It is expected that interest rates will trend downward in the second half of 2024 and the first half of 2025, as we move towards a more accommodative macro environment.

Written by: HTX Ventures

Abstract

This article explores the current state and development characteristics of the Meme sector in 2024 through observation and analysis, covering trends in Meme coins, the rise of platforms, dissemination methods, and market strategies. The main points are as follows:

1. Meme Coin Craze and Dissemination Model: The Meme coin trend in 2024 shows periodic peaks, especially in the early and second quarters. The dissemination of Memes resembles the spread of infectious diseases, leveraging social media and community sharing, often accompanied by exponential growth. New characteristics have emerged in the development model of 2024.
2. 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 ecosystem support.
3. Market Liquidity and Strategy: Memes have been viewed by major public chains and project parties as a "foothold" for ecological development. This is the biggest 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 sector mainly involve grasping leading coins, trading volume, and market sentiment.
4. Future Outlook for Memes: With liquidity easing, 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 gameplay anticipated.

New Characteristics of the Meme Sector

Continued Popularity with Periodicity

Unlike previous phases of Meme trends, the current cycle has seen 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 "infect" a large number of users quickly, 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.

The dissemination of memes typically exhibits exponential growth; initially, only a few people are exposed to the meme, but it can spread to a large audience in a short time. Additionally, meme dissemination is 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 illustrated by 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 sector in this round, such as the emerging Memecoin launch platforms Pump.fun and SunPump. During this cycle, Memecoin platforms 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, marketing, and community engagement.

As the crypto industry continues to evolve, the Memecoin space 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

From the perspective of the user groups of two typical Meme platforms, the early 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 platforms like Twitter, performing notably on TRON.

Platform Revenue & Fees

SunPump launched later, but by the end of August, its revenue was approximately 567K, issuing about 7500 Memecoins daily. Pump.fun generates around 7000 daily, which is comparable to SunPump. Both platforms charge a 1% transaction fee.

Ecosystem 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 with 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, which is a dedicated 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 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:

• 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.
• 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.
• 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 Ecosystem 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 ecosystem, using Memes to activate and lead market enthusiasm, liquidity, and ecological pioneers. This is mainly reflected in the following two aspects:

• Memes have been viewed by major public chains and project parties as a "foothold" for ecological development. This is the biggest change in this round, in my opinion. From the initial sol founder wearing a silly dragon costume to the recent pump.fun, to NOT's "fascia gun sector," 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 will then be 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 to flow. There is a time difference between the perceptions of traditional outsiders and web3. A small number of people entering the cryptocurrency space first encounter the high-yield wealth creation myth of the Meme sector. High volatility means they can potentially achieve high returns in a short time. Retail investors who can enter the space 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 budget-constrained retail investors, this low-threshold investment is more appealing.

Meme as a Case Study for Ecological Liquidity Strategies

As mentioned above, in this round, Memes are 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 around 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 to 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 tipping token for the Farcaster social platform, but it still retained its Meme attributes, equating to 80% Meme attributes and 20% utility attributes. Not to mention the support from the Farcaster and Base ecosystems for Degen later on. As for $High, it is a 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 liquidity strategy for Memes on the Avalanche chain was mainly issued in the first half of 2024, supported by the Avalanche official foundation.
• Fantom: Launched the Meme season with Sonic Memecoin starting in June.
• zkSync: Meme token Zeekcoin $MEOW.

Distribution of Main Types of Meme Projects in 2024

Whale Coins

BOME/SLERF/MEW/MANEKI…

I categorize various large pool coins as whale coins, characterized by large pools and rapid price surges. They can accommodate large positions with high leverage, but often their high market capitalization makes it difficult for new investors 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 volatility due to various news events. For example, the DJT Trump coin attracted speculation due to rumors that Trump’s son Barron Trump was involved, but it also plummeted after revelations from notable figures like Zach XBT and GCR. Similarly, $GME saw frenzied speculation due to Roaring Kitty's return post, but soon after, it crashed due to Roaring Kitty's uninformative live video.

Community Coins

POPCAT/MICHI/SC/NEIRO

I believe that community tokens featuring cats and dogs are a type of meme with high odds but also a high failure rate. The high odds stem from the fact that these tokens often have a sufficiently long bottoming period to accumulate cheap chips, but due to insufficient scarcity, they can easily fail. The first key point is whether the token's avatar is eye-catching, but more importantly, the community atmosphere matters.

Additionally, I believe that community-type meme coins can gradually gather retail consensus in a favorable market environment, driving prices up slowly. However, in a poor market environment, due to the dispersion of holdings and other factors, they can drop quickly.

Celebrity Coins

MOTHER/RNT/PAJAMES

Celebrity coins have recently emerged as a trend on the SOL chain, but most celebrities are not committed to long-term management of their tokens; 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 crypto community and members, 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 capitalizations due to the involvement of reputable 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 Sector

Historical Bottom of the Altcoin Index

The explosion of Memes in the second half of 2024, in addition to the aforementioned support points, is also influenced by the current macro cycle, with the Altcoin Season index at 35. From a trend perspective, this is an important reason why I believe the Meme sector will return in the second half of the year.

Official Participation and Consensus in the Meme Sector

With the launch of platform Memes, ecological Memes, and various Meme launchers, the Meme sector 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 their ecosystems. Compared to the previous round, the consensus in the Meme sector has become increasingly strong.

As the vanguard, Memes are expected to contribute to ecological construction and project development in four main areas:

• First, continue to establish various Meme foundations, support plans, or community plans to foster the development of Memes in this ecosystem through innovation funds.
• Second, VC investors are joining in. Starting in the second half of 2024, many VCs have announced their participation in Meme infrastructure investments, transitioning from resistance to VCs to VCs embracing Memes.
• Third, the gameplay of Memes will become more professional and transparent.
• Fourth, 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 Meme-based creative tools will also experience a wave of growth.

Liquidity Tending to Ease, Favorable Meme Environment

It is expected that interest rates will trend downward in the second half of 2024 and the first half of 2025, as we move towards a more accommodative macro environment. Meme coins, due to their small market capitalization, high recognition, and low participation thresholds, are expected to achieve growth.

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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