one day, with earnings exceeding 230+ SOL. Its issuance mechanism simplifies the asset issuance method compared to PUMP.FUN and provides a new direction for market-making models.

• Simplified asset issuance method ------ On Twitter, users publish tweets in a fixed format (tweets starting with the $ symbol and stock code, plus token description/video/image, etc.) and @ the official account, waiting for the official account to reply with the token contract address in the comments.
• Optimization of market-making models ------ The fair launch method seems to require everyone to sweep the chain to obtain the contract first. However, in reality, KOLs and project parties may privately reach agreements with the platform to preemptively buy low-priced chips.

According to Dune data, MakeNow.Meme gradually faded away just a week after its creation, leading to an outcome where it was ignored. This may confirm that the core narrative and main logic of Memecoin still revolve around 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 sparse compared to PUMP.FUN. Despite having natural traffic support, it seems to have not adequately handled the conversion of that traffic, failing to display MetaData before launch, and the launch history is not easily traceable, lacking transparency in functionality.

Its data performance after launch has also been relatively mediocre. This may indicate that while the traffic entry point exists, the key lies in how to convert users.

Optimization of User Experience

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

TG Bot: Optimization for Web3 Users

Behind this round of Memecoin super cycle is the development of tools and on-chain bots, which are rapidly updated through continuous iteration. From sniper tools, dollar-cost averaging, to security checks and correlation analysis, powerful tools and bots safeguard users' on-chain gold mining, driving Memecoin towards the masses from the demand side.

During this period, tools for Memecoin trading have expanded from mobile to web, catering to different segmented needs. There are professional trading websites compatible with multiple chains, such as gmgn.ai, Bullx, Photon, as well as convenient TG bots like Banana Gun, Tojan, and Bonkbot. These service tools specifically targeting Memecoin trading have leveraged the Memecoin gold rush, transitioning from a broad approach to a deeper one, with tools for wallet analysis, Twitter monitoring, and security detection becoming increasingly refined, and the product business model being validated. In this process, the number of TG Bot users has been continuously increasing, with daily active users exceeding 140,000 at peak, and daily trading volume reaching nearly $500 million. Although there is still a long way to go compared to on-chain DEXs, this niche area remains a blue ocean under the influence of the Memecoin super cycle.

MoonShot: Optimization 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 issues in Memecoin trading, such as high security risks, a multitude of decentralized platforms, and difficulty in obtaining Gas. The MoonShot, which involves the PUMP.FUN incubation team Alliance DAO, has somewhat addressed this issue.

It is a mobile application focused on Meme trading built on the Solana network, allowing users to directly purchase Memecoins through fiat deposit methods like Apple Pay, credit cards, and PayPal. This simplification of social login and fiat deposit processes brings more new users and new funds to the Solana ecosystem, bridging the link between on-chain Memecoin and off-chain funds. However, currently, as the wealth effect diminishes, the user activity of MoonShot is gradually declining. How to effectively convert Web2 users remains a persistent issue in the crypto space.

Rapidly Changing Narratives

As the most representative asset reflecting the attention economy phenomenon in the crypto market, Memecoin is experiencing a trend of diversified narrative programs under the market boom in 2024. Looking back at various previous meme projects, the narrative themes of Memecoin vary widely. However, each type represents specific market trends, community movements, and capital operation models. Based on past patterns and characteristics, we can roughly categorize them into four types: event-driven derivative Memecoins, community-driven IP Memecoins, celebrity effect-driven conceptual Memecoins, and cross-domain multidimensional emerging Memecoins. Various types intersect and influence each other, not entirely independent.

Event-Driven Derivative Memecoins

Memecoins triggered by sudden events often gather extremely high attention right from the start, with traffic and funds quickly pushing up the asset prices of Memecoins during the attention phase. Their rise often happens suddenly and is difficult to replicate. Their core characteristic is rapid explosion with high short-term multiples but insufficient sustainability, requiring new driving forces after attention wanes. Examples include BOME, SLERF, FIGHT, BAN, etc., which can be categorized as event-driven speculative Memecoins.

BOME (BOOK OF MEME) is a presale project initiated by Pepe meme artist Darkfarm, raising over 10,000 SOL in its presale. Due to widespread attention, its token trading volume exceeded $200 million upon launch, and its market cap peaked over $1 billion three days after listing on Binance. The subsequent SLERF, which adopted the same presale mechanism, saw its Meme token price spiral upward due to an unexpected destruction of LP and airdrop reserved tokens by DEV, leading to sudden events and subsequent dissemination.

However, if the Meme triggered by sudden events does not maintain sustained attention from the market, its price will converge and decrease. The Fight token, derived from a slogan after Trump's assassination, once had a market cap exceeding $80 million but has since dropped over 90% due to a lack of attention; the BAN token, which was issued by Sotheby's vice president Michael Bouhanna on PUMP.FUN, saw a peak drop of 85% after listing on Binance.

Community-Driven IP Memecoins

IP-type Memecoins often have strong consensus, forming communities over a long fermentation period. These community-driven IP Memes have shown strong resilience during the fluctuations of 2024. Their rise to new highs may experience a lengthy washout period, with their core characteristics being high community consensus and a strong CULT temperament, or they may exhibit strong resilience amidst repeated ups and downs. Examples include the Cult series POPCAT, SPX, APU, and other established IPs like MEW, NEIRO, and MANEKI.

MEW (cat in a dogs world) is a brave cat fighting against dogs, and its token, launched in March this year, reached a market cap of $1 billion as a pioneer in the "cat track." Another IP, Maneki (Japanese lucky cat), also referenced its mechanism of 90% liquidity pool and 10% community allocation, causing a brief FOMO. Another example of a community IP-type Memecoin is Neiro, named after the rescue dog recently adopted by Kabosu, the owner of the late Shiba Inu meme dog. The token reached a market cap of nearly $50 million within two days of launch, with its price fluctuating around issues related to public chains and case sensitivity, with asset speculation continuing from on-chain to exchanges. The lowercase Neiro on Ethereum ultimately triumphed through community support, reaching a market cap of $1.2 billion. Additionally, Murad, as a new star in the super cycle, has set its token selection criteria to include tokens that have existed for at least six months and have experienced at least two 70% crashes. Thus, while SPX's short-term rise benefited from its influence, the importance of community IP was the reason for its rebirth amidst repeated downturns.

Celebrity Effect-Driven Conceptual Memecoins

The performance of Memecoins is often tied to key figures, as celebrities can promote related ideas through specific Memecoins, and tokens can further gain attention due to celebrity effects. Their core characteristic is that the price fluctuations of the tokens correlate with the size of the celebrity's influence and the strength of the binding relationship. Examples include DOGE, PNUT, TERMINUS led by Musk, and others like JENNER, MOTHER, etc.

The behavior and influence of celebrities issuing coins in this round of Memecoin super cycle have also changed due to the emergence of Pump.fun, with faster rhythms and higher multiples, attracting numerous Web 2 celebrities to participate. Caitlyn Jenner, a member of the Kardashian family, developed the JENNER token, which surged 160 times in one night; the well-known American female rapper Iggy Azalea's tweet on X included the Meme coin MOTHER, which exploded thirty times in two minutes, reaching a market cap of over $200 million at its peak. Musk's conceptual coins have become a focal point for Memecoin players, as whenever he posts topics of interest on social media, such as Mars concepts (TERMINUS), government efficiency departments (D.O.G.E), and political concepts (PNUT), related tokens on-chain experience short-term surges.

Cross-Domain Multidimensional Emerging Memecoins

The super cycle speculation of Memecoin this round is no longer limited to native Web3 content but spans multiple fields, covering a broader range of themes and topics. Within various sectors, the types of speculative targets are diverse and quickly form circles, attracting attention from multiple domains. From TikTok traffic to new AI technologies, to DeSci (decentralized science) and cutting-edge disciplines like physics, the speculative momentum of Memecoin has rapidly spread, with the involved fields continuously expanding, showing a trend of cross-border integration. Memecoin seems to have become a testing ground for emerging technologies and an experimental field for unverified tracks. The core characteristics of this type of Memecoin are novel narratives and a wide range of outreach. Examples include MOODENG, PESTO, CHILLGUY, GOAT, ACT, VIRTUAL, AIXBT, RIF, URO, etc.

Moo Deng is a baby hippo born in a Thai zoo, whose meme-worthy expressions have made it a darling on social media platforms like TikTok and Instagram, ultimately being selected as the annual meme by Twitter. The Moo Deng token on Solana once reached a market cap of $700 million, successfully listing on Coinbase as the smallest Memecoin by market cap, triggering demand for meme speculation in the Web 2 sector. Following this, the PESTO and CHILLGUY tokens also attracted widespread attention due to their strong Web 2 traffic, with market caps exceeding $500 million at one point.

Subsequently, speculation around AI agents also heated up. GOAT, which launched in June this year, is an AI Bot called the Truth Terminal (@truth_terminal), whose market cap surged over $1 billion in a short time. Following that, ACT, ELIZA, and other AI Memecoins quickly captured the minds of on-chain players, with AI Agent-related application tokens like ai16z, zerebro, virtual, and aixbt gradually developing into an ecosystem. Later, Binance announced its investment in BIO, bringing DeSci (decentralized science) into the public eye, with tokens RIF and URO on the Pump.Science platform, which is associated with experiments, starting a new round of speculation, with market caps exceeding $200 million at their peak.

Mainstream Acceptance and Adoption

Memecoin has transitioned from a marginalized asset to one that is widely recognized by institutions and investors, with its user base continuously growing and capital inflows increasing, gradually gaining recognition and adoption in the mainstream market.

From the perspective of capital inflows, market liquidity is clearly traceable. Numerous institutions have begun to allocate Memecoin; major exchanges have successively listed Memecoin; market makers are actively accumulating Memecoin. As of December 23, 2024, the total market cap of Memecoin has climbed to $230 billion, showing a continuous growth trend. According to a report released by Bybit in June, institutional investors increased their spot holdings by nearly $300 million in the first half of the year. Almost all crypto exchanges have listed various Memecoins, with Binance having listed over 20 Memecoins (including futures and spot) since 2024, 80% of which saw significant market cap growth after being listed on Binance. Five crypto market makers, including Wintermute, GSR Markets, Auros Global, B2C2 Group, and Cumberland DRW, hold Memecoins with a total value exceeding $100 million.

From the perspective of user growth, there has been a significant shift in attitudes. In the first half of the year, A16Z, which was still debating value coins, began to participate in speculation, unexpectedly giving rise to the first AI Memecoin, GOAT. Vitalik Buterin has also expressed his outlook on the future of Memecoin, participating in the promotion and charity work of MooDeng. Pantera partners have publicly acknowledged Memecoin, believing it to be the simplest way for the next generation to experience the latest DeFi applications and introduce them to Web3. Moreover, an increasing number of Web2 users have begun to recognize the value of Memecoin, with initiatives like DeSci's scientific assistance experiments, Dogecoin's ocean garbage cleaning program, and NOT's social tipping and red envelope functions creating fertile ground for Web2 users to understand and accept Memecoin. According to statistics, from the beginning of 2024 to the end of the year, the global number of Memecoin users has surpassed 50 million and continues to grow.

Conclusion

BTC, as the largest meme coin in the eyes of Web2, has surpassed $100,000, proving its market value. As early participants in Memecoin, are they merely gamblers chasing wealth or forward-looking investors? Where will Memecoin ultimately head, towards increasing marginalization and eventual disappearance, or gradually developing and stepping into the mainstream?

Cycles alternate and rotate, time tests the truth, and the answers are written in the future.