The "Speculative" Era of Memecoin
Many people say that Solana in this cycle is like Ethereum in the previous cycle, and a very important proof is that the wealth effect brought by Pump.fun in this cycle is exactly the same as the wealth effect brought by Ethereum's ICO in the previous cycle. We have seen many coins that have increased hundreds or even thousands of times in just a few days.
Everyone can issue their own Memecoin on Pump.fun, which undoubtedly brings funds to the chain. There are a lot of Web3 stock funds that used to be on CEX, as well as a lot of Web2 incremental funds, and even the perfect Moonshot platform that connects Web2 and Web3 Memecoin's last mile of fiat currency trading.
Related reading: After connecting the "last mile" of Meme coins, does Moonshot also have a listing effect?
Perhaps it is because of this "wealth" effect and the extremely low threshold for token issuance that many people just "take a bite and run away". Many people believe that the investment behavior in Memecoin has become a speculative behavior of "passing the drum", and many Memecoin players believe that the key to rushing meme is to "run faster".
This wealth effect has attracted many new on-chain users, and the market capitalization of most Memecoins is inflated. Some "hard-found angles" can bring a lot of FOMO to many people, quickly pushing up the market value, and quickly cashing out after the market value approaches $20 million, causing a large number of early holders or project parties to be trampled and quickly return to zero, and many Memecoins with "narrative angles" also gradually showed a "zero" form after a brief surge.
It is very interesting that in Web3, where the speed of information transmission is extremely fast in our traditional cognition, it takes a long time to reach a consensus and realize value discovery. Many Memecoins that have emerged now have gone through this process. For example, GOAT, after the token was issued, it quickly reached a market value of around $20 million, and then quickly fell back. At around $10 million, it experienced a relatively long sideways consolidation before its value was discovered and continued to rise. Another example is Ban, which quickly reached a market value of around $5 million after the token was issued, and then fell back by more than 80% in the PVP and group FUD, and it took more than 20 hours to coalesce the group consensus and quickly push up the market value. There are also "betrayed by the project party" like ACT and Pnut.
Why do these emerging Memecoins with narrative angles take so long to discover their prices? Undoubtedly, this is strongly related to the PVP logic that has already taken root in people's minds. The "speculators" are afraid that the early holders will "dump and cash out" after the price surges, and they are still in the "PVP" logic.
And all of this has seen new changes recently.
The "Crypto Gold Rush" Era of Memecoin
The election of Trump as the President of the United States has ushered in the era of the "Crypto Gold Rush".
Not only does it mean that mainstream cryptocurrencies represented by BTC are gaining market recognition, and BTC ETFs will have political endorsement, which will attract more stock investors to invest in the cryptocurrency market, but it also represents the relaxation of cryptocurrency regulation in the US political arena, the possibility of DeFi tokens being regulated as "securities" has been reduced, and Meme coins can enter the investment horizon of US investors.
CoinBase has included Pepe in its listing roadmap, Binance has launched ACT and Pnut, and Elon Musk has repeatedly voiced his support for the squirrel Peanut on social media and written that he will establish a government efficiency department named after Doge coin, the influence of Meme coins is rapidly expanding and being recognized. Undoubtedly, Elon Musk is a staunch supporter of Meme coins, "America is being saved by a squirrel and meme coins."
As Murad once said, "We are at the beginning of the Meme SuperCycle." The average market capitalization of Meme coins is also constantly rising. After CoinBase launched Pepe, Pepe's total market capitalization once exceeded $10 billion. After Binance launched Pnut and ACT, Pnut's market capitalization reached a high of $2.5 billion, and is currently at $1.8 billion, and ACT's market capitalization is close to $1 billion. Goat's market capitalization is around $1 billion, and Doge's total market capitalization is ranked in the Top5. The market's recognition of meme coins has visibly increased.
On November 13, Moonshot said on its social platform that the platform's fiat currency inflow has set a new record. "Non-crypto native users are pouring in in large numbers".
The "Investment" Era of Memecoin
Binance is also working hard to support the development of Meme coins. The previous logic of CEX listing Meme coins was mainly to look at the market capitalization, supplemented by the so-called "Listing Fee", but Binance's listing of ACT and Pnut heralds a new beginning of CEX's support for Meme coins.
What is important for Meme coins is no longer the market capitalization, but the community and the angle, after all, ACT with a total market capitalization of $20 million can still be listed on the top CEX, and after the announcement, it also generated a very prominent wealth effect, and currently ACT's market capitalization is $800 million, and individual investors can use information arbitrage to make more than 10 times the profit through pure manual means.
This wealth effect not only reflects Binance's recognition and support for the Memecoin industry, but also points the way for the Memecoin community. Communities with outstanding narratives and angles, and excellent community culture, have a good chance of being listed on CEX. We can also see from the recent new projects launched by Binance that nearly half of the newly launched projects are Memecoins, using the CEX channel to spread Memecoin culture and better develop Memecoin culture.
For individual investors, the angle of investing in meme has changed, it is no longer rushing to the internal PVP, meme coins without angles and lacking narratives are no longer popular, some primary investors believe that this is actually more beneficial to the market, no longer need to "dig for gold in the shit", fill in a bunch of projects that can't really launch, consume the principal in PVP, but instead look more at the angle and narrative, and then build the community and promote the project to the exchange, this is more in line with the essence of memecoin, rather than relying on "rushing early, running fast" to make money.
The market's imagination space for Memecoins has been further opened up. The situation where the market value approaches $20 million and quickly cashes out, causing a large amount of trampling and exit, resulting in an almost "zero" ending, has become less common. The market used to think that the dividing line for whether it was a "large MC memecoin" was $20 million, and many "medium MC memecoins" were knocked down at the $20 million threshold.
But now, Pepe is preparing to be listed on CoinBase with a market capitalization of over $10 billion, ACT has been listed on Binance with a market capitalization of over $500 million, GOAT has a strong AI meme narrative platform behind it with a market capitalization of over $1 billion, and after Elon Musk frequently voiced his support for Pnut, Pnut's market capitalization has exceeded $1.5 billion. The market is once again full of expectations and aspirations for the "large MC memecoins" above $1 billion. The market is gradually realizing that Murad's saying that "the direction of the Memecoin super cycle is that 7-8 Memecoins will become huge digital tribes with a value of over $20 billion".
For DEVs who issue Memecoins, the pricing of Memecoin market capitalization has increased, with less "cut and run", more community building, more building of the culture itself, and a more complete process of connecting with CEX.
This is also good news for individual investors. Investing in Meme is more like investing in. Examine the perspective and community, find meme coins with potential in the early stage, wait for price discovery, and face more Web3 groups or Moonshot Web2 groups on CEX.
There are also many "diamond hands" voices in the market, and the market positions the market value of meme coins at billions or even tens of billions of dollars. Many people say "Pnut is either 4B or zero, and I will never sell in the middle!" The logic of PVP seems to have changed, and the players who bought Pnut in the early internal market have now made a profit of more than 21,000 times, earning a profit of more than $4 million at a cost of 0.1sol, but they still firmly hold it.
As of the time of writing, many "large MC memecoins" that had previously achieved some success but ultimately did not fully break out, and whose market value has experienced a significant decline, have seen a significant increase in their market value.
Many Memecoin projects that we once thought had "zeroed out" have had their value rediscovered, and their value may be explored in the expectation of being "Listed on CEX" in the future. There are also many memecoins that truly represent a community culture that have been issued, returning to the original cultural value of Memecoin. Behind them may be an AI proxy agent, or a new "internet celebrity animal", or an eagle that needs to be released.
As Murad said, "Meme coins are a test. Seeing them as jokes and funny pictures is a failure. Understanding them as unstoppable tokenized communities is the true enlightenment." We have already seen the signs of the gears of the Meme SuperCycle slowly starting to turn, and the Meme culture has moved beyond PVP and opened a new chapter.
Welcome to join the official BlockBeats community:
Telegram subscription group: https://t.me/theblockbeats
Telegram discussion group: https://t.me/BlockBeats_App
Twitter official account: https://twitter.com/BlockBeatsAsia
