In 2024, the meme coin market experienced cyclical spikes, especially at the beginning of the year and during the second quarter. “The spread of these assets is highly contagious, relying on social media and community support, often showing exponential growth,” states a recent report from HTX Ventures, the global investment division of HTX. According to the study, the meme coin market has reached unprecedented popularity this year.
In summary, the analysis likens this trend to a contagion, occurring rapidly, primarily through social networks and community engagement.
The King of Cat #Memecoins!🐱
Who claims the crown?👑 pic.twitter.com/xdDEko3uwW
— HTX (@HTX_Global) October 30, 2024
In this expansionary landscape, the report highlights meme coin platforms among recently emerging trends. According to the study, projects like Pump.fun and SunPump have accelerated the creation and trading of meme coins, attracting a wide range of users.
HTX Ventures further notes that meme coins are being seen as pioneers in the development of various blockchain ecosystems, capturing market attention and driving sector growth. The study indicates that meme coins will impact the market in four key ways:
- Major meme coin foundations, support programs, or community initiatives will continue to establish themselves, contributing to the development of meme coins within their respective ecosystems, often through innovative funds.
- Venture capital investors will become more involved. According to the report, in the second half of this year, several venture capital firms announced plans to invest in meme coin infrastructure. This would mark a significant shift, with the sector embracing meme coins rather than resisting them.
- Strategies regarding meme coins will become more professional and transparent.
- As liquidity is generated, more support mechanisms will arise, and new secondary projects based on meme coins will emerge.
Promising Future
Regarding future projections for meme coins, the analysis anticipates that the sector will continue growing through the end of 2024. This expansion is expected to be driven by increasing liquidity, direct participation in multiple ecosystems, and venture capital investment.
The report also suggests that there is an expectation for more professional and transparent approaches to meme coin investments and trading.
Market Diversification
To illustrate the different types of meme coin projects developed this year, the study highlights the following profiles:
- Institutional Investor-Controlled Coins
Examples in this category include tokens like $BOME, $SLERF, $MEW, and $MANEKI. These coins are characterized by robust liquidity pools and rapid price surges. According to the report, they often achieve high market capitalization, which can be challenging for “latecomer” investors. - News and Rumor-Driven Coins
This category includes meme coins linked to news and headlines, often influenced by key figures in the sector like Elon Musk or Roaring Kitty. As a result, these meme coins can experience significant price fluctuations based on news or even rumors. Examples include $GME, $BODEN, $TREMP, $DJT, and $NCAT. - Community-Based Coins
Community-centered coins, often inspired by cat and dog characters, tend to offer high returns but also come with high failure risk. According to HTX’s analysis, these tokens can yield substantial returns due to prolonged low-price periods, allowing investors to accumulate large amounts. However, due to a lack of scarcity, they are also vulnerable to failure. Examples cited in the study include $POPCAT, $MICHI, $SC, and $NEIRO. - Celebrity Coins
The report notes that celebrity-linked meme coins have recently gained popularity on Solana. Generally, celebrities are not interested in long-term involvement with these tokens, viewing them as fleeting opportunities, with some recent scams reported. However, such coins could have promising potential if celebrities with a large non-crypto fanbase engage with the project. The most successful celebrity coin so far, according to the report, is $MOTHER, launched by rapper Iggy Azalea, who actively promotes the token with her millions of fans. Other examples include $RNT and $PAJAMES.
Other Examples: The study also mentions other popular meme coins that don’t necessarily fit neatly into any one category, such as $WEN, $BONK, and $WIF.
Conclusion
In conclusion, the report remains optimistic about meme coins for the end of 2024 and the first half of 2025. According to HTX, meme coins are set for growth due to factors like their low market cap, quick recognition, and low barriers to entry.
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