As of December 1, the data statistics of BTC, ETH, and TON on the TrendX platform are as follows:

The discussion volume of BTC last week was 14.31K, down 26.18% from the previous week; the price on the last Sunday was $96,743, down 1.7% from the previous Sunday.

The discussion volume of ETH last week was 5.11K, up 7.53% from the previous week; the price on the last Sunday was $3,699, up 6% from the previous Sunday.

The discussion volume of TON last week was 785, down 1.1% from the previous week; the price on the last Sunday was $6.63, up 20% from the previous Sunday.

From Ethereum's smart contracts to EOS's public chain, to Layer 2, cross-chain, metaverse and chain games, technology is constantly progressing, and new concepts are emerging endlessly. However, with the transformation of airdrops into point systems and high-threshold activities, retail investors may feel confused, which limits the growth of new users. In comparison, the narrative of Meme projects is simple and direct, relying on shared cultural genes to build consensus, without the need to delve into technical details. With the rise of Solana and the popularization of one-click token issuance platforms like Pump.fun, the participation threshold of Meme projects has been lowered, and the problems of code vulnerabilities have been solved, allowing the core features of culture, capital, and community to play a more direct role.

The Rise of Meme and the Pursuit of Capital

The above changes reveal two trends in the crypto community: on the one hand, new projects are becoming increasingly complex, and the participation threshold is getting higher; on the other hand, Meme projects have lowered the participation threshold through minimalism and professional division of labor. In a market with limited capital and users, the market balance seems to be tilting towards Meme projects.

As retail investors' interest in Meme coins grows, institutional investors are also beginning to turn their attention to this field. Wintermute, known for its super-high hit rate on Meme coins, has been continuously increasing its holdings of NEIRO on Ethereum since September 6, and as of October 15, Wintermute held PEPE worth about $10.52 million, making it the third-largest holding token, and also held NEIRO worth $3.48 million, becoming the market maker with the largest public holding. There are also three other market makers and a venture capital firm holding NEIRO_ETH tokens. Jump Trading also holds $1.2 million worth of SHIB.

From the perspective of capital, the motivation to invest in Meme coins is obvious. Compared to traditional value projects, venture capital (VC) requires a large initial investment and waits for a long period of project development and operation. Meme coin investment is more direct, allowing investors to choose targets that have been market-tested, hold tokens without locking up, and leverage capital advantages to manipulate the market, realize cash-out at any time, and achieve high returns, which is more in line with the pursuit of capital interests.

The Wealth Creation Effect Characteristics of Meme Coins

Do not understand the wealth creation effect of Meme coins as a derogatory concept of mindless nouveau riche. This is a neutral and most eye-catching feature of Meme coins, which attracts capital pursuit and attracts retail investors to swarm in, rapidly affecting every participant in the crypto industry.

Recently, LBank released a poster on social media showing the recent price surges of Meme coins. The poster shows that since GOAT was first listed on the platform, its highest price surge reached an astonishing 10,599.20%, and the average price surge of newly listed Meme coins also reached as high as 1,895.81%. Although the traditional tracks in the crypto field are skeptical of Meme coins, which makes some users feel frustrated, this has actually stimulated their motivation to seek social recognition and data support. They not only actively promote Meme coins in the community, but also establish emotional connections with like-minded people in the process.

According to LBank's official data, the platform listed more than 50 Meme coins in the third quarter, of which 28 had price surges over 200%, 14 had price surges over 500%, and 9 even had price surges over 1,000%.

However, it is also worth noting that while some people make money, others lose everything. Intelligent investment in Meme coins is very important. A recent report by CoinW shows that two-thirds of the over 1,500 Meme coins promoted by KOLs have "died", with a drop of more than 90%. In contrast, 64% of the top 25 Meme coins held by Wintermute have been listed on Binance, with an amazing hit rate. Coins like PEPECOIN, NEIRO, GOAT, POPCAT, and REKT are all among Wintermute's top holdings.

To invest in Meme coins intelligently, you need to know what drives the success of a Meme coin that can achieve a hundredfold or thousandfold increase.

Driving Factors Behind Hundredfold and Thousandfold Increases

We can analyze the driving factors behind the success of a Meme coin from the following four aspects:

• Emotional resonance of the narrative content:

Meme coins convey emotions and stories through images, such as the affinity of $Doge to dog lovers, and the images of the sad little green frog and the sloth of $PEPE, which were popular emoticons and movie characters even before becoming Memes. In terms of emotional transmission, the narrative of Meme coins is simple and direct, easy for the general public to understand and accept, similar to the evaluation of "every additional formula will reduce the audience by 10,000" for "The Three-Body Problem". Down-to-earth content is more likely to become popular, which can easily build a simple but pure mass foundation.

• Macroeconomic and market environment:

The current bull market has indeed attracted many new investors, but they may feel confused about complex technical concepts and have no idea where to start. Meme coins, with their simplicity and low prices, actually provide an easy-to-understand and participate opportunity. And the downturn in the traditional economic cycle has also promoted the popularity of Meme coins, as the weakness of the traditional economy has reduced the public's desire to explore new technologies, and Meme coins, with their low energy consumption and easy acceptance, have met the market's demand.

• Promotion by KOLs and community dissemination:

KOLs play a key role in the creation, issuance and promotion of Meme coins. Their statements have strong incitement, which can influence people's investment decisions. Community promotion is also an important part of Meme coin marketing, and the interaction between KOLs and communities helps to form consensus and drive price bubbles.

• Wealth creation effect and FOMO sentiment:

The development of Meme coins benefits from its wealth creation myth and the FOMO panic of missing out on opportunities. The stories of getting rich quickly through pump-and-dump and the FOMO sentiment spread by the community can give the already-ready-to-take-off Meme coins an extra boost, often leading to a skyrocketing price.

The Combination of Meme and DeFi

The fusion of Meme and DeFi has opened up novel paths, allowing users to play more diverse roles in the token economy, beyond simple market speculation and speculation. Users can now actively participate in the Meme ecosystem through staking, mining, and liquidity support in various ways.

Staking mechanism: Holders of Meme coins have the opportunity to stake their tokens on DeFi platforms in exchange for rewards. These rewards may be in the form of additional Meme or other tokens, providing incentives for users to hold and actively engage in the Meme ecosystem.

Mining process: Mining usually involves lending the held Meme tokens through smart contracts in exchange for interest income. On the DeFi platforms of Meme, these lending activities promote various activities such as trading and liquidity support, and users can earn profits by participating in these activities.

Liquidity support: Meme can also create liquidity pools, allowing users to contribute their Meme tokens to the pool for others to trade on decentralized exchanges. This not only allows users to share the trading fees, but also contributes to improving the liquidity and trading efficiency of the Meme coin market, for which users can also receive corresponding rewards.

Conclusion

In summary, we can also see that the success of MEME coins is not just hype, but the result of the combined action of multiple factors. When discussing the future development of MEME coins, we can approach their integration with DeFi with an open mind. This combination may provide MEME coin holders with more diversified participation channels, thereby to some extent transcending simple market speculation. This integration may indicate that MEME coins are not just short-term wealth creation tools, but have the potential to develop into a new economic model driven by the community. In the future, MEME coins may continue to attract more innovation and capital, bringing new vitality and possibilities to the global economy.

Research Report