The Dawn of MEME SUMMER: Can It Change the Crypto Market Landscape?

IntermediateJul 30, 2024
MEME coins, which come from internet culture and spread through short texts and images, create a sense of community and connection. With growing dislike for VC-backed coins, MEME coins are getting a lot of attention because they're distributed fairly and easy to access.
The Dawn of MEME SUMMER: Can It Change the Crypto Market Landscape?

In 2021, DOGE’s rise highlighted MEME coins, and by 2024, their boom shows a shift in how people invest in the market. MEME coins are now a hot investment choice for institutions and funds, becoming mainstream investments. Born from the Internet MEME coins existed before blockchain and started on the internet. Successful MEME projects today, like Doge, SHIB, and PEPE, gained popularity through social media. They symbolize global communication and interaction online, which is why many call this a “grassroots culture.”

From the Internet

MEME coins existed before blockchain and started on the internet. The most successful MEME projects today, like Doge, SHIB, and PEPE, became popular through social media. They represent global communication and interaction online, forming the basis of what many call “grassroots culture.”

MEMEs are everywhere, and each one has a story behind it. These stories spread globally via the internet, creating a sense of community and identity, which is a big reason for MEME’s popularity. MEMEs start and grow through social platforms, chat apps, and forums. Sites like Twitter, Reddit, and Facebook are the main places where MEMEs thrive, providing people with ways to express opinions and release emotions, setting them apart from the mainstream, formal online content.

MEME expresses people’s thoughts in specific scenes on the Internet in a concise way (short text, innovative words, pictures, emoticons, etc.). Its wide dissemination makes people who don’t understand MEME willing to understand and integrate into it, and it spreads like a virus. Identity is the value behind MEME, and it is also the main driving force supporting the rise in MEME currency prices.

When MEME Meets Blockchain: Finding Order in Market Chaos

Blockchain can give value to many intangible things, and MEME coins are no different. Early on, even BTC could be seen as a type of MEME. After BTC became popular, the flood of worthless altcoins caused market chaos, leading to the creation of DOGE as a satire. DOGE first gained popularity after the 2013 market, marking the MEME 1.0 era.

The 2017 bull market brought another wave of altcoins and market chaos (the ICO craze), setting the stage for DOGE’s second rise. This was a key factor in DOGE’s renewed popularity in 2021. Even without Elon Musk’s support, other public figures might have promoted MEME coins. Dog-themed MEME projects like SHIB also started gaining traction, leading to the MEME 2.0 era.

Similarly, during the 2024 bull run, market chaos shifted to the high valuations of VC-backed coins and manipulative tactics by many so-called “value” projects. This led to another rise of MEME coins. The mainstream market’s downturn reflects grassroots investors’ resistance to VC-backed coins and the exploitation of small investors. MEME coins, with their fair distribution and strong price performance, addressed these issues, gaining significant attention and ushering in the MEME 3.0 era.

The history of MEME coins shows that their popularity is largely due to the mainstream market’s failures and misdeeds. Grassroots retail investors, lacking the power and funds to combat these actions, turn to alternatives. What they have in abundance is enthusiasm and the ability to spread information, which gives MEME coins their value and makes them an attractive choice.

The Clash Between Price and Value: Key Features of Promising MEMEs \
\
Not all MEME coins are worth investing in. Just like mainstream cryptocurrencies, the MEME space has a mix of good and bad projects, with many designed to exploit small investors. This might become even more noticeable in the future. For regular investors, identifying promising MEME projects is essential. We can look at successful MEME projects from the past to understand their key traits.

DOGE DOGE was mined early on, with many coins available at low prices. It was great for online tipping and supported on platforms like Facebook, Twitter, and Twitch. It also sponsored sports events, fitting well with tipping culture abroad. The community slogan “To The Moon” was popularized by Elon Musk, and various MEME images spread on Twitter.

SHIB SHIB, themed around Shiba Inu dogs, is an extension of DOGE. It launched with a Fair Launch distribution and has strong entertainment value. SHIB continuously develops, aiming to be a “value coin” by launching a DEX, BONE tokens, and a mainnet in 2023, supporting its token economy and exploring the transition from MEME to value coins.

PEPE PEPE is based on the popular internet character Pepe the Frog. Pepe has comics, memes, and animations, with a strong user base on platforms like Telegram, Twitter, Facebook, Reddit, and YouTube. PEPE tokens are used in liquidity pools and have deflationary and redistribution mechanisms, attracting investors and support from market makers and investment firms.

WIF WIF is a dog-themed MEME token on Solana and the third most successful dog-related token so far. It features low costs and fast transfer speeds, with the creator’s balance set to 0 to ensure decentralization. Endorsed by celebrities like Hsaka, WIF stands out among dog coins. Its speculative nature and price surge have increased investor attention.

PUFF PUFF (PUFF The Dragon) is a MEME project on the Mantle chain, mainly targeting the mETH (re-staked Ethereum) community, themed around a black and gold dragon. PUFF redefines MEME storytelling. Users obtain PUFF by using mETH to mint a mysterious potion, then establish an AMM pool for free exchange. The well-known trader DCF GOD spent $1.5 million on PUFF, making it a major focus of attention.

Common Traits of Successful MEMEs

From DOGE to PUFF, it’s clear that easy distribution and low entry barriers are crucial for MEME success. Methods like mining and fair distribution allow community users to participate at low costs. While absolute fairness is impossible, these approaches provide many opportunities for users to join, building a large user base essential for spreading MEMEs.

Moreover, MEME projects have evolved from their early internet culture uses (like tipping) to more valuable applications. Examples include SHIB’s Swap, PEPE’s deflationary features, WIF’s low cost and decentralization, and PUFF’s value tied to mETH. This indicates that just speculating on prices isn’t enough to make a MEME token popular; practical applications and investor expectations are also necessary.

Another key factor is endorsements and financial backing from celebrities or influential figures. Elon Musk frequently mentions DOGE, WIF is backed by community celebrities, PEPE was listed on major exchanges like Binance with support from investment firms, and PUFF saw significant investment from a famous trader. Celebrity endorsements significantly contribute to the success of MEME projects.

Additionally, the price increase is a crucial factor. Rising prices allow many retail investors to profit, which enhances the influence of MEME tokens and attracts more interest from institutions and exchanges.

The development path of MEME coins is the exact opposite of high-finance VC-backed coins. One key to MEME’s success is that institutions buy in after retail investors. In contrast, VC coins prioritize profits for the project team and investment institutions, eventually leaving retail investors holding the bag. Once retail investors buy in, no new funds enter, resulting in losses for them. This has led to the current decline in popularity of VC coins and the rising popularity of MEME coins.

Development Goals of MEME Coins

No high-value MEME coin gains sustained attention purely through hype. For long-term success, investors need to consider both the economic model and practical applications.

For instance, DOGE’s use for tipping and its proof-of-work (POW) mechanism, or the SHIB team’s development of a decentralized exchange (Swap), highlight the need for real-world utility. Recently, this trend has grown stronger. PUFF, for example, has expanded its use cases and economic framework, showing a shift towards becoming a “value coin” while maintaining its MEME identity.

PUFF’s mETH incentives drew $300 million in funding, making it the leading DeFi project in the Mantle ecosystem and boosting Mantle’s growth. Additionally, PUFF’s plans include GameFi elements, with staking and gaming features that attract significant investors and institutions. This demonstrates that MEME projects are now focusing on long-term sustainability rather than short-term gains and irrational surges.

Extremes in investment strategies can backfire. PUFF’s development shows that while MEMEs can quickly gather attention and capital, long-term success requires solid planning and practical uses. This strategy is also more appealing to technical analysts. Similar projects, like AIDoge, have brought substantial traffic and trading volume to Arbitrum, illustrating the potential of well-planned MEME projects.

Summary

From the development paths of the five MEME tokens mentioned above, it is clear that MEME coins have gained recognition from many investors. Leveraging absurd humor and internet culture as a foundation, MEMEs easily resonate with users. This provides a low-cost, rapid entry into the user market and helps build project communities, which could become a primary strategy for grassroots projects’ cold starts in the future.

However, projects that rely solely on the MEME concept often struggle to sustain long-term development. Therefore, mid-term technological advancement is crucial for attracting the attention of investment institutions and exchanges, the so-called “mainstream” entities. During this process, the tokens may gradually shift from the hands of retail investors to institutions, driving the project’s growth and expansion. Retail investors, after profiting, tend to develop a stronger affinity for MEME culture, creating a positive flywheel effect that helps MEME projects gain broader appeal.

Disclaimer:

  1. This article is reposted from [PANews], and the copyright belongs to the original author [B链物语]. If there are any objections to the repost, please contact the Gate Learn team, and the team will handle it promptly according to the relevant procedures.
  2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
  3. Other language versions of this article have been translated by the Gate Learn team. Without mentioning Gate.io, the translated articles may not be copied, disseminated, or plagiarized.

The Dawn of MEME SUMMER: Can It Change the Crypto Market Landscape?

IntermediateJul 30, 2024
MEME coins, which come from internet culture and spread through short texts and images, create a sense of community and connection. With growing dislike for VC-backed coins, MEME coins are getting a lot of attention because they're distributed fairly and easy to access.
The Dawn of MEME SUMMER: Can It Change the Crypto Market Landscape?

In 2021, DOGE’s rise highlighted MEME coins, and by 2024, their boom shows a shift in how people invest in the market. MEME coins are now a hot investment choice for institutions and funds, becoming mainstream investments. Born from the Internet MEME coins existed before blockchain and started on the internet. Successful MEME projects today, like Doge, SHIB, and PEPE, gained popularity through social media. They symbolize global communication and interaction online, which is why many call this a “grassroots culture.”

From the Internet

MEME coins existed before blockchain and started on the internet. The most successful MEME projects today, like Doge, SHIB, and PEPE, became popular through social media. They represent global communication and interaction online, forming the basis of what many call “grassroots culture.”

MEMEs are everywhere, and each one has a story behind it. These stories spread globally via the internet, creating a sense of community and identity, which is a big reason for MEME’s popularity. MEMEs start and grow through social platforms, chat apps, and forums. Sites like Twitter, Reddit, and Facebook are the main places where MEMEs thrive, providing people with ways to express opinions and release emotions, setting them apart from the mainstream, formal online content.

MEME expresses people’s thoughts in specific scenes on the Internet in a concise way (short text, innovative words, pictures, emoticons, etc.). Its wide dissemination makes people who don’t understand MEME willing to understand and integrate into it, and it spreads like a virus. Identity is the value behind MEME, and it is also the main driving force supporting the rise in MEME currency prices.

When MEME Meets Blockchain: Finding Order in Market Chaos

Blockchain can give value to many intangible things, and MEME coins are no different. Early on, even BTC could be seen as a type of MEME. After BTC became popular, the flood of worthless altcoins caused market chaos, leading to the creation of DOGE as a satire. DOGE first gained popularity after the 2013 market, marking the MEME 1.0 era.

The 2017 bull market brought another wave of altcoins and market chaos (the ICO craze), setting the stage for DOGE’s second rise. This was a key factor in DOGE’s renewed popularity in 2021. Even without Elon Musk’s support, other public figures might have promoted MEME coins. Dog-themed MEME projects like SHIB also started gaining traction, leading to the MEME 2.0 era.

Similarly, during the 2024 bull run, market chaos shifted to the high valuations of VC-backed coins and manipulative tactics by many so-called “value” projects. This led to another rise of MEME coins. The mainstream market’s downturn reflects grassroots investors’ resistance to VC-backed coins and the exploitation of small investors. MEME coins, with their fair distribution and strong price performance, addressed these issues, gaining significant attention and ushering in the MEME 3.0 era.

The history of MEME coins shows that their popularity is largely due to the mainstream market’s failures and misdeeds. Grassroots retail investors, lacking the power and funds to combat these actions, turn to alternatives. What they have in abundance is enthusiasm and the ability to spread information, which gives MEME coins their value and makes them an attractive choice.

The Clash Between Price and Value: Key Features of Promising MEMEs \
\
Not all MEME coins are worth investing in. Just like mainstream cryptocurrencies, the MEME space has a mix of good and bad projects, with many designed to exploit small investors. This might become even more noticeable in the future. For regular investors, identifying promising MEME projects is essential. We can look at successful MEME projects from the past to understand their key traits.

DOGE DOGE was mined early on, with many coins available at low prices. It was great for online tipping and supported on platforms like Facebook, Twitter, and Twitch. It also sponsored sports events, fitting well with tipping culture abroad. The community slogan “To The Moon” was popularized by Elon Musk, and various MEME images spread on Twitter.

SHIB SHIB, themed around Shiba Inu dogs, is an extension of DOGE. It launched with a Fair Launch distribution and has strong entertainment value. SHIB continuously develops, aiming to be a “value coin” by launching a DEX, BONE tokens, and a mainnet in 2023, supporting its token economy and exploring the transition from MEME to value coins.

PEPE PEPE is based on the popular internet character Pepe the Frog. Pepe has comics, memes, and animations, with a strong user base on platforms like Telegram, Twitter, Facebook, Reddit, and YouTube. PEPE tokens are used in liquidity pools and have deflationary and redistribution mechanisms, attracting investors and support from market makers and investment firms.

WIF WIF is a dog-themed MEME token on Solana and the third most successful dog-related token so far. It features low costs and fast transfer speeds, with the creator’s balance set to 0 to ensure decentralization. Endorsed by celebrities like Hsaka, WIF stands out among dog coins. Its speculative nature and price surge have increased investor attention.

PUFF PUFF (PUFF The Dragon) is a MEME project on the Mantle chain, mainly targeting the mETH (re-staked Ethereum) community, themed around a black and gold dragon. PUFF redefines MEME storytelling. Users obtain PUFF by using mETH to mint a mysterious potion, then establish an AMM pool for free exchange. The well-known trader DCF GOD spent $1.5 million on PUFF, making it a major focus of attention.

Common Traits of Successful MEMEs

From DOGE to PUFF, it’s clear that easy distribution and low entry barriers are crucial for MEME success. Methods like mining and fair distribution allow community users to participate at low costs. While absolute fairness is impossible, these approaches provide many opportunities for users to join, building a large user base essential for spreading MEMEs.

Moreover, MEME projects have evolved from their early internet culture uses (like tipping) to more valuable applications. Examples include SHIB’s Swap, PEPE’s deflationary features, WIF’s low cost and decentralization, and PUFF’s value tied to mETH. This indicates that just speculating on prices isn’t enough to make a MEME token popular; practical applications and investor expectations are also necessary.

Another key factor is endorsements and financial backing from celebrities or influential figures. Elon Musk frequently mentions DOGE, WIF is backed by community celebrities, PEPE was listed on major exchanges like Binance with support from investment firms, and PUFF saw significant investment from a famous trader. Celebrity endorsements significantly contribute to the success of MEME projects.

Additionally, the price increase is a crucial factor. Rising prices allow many retail investors to profit, which enhances the influence of MEME tokens and attracts more interest from institutions and exchanges.

The development path of MEME coins is the exact opposite of high-finance VC-backed coins. One key to MEME’s success is that institutions buy in after retail investors. In contrast, VC coins prioritize profits for the project team and investment institutions, eventually leaving retail investors holding the bag. Once retail investors buy in, no new funds enter, resulting in losses for them. This has led to the current decline in popularity of VC coins and the rising popularity of MEME coins.

Development Goals of MEME Coins

No high-value MEME coin gains sustained attention purely through hype. For long-term success, investors need to consider both the economic model and practical applications.

For instance, DOGE’s use for tipping and its proof-of-work (POW) mechanism, or the SHIB team’s development of a decentralized exchange (Swap), highlight the need for real-world utility. Recently, this trend has grown stronger. PUFF, for example, has expanded its use cases and economic framework, showing a shift towards becoming a “value coin” while maintaining its MEME identity.

PUFF’s mETH incentives drew $300 million in funding, making it the leading DeFi project in the Mantle ecosystem and boosting Mantle’s growth. Additionally, PUFF’s plans include GameFi elements, with staking and gaming features that attract significant investors and institutions. This demonstrates that MEME projects are now focusing on long-term sustainability rather than short-term gains and irrational surges.

Extremes in investment strategies can backfire. PUFF’s development shows that while MEMEs can quickly gather attention and capital, long-term success requires solid planning and practical uses. This strategy is also more appealing to technical analysts. Similar projects, like AIDoge, have brought substantial traffic and trading volume to Arbitrum, illustrating the potential of well-planned MEME projects.

Summary

From the development paths of the five MEME tokens mentioned above, it is clear that MEME coins have gained recognition from many investors. Leveraging absurd humor and internet culture as a foundation, MEMEs easily resonate with users. This provides a low-cost, rapid entry into the user market and helps build project communities, which could become a primary strategy for grassroots projects’ cold starts in the future.

However, projects that rely solely on the MEME concept often struggle to sustain long-term development. Therefore, mid-term technological advancement is crucial for attracting the attention of investment institutions and exchanges, the so-called “mainstream” entities. During this process, the tokens may gradually shift from the hands of retail investors to institutions, driving the project’s growth and expansion. Retail investors, after profiting, tend to develop a stronger affinity for MEME culture, creating a positive flywheel effect that helps MEME projects gain broader appeal.

Disclaimer:

  1. This article is reposted from [PANews], and the copyright belongs to the original author [B链物语]. If there are any objections to the repost, please contact the Gate Learn team, and the team will handle it promptly according to the relevant procedures.
  2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
  3. Other language versions of this article have been translated by the Gate Learn team. Without mentioning Gate.io, the translated articles may not be copied, disseminated, or plagiarized.
Start Now
Sign up and get a
$100
Voucher!