Memecoin 2024Q2 Market Analysis

1. Current status and development trend of Meme coin market

In the second quarter of 2024, the Meme coin market continued the strong momentum of the first quarter, showing vigorous vitality and huge market potential. Despite the increase in market volatility, the overall performance is still remarkable. According to the latest data from CoinGecko, the average return rate of the Meme coin sector during Q2 reached 789.3%. Although this figure is lower than 1312.6% in Q1, it is still far ahead of other cryptocurrency categories, highlighting the unique position of Meme coins in the current crypto market.

In-depth analysis of market data reveals several trends worth noting: First, 7 of the top 10 Meme coins by market value have achieved triple-digit gains, which not only reflects the strong performance of the top projects, but also indirectly confirms investors continued confidence in the Meme coin market. Second, the average daily trading volume increased by about 35% from Q1 to a staggering $2.7 billion, indicating that the market is becoming more active. Finally, the number of newly issued Meme coins increased by about 20% from Q1, reflecting the enthusiasm of users for Meme coins and hinting at the risk of overheating in the market.

It is worth noting that despite the overall market performance, the differentiation between Meme coins is becoming increasingly obvious. Some projects with unique concepts, strong community support or technological innovation have performed well, while projects lacking substantial content have been gradually eliminated by the market. This indicates that the Meme coin market may be entering a more mature stage, and investors are becoming more rational and cautious in their choices.

2. Distribution and characteristics of Meme coins on major public chains

In the development of Meme coin, different public chain platforms have played a vital role. In Q2 2024, public chains such as Ethereum, Solana and TON have become the main battlefields for the development of Meme coin. Each platform has attracted different types of projects and investors due to its unique characteristics.

Ethereum is an old public chain. According to a report by BDC Consulting, Ethereum has the largest number of Meme coin projects among all blockchains, accounting for 45%. Ethereums advantage lies in its mature ecosystem and strong liquidity support. Many well-known exchanges and DeFi protocols give priority to Ethereum-based tokens, which provides a natural liquidity advantage for Meme coin projects. However, although Ethereums GAS fee has been reduced after the Cancun upgrade, it is still high compared to other public chains, which to a certain extent limits the participation of small investors and also provides opportunities for other public chain platforms.

Solana surpassed Ethereum (~450,000) with over 1.6 million daily active addresses in June 2024. Since October 2023, Solana and its meme coin ecosystem (valued at ~$7 billion) have seen significant growth in both price and popularity. Solana’s success is largely due to its superior performance: extremely fast transaction speeds and extremely low fees make it an ideal platform for small, frequent transactions. These features are particularly well suited to the trading characteristics of meme coins, and therefore attract a large number of emerging projects. For example, well-known meme coin projects such as BONK and DOGWIFHAT have achieved great success on Solana, further enhancing the platform’s appeal.

As a new public chain, some meme coin projects in TONs ecosystem, such as NOT and DOGS, have shown active transactions and community participation in early 2024. TONs unique advantage lies in its deep integration with Telegram. Considering that Telegram has hundreds of millions of active users worldwide, it provides a huge potential user base for meme coin projects on TON. The success of projects such as NOT fully demonstrates this advantage.

The above reflects the continuous maturity and segmentation of the Meme coin market. The characteristics of different public chains attract different types of projects, forming distinctive ecosystems. For example, projects on Ethereum tend to have a larger market capitalization and stronger stability, but the growth rate is relatively slow; projects on Solana grow the fastest, but also have the greatest volatility; and although the projects on TON are smaller in size, they show great growth potential because of their unique user base.

3. In-depth analysis of popular Meme coin projects

Among the many Meme coin projects, PEPE, WHY and DOGS are all outstanding representatives in Q2 2024. In addition, the emerging GAGA has also received widespread attention from the market. By gaining a deeper understanding of these projects, we can better understand the characteristics and success factors of the current Meme coin market.

3.1 PEPE: A classic example of community-driven

• Pepe

Market cap: $5.073 billion

Price: ¥ 0.0000874374 USD

Chain: Ethereum

Contract address: 0x6982508145454Ce325dDbE47a25d4ec3d2311933

Pepecoin has risen by more than 2,645% since its low point in April 2023, becoming the third largest meme coin on the market. Its success is mainly due to the following aspects:

First, PEPE adopts a completely fair distribution model. The design of no pre-sale and no team share has won wide trust from the community, which is particularly important in the context of frequent runaway incidents of Meme coins. Secondly, PEPE cleverly used the Internet cultural symbol of Pepe the frog and quickly attracted a lot of attention. As of the end of Q2 2024, PEPE has more than 600,000 Twitter followers and more than 30,000 Telegram community members. The huge community base provides PEPE with continuous support and dissemination power.

3.2 WHY: Innovative concepts lead new trends

• WHY

Market Cap: $133M

Price: 0.0000003167 USD

Chain: BNB Chain

Contract address: 0x9eC02756A559700d8D9e79ECe56809f7bcC5dC27

WHY is a new project of BNBchain launched in April 2024. Its uniqueness lies in the integration of philosophical thinking into the concept of Meme coin. The core idea of WHY is to stimulate thinking and discussion among community members through the simple but profound question of why. This innovative concept quickly attracted a lot of attention, and Twitter followers exceeded 25,000 in just two months.

As the first beneficiary of the BNB Chain Meme Heroes program, BNB Chain provided $200,000 of BNB liquidity support to the WHY project. From its launch to the end of Q2, WHY achieved a growth of about 450%, and its subsequent market performance was also remarkable.

4. Analysis of the MEME project with innovation potential

4.1 DOGS: A model of technological innovation and ecological integration

• DOGS

Market value: To be launched

Price: To be launched

Chain: TON

Contract address: To be announced

DOGS is a project launched on the TON network in March 2024. Its success fully demonstrates the importance of technological innovation and ecological integration. The biggest advantage of DOGS is its deep integration with the TON network and the Telegram platform. This not only provides DOGS with a huge potential user base, but also enables DOGS to fully utilize the technical advantages of the TON network.

DOGS also embodies the spirit of Web3. Unlike the traditional Web2 model, the innovative points system launched by DOGS allows users data to generate real value. By analyzing the registration time and activity of users on Telegram, DOGS gives corresponding points rewards to each participant, which not only attracts a large number of new users and produces a significant breaking circle effect, but also sends a clear signal to users: in the Web3 era, your data is your asset. This incentive mechanism embodies the core concept of Web3, that is, respecting the rights and interests of every participant and returning the ownership of data to the individuals who generate the data, thereby producing a breaking circle effect.

On the technical level, DOGS supports high-speed and low-cost transactions, thanks to the excellent performance of the TON network. In addition, the DOGS team has also developed a series of simple DApps based on TON, such as mini-games and emoticons, which greatly enhance user stickiness. In terms of community operation, DOGS makes full use of the social attributes of Telegram and continues to attract tens of millions of users to subscribe and participate by launching interesting dog-related content. Considering the rapid development of the TON network and the huge user base of Telegram, the future development potential of DOGS is worth looking forward to.

4.2 GAGA: An emerging force integrating social responsibility and technological innovation

• GAGA

Market value: To be launched

Price: To be launched

Chain: ETH

Contract address: 0x70786571a2C74F69F51fF6E0750C6755451DABf5

Among many Meme coin projects, GAGA has the potential to stand out in the future with its unique concept and innovative technical architecture, representing a development direction of Meme coins. GAGA is not only a cryptocurrency, but also a comprehensive project that integrates the concept of peace, innovative technology and social responsibility.

The core concept of GAGA is Voice of Peace, Messenger Against War, which aims to promote the concept of peace and support post-war reconstruction through the power of blockchain technology and digital currency. This concept was proposed against the backdrop of many conflicts and wars that still exist in the world today. The GAGA team hopes to provide assistance to war-affected areas through innovative ways.

This combination of social responsibility and digital currency gives Meme Coin a deeper meaning. It not only attracts traditional cryptocurrency investors, but also arouses the interest of groups concerned with social issues, thereby expanding the potential user and supporter base.

GAGAs technical architecture integrates multiple cutting-edge elements and demonstrates strong innovation:

1. DePIN: GAGA will use DePIN technology to establish a distributed communication network to provide resource coordination support for war zones and reconstruction areas. This approach not only improves the efficiency of resource allocation, but also ensures transparency of the process.

2. AI technology application: GAGA will develop AI educational software based on GPT-4o to provide personalized learning experience for children in war zones. In addition, AI technology is also used to optimize community management and decision-making processes, improving the operational efficiency of the entire ecosystem.

3. Public chain technology: GAGA will adopt the PoS (Proof of Stake) consensus mechanism, which not only reduces energy consumption but also improves the security of the network. At the same time, GAGA supports smart contracts, providing a technical basis for automated transactions and resource allocation. There are also DAO and RWA, etc. This diversified technical architecture enables GAGA to handle complex problems, so that it can play a greater role in practical applications.

5. Meme coin market trend forecast and investment strategy

5.1 Technological innovation drives the development of MEME coin

With the continuous advancement of blockchain technology, the Meme coin market is also undergoing profound changes. We expect the following technological trends to have a significant impact on the future development of Meme coins:

1. Deep integration of AI technology: Artificial intelligence is becoming an important part of Meme coin projects. We expect to see more projects like GAGA that apply AI technology to real-world scenarios in the future. AI can not only optimize project operations, but may also change the way Meme coins are created and disseminated. For example, AI-generated Meme content may become a new hot spot, and AI-driven trading strategies may also change the way the market operates.

2. Comprehensive application of Web3 technology: The development of decentralized identity system (DID) may bring better user management and community governance model to Meme Coin project. This can not only improve the security of the project, but also provide better privacy protection for users. In addition, the advancement of cross-chain technology may break down the barriers between different public chains and promote the interoperability of Meme Coin project, thus creating a larger ecosystem and market opportunities.

3. Unlimited imagination of the concept of the metaverse: The maturity of immersive technologies such as virtual reality and augmented reality may open up a new application space for Meme coins. In the future, Meme coins may no longer be limited to the online world, but can be deeply integrated with real life and become an important part of the metaverse.

6 Conclusion

The Meme coin market in Q2 2024 showed strong growth momentum and huge innovation potential. From traditional entertainment-oriented Meme coins to emerging projects that integrate social responsibility and advanced technology, Meme coins are undergoing a profound transformation.