MEME Token rises, leading new trends in the crypto market

In 2024, the explosion of MEME Tokens marked a significant shift in the investment logic of the market. These types of Tokens have become popular investment varieties favored by investment institutions and market funds, entering the mainstream investment arena.

The Internet Origin of MEME

The concept of MEME predates the emergence of blockchain technology, with its roots traceable to the internet era. Currently, the outstanding MEME projects mostly stem from the social craze of the internet. Represented by Doge, SHIB, and PEPE, MEMEs reflect the achievements of global internet users communicating and interacting through the internet, serving as a typical embodiment of internet culture, and are hailed as representatives of "grassroots culture."

MEME is everywhere, and each MEME contains a unique story behind it. These stories are spread globally through the internet, resonating with people, which is the key to the widespread popularity of MEME. MEME mainly germinates and spreads on social platforms, chat applications, and forums, gradually becoming known to more people. These platforms are not only the main battleground for the popularity of MEME but also important channels for people to express their opinions and vent emotions, forming a stark contrast with the mainstream and rigid online information.

MEME conveys people's thoughts in specific scenarios through concise expressions (such as short texts, innovative vocabulary, images, emoticons, etc.). Its wide dissemination makes even those who do not understand MEME willing to explore and participate, spreading like a virus. A sense of belonging is the core value of MEME, and it is also the main driving force behind the increase in the price of MEME Token.

The Integration of MEME and Blockchain: Redemption in the Chaos of the Market

Blockchain technology has endowed many intangible assets with value, and MEME is no exception. Strictly speaking, early Bitcoin can also be viewed as a kind of MEME. After the popularity of Bitcoin, a large number of worthless altcoins emerged, causing chaos in the market, and the birth of Dogecoin was precisely to satirize this phenomenon. Dogecoin first gained popularity after 2013, which can be seen as the beginning of the MEME 1.0 era.

During the bull market in 2017, the proliferation of altcoins and the chaos in the market (ICO disorder) laid the foundation for the second rise of Dogecoin, which was also an important factor in Dogecoin gaining market recognition again in 2021. Even without the push from specific public figures, there may be other celebrities endorsing MEME. Dog-themed MEME projects like SHIB also began to emerge, marking the entry of MEME into the 2.0 era.

Similarly, in this round of increase in 2024, the chaos in the market has transformed into an overvaluation of tokens supported by venture capital and excessive marketing of numerous "value" projects towards users, providing another development opportunity for MEME. The sluggishness of the mainstream market reflects, to some extent, the resistance of ordinary investors against venture capital-supported tokens and the behavior of harvesting investors, while the fair distribution and price performance of MEME precisely address the pain points of the public, naturally attracting a lot of attention, thus entering the 3.0 era.

From the development history of MEME, it can be seen that an important reason for the popularity of MEME is the inaction and chaotic behavior of the mainstream market. As grassroots retail investors, we do not have enough strength and funds to resist such behavior, so we can only turn in the opposite direction. What retail investors lack the least is hype and dissemination ability, which is also where its value lies, and it is also our basic basis for choosing MEME.

Analysis of Potential MEME Characteristics

Not all MEME have investment value. Similar to the chaos in mainstream Tokens, the MEME field also has a mix of good and bad projects, and the phenomenon of exploiting investors can happen anywhere, and it may become more pronounced in the future. For ordinary investors, it is crucial to identify potential MEME projects. We can summarize some characteristics by analyzing past successful MEME projects.

The common points of successful MEME projects

From Dogecoin to PUFF, we can see that the distribution methods and low thresholds of MEME are one of the main factors for success. From power mining to fair distribution, these methods allow community users to participate at a low cost. Although absolute fairness is impossible, this approach has reserved many opportunities for early participants and accumulated a large user base, which is also the core strength of MEME dissemination.

In addition, the MEME project has gradually shifted from early internet culture applications (such as tipping) to more value-oriented aspects. For example, SHIB launched an exchange, PEPE introduced a deflationary mechanism, WIF emphasizes low cost and decentralization, and PUFF showcases value with mETH at its core. This indicates that mere price speculation is not sufficient to make a popular MEME Token; there also needs to be certain application scenarios, and investors still have certain expectations for the projects.

Another important factor is the celebrity effect and funding support. Whether it's Musk frequently mentioning Dogecoin, WIF gaining endorsements from community celebrities, PEPE being listed on mainstream exchanges with backing from investment institutions, or PUFF receiving large investments from well-known traders, the star effect plays a key role in the success of MEME projects.

Of course, price performance is also an important factor in the success of the MEME Token. The price increase has allowed many retail investors to profit, and the expansion of the user base further enhances the influence of the MEME Token, thereby attracting the attention of institutions and exchanges.

The development path of MEME Tokens is exactly the opposite of the tokens supported by high financing venture capital. Allowing institutions to take over from retail investors is an important sign of MEME's success. In contrast, venture capital-supported tokens focus on the profits of the project team and investment institutions, ultimately ending with retail investors taking over. After retail investors complete the takeover, due to a lack of new funds coming in, they often become the last buyers. This is also the reason why venture capital-supported tokens are facing a cold reception while the MEME craze is rising.

Development Goals of MEME Token

No high market cap MEME Token can gain long-term attention solely through speculation. For investors, the economic model and application scenarios are factors that must be considered for long-term development.

For example, the tipping feature and proof-of-work mechanism of Dogecoin, and the exchanges developed by the SHIB team, etc. Since this year, this trend has been further strengthened. Projects like PUFF have further increased the application scenarios and the economic cycle of the Token, with the project trending towards traditional "value coins", where the MEME attribute has become a major distinguishing factor.

PUFF attracted $300 million in funding through mETH incentives, successfully becoming a leading DeFi project in the Mantle ecosystem, which greatly promoted the development of the Mantle ecosystem. In addition, PUFF has also integrated GameFi elements into its project planning, and staking and gameplay have become important factors in attracting major investors and institutions. This indicates that the MEME project team has begun to focus on the long-term development of the project rather than short-term price manipulation and disorderly growth.

If investment goes to extremes, it will inevitably backfire. The development path of PUFF tells us that MEME, as an early promotional tool, can quickly gather popularity and funds, but for long-term development, empowerment and planning are indispensable factors. For some technically analytical investors, this development model is also easier to accept. Similar projects like AIDoge's explosion have brought huge traffic and trading data to Arbitrum.

Conclusion

From the development paths of the aforementioned MEME tokens, MEME has gained recognition from numerous investors. They leverage humor and internet culture as a user base, which makes it easier to resonate with users. This is a low-cost and rapid way to enter the user market and establish project communities, and in the future, it is expected to become a primary cold-start strategy for grassroots projects.

However, projects that purely rely on the MEME concept often find it difficult to sustain development. Therefore, mid-term technological follow-up is crucial for attracting the attention of "regular troops" such as investment institutions and exchanges. In this process, chips may gradually shift from retail investors to institutions, thereby promoting the transformation and growth of the project. After making a profit, retail investors usually develop a greater sense of identity with MEME culture, thus creating a positive flywheel effect that helps MEME gain more traction.