In a year marked by significant volatility in the cryptocurrency market, memecoins emerged as key players, outperforming. Bitcoin (BTC) and the rest of the largest cryptocurrencies in the ecosystem.
This trend was highlighted by recent information from market expert Miles Deutscher, who highlighted a presentation by memecoin analyst Murad at the TOKEN2049 conference in Singapore.
Memecoins challenge traditional cryptocurrencies
According to Murad, only 43 tokens outperformed Bitcoin in 2024, with 13 of them being memecoins. Notably, eight of the top ten performers in the market this year are also memecoins.
Murad emphasized that this cycle is distinct from previous ones, stating: “The memecoin cycle is not a prediction; It’s already started – memecoins are dominating virtually every metric.”
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The rise of memecoins can be attributed to several factors, particularly their ability to resonate with retail investors seeking community, identity and excitement rather than just potential financial gain. As Murad says, “Memecoins are a superior version of altcoins.”
The appeal of memecoins goes beyond speculation; they are alleged to have cultivated a culture that promotes community and “emotional connection” between investors. Murad noted that these tokens allow users to participate in a shared experience, bringing real value through stories that “create trends and trigger movements”.
Success stories of significant gains – like those seen with tokens like dogwifhat (WIF) and Pepecoin (PEPE) – spread quickly, fueling interest and excitement in the memecoin space over the past year.
According to Deutscher, the most successful cryptocurrencies have developed strong communities, often similar to “cult followings”. Cryptocurrencies like Bitcoin, Ethereum, and Dogecoin have thrived on this dynamic, and memecoins are fully embracing it.
SPX and GIGA attract retail attention
Murad further explained that the recent performance of altcoins on platforms like Binance further fueled the memecoin narrative. Almost all altcoins listed this year are trading below their listing price, with just two exceptions: WIF, a memecoin, and JUP, which facilitates memecoin trading.
Murad further claims that retail investors prioritize making money (70%), having fun (20%) and feeling a sense of belonging (10%). Murad argues that memecoins embody this speculative nature, similar to Initial Coin Offering (ICO) boom of 2017, but in a new way.
Instead of initial coin offerings, Murad sees that memecoins are enabling early-stage investments at lower valuations, which is in stark contrast to altcoins, where most of the upside is captured in private markets.
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Deutscher also praised that as the memecoin phenomenon continues to grow, Murad’s insights have already influenced market dynamics, triggering one of the strongest memecoin rallies of the year.
Tokens dubbed “Murad coins” such as SPX and GIGA have seen substantial gains, resonating with retail investors who are drawn to the excitement of potential profits.
At the time of writing, SPX is trading at $0.575, a notable 35% increase in the 24-hour period, showing the impact of Murad’s participation in TOKEN2049 in early September this year.
Featured image of DALL-E, chart from TradingView.com