Meme Coin Continues to Be Popular, Analysis of Current State of the Track

As of November 10th, the data statistics for BTC, ETH, and TON show:

The discussion count for BTC last week was 20.53K, up 21.23% from the previous week; the price was 81,357 dollars, up 19.2% from the previous week.

The discussion count for ETH last week was 5.75K, an increase of 50.03% compared to the previous week; the price was 3203 dollars, up 27.1% from the previous week.

The number of discussions about TON last week was 786, down 2.48% from the previous week; the price was 5.42 USD, up 0.83% from the previous week.

Recently, a trading platform launched the AI Meme projects ACT and PNUT, and the ACT token immediately surged about 10 times, setting a record for the increase in Meme tokens on exchanges, shocking the industry. This indicates that exchanges are turning their attention to the Meme track.

According to a report from a research institution, the total market capitalization share of Meme coins has increased from 4% since 2022 to 11% in 2024, nearly tripling in two years. Another report shows that institutional investors increased their holdings of spot Meme coins from $62.5 million to $204.8 million during the period from February to March this year, peaking at $293.7 million in April, with an increase of nearly 500%. The popularity of Meme coins continues to rise, and the explosive growth of tokens like DOGE, SHIB, PEPE, and GOAT has allowed many people to gain huge profits, while also raising questions. This article will analyze the reasons for the popularity of Meme coins and the current state of their market.

The Rise of Meme Coin

Meme coin is a cryptocurrency based on internet culture, typically created by developers or enthusiasts, inspired by popular online culture, and widely disseminated through social media and online forums. Unlike other crypto assets, meme coins are often created for entertainment purposes, lacking specific use cases and practical applications, but unexpectedly providing investment opportunities regarding consensus while stimulating people's sense of humor. Here are the reasons why meme coins continue to be popular:

1. Financialization of Internet Culture: Meme coins extend internet culture into the financial realm, endowing cultural symbols with trading value. Although these tokens lack practicality, they are attractive due to the cultural consensus they represent. They offer a more equitable and accessible opportunity for wealth creation, typically without pre-mining, team allocation, or venture capital distribution.

2. Global Macro-Economic Impact: During the COVID-19 crisis, central banks around the world implemented massive monetary easing, leading to a surge in the total money supply, making high-risk investments more attractive. In the face of inflation and currency devaluation, some funds flowed into high-risk assets, including Meme coins.

3. The "Rapid Dissemination" Strategy of Public Chain Ecosystem: Major blockchain ecosystems regard Meme coins as pioneers of development, using them to attract market attention and funds, thereby promoting subsequent ecosystem construction. The dissemination of Meme coins has a characteristic of high cyclical heat, achieving exponential growth through social media and communities.

The Attitude of Mainstream Institutions Towards Meme Coin Track

More and more institutional investors are beginning to pay attention to the Meme coin sector. Starting from the second half of 2024, some venture capital firms have announced plans to invest in Meme coin infrastructure, with their attitude shifting from opposition to gradual acceptance.

1. A well-known exchange: Invested in multiple Meme coin projects as early as 2023, continuing to maintain enthusiasm for participation in 2024. In January this year, invested in Memeland's native ecosystem Token MEME, and promoted the development of its Whyanelephant project.

2. A mainstream exchange: Supported DOGE as early as 2018 and invested in SHIBA in 2021. By the end of 2023, added Bonk to the list of tradable assets. After GOAT became popular, the exchange's CEO proposed setting up a crypto wallet for Truth Terminal, showing a continued emphasis on the Meme track.

3. A well-known venture capital institution: The institution initially held a critical attitude towards Meme coins, believing they undermined the long-term vision of cryptocurrency. However, their stance has recently changed, frequently participating in Meme-related events. The institution's co-founder tipped $50,000 in BTC to the bot account Truth Terminal on X, giving rise to the popular project GOAT and promoting the development trend of AI + Meme.

Strong Performing Meme Coin Projects

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, its market value grew from 700 million to 88 billion, and its current market value is about 36 billion. Support from a certain tech entrepreneur has brought tremendous traffic and influence to DOGE.

2. PEPE: Launched in April 2023, the number of holder addresses reached 100,000 within a month, with an increase of 120,000 times on the 22nd. Its success stems from the market's anticipation of the next popular Meme coin and the rapid support from mainstream exchanges.

3. Degen: A representative Meme project on the Base chain, showing outstanding performance in February-March 2024. Initially a purely community Meme project, it was later given utility and became the tip token of the Farcaster social platform. Thanks to ecosystem support, it paves the way for the future development of the Meme market.

4. GOAT: AI Meme coin represents an innovative combination of AI and meme concepts. Its rise is attributed to a $50,000 Bitcoin tip from a founding partner of a venture capital firm, as well as support from trading platforms. The market capitalization once reached a high of $600 million.

5. ACT: A Meme coin that combines AI technology with blockchain aims to create an "AI and Meme" themed ecosystem. Built on the Solana blockchain, it provides users with innovative digital interaction experiences through AI-driven mechanisms.

Summary

The continued popularity of Meme coins reflects the deep integration of internet culture and the financial sector, as well as the new trend of combining Meme with AI. As an indispensable part of the cryptocurrency ecosystem, Meme coins continuously attract global investors' attention with their unique community-driven approach and cultural symbolism. With the involvement of AI technology, the innovative potential and market influence of Meme coins are expected to further expand, injecting new vitality into the cryptocurrency market. In the future, Meme coins will continue to play an important role in the cryptocurrency field, driving industry development and transformation.