# 2024: The Year of Meme Coins in Cryptocurrency Markets

As the year draws to a close, one word that can define 2024 for the cryptocurrency market is ‘Meme Coins’. Amidst the rise of numerous Layer 1 and Layer 2 projects backed by substantial fundraising and high expectations, most failed to meet the mark. In stark contrast, meme coins demonstrated remarkable performance, with 11 projects surpassing a market capitalization of $1 billion without venture capital support.

## Pre-September: The Setting Stage for Meme Coin Boom

Looking back at the period before September, it was clear the meme coin market was preparing for a massive rally. At the heart of this rise was Dogwifhat ($WIF), a meme coin featuring a dog with a hat, which surged by 7000% in just three months, reaching a market cap of $5 billion. This extraordinary performance was driven by consistent support from crypto influencer Ansem.

Following $WIF’s success, numerous meme coins emerged, often launched through pre-sales that raised funds prior to token issuance. However, most of these tokens failed, falling into what seemed like rug pulls. The pre-sale token issuance method faced criticism for its lack of transparency in distribution and the unverified credibility of project teams.

Amidst these challenges, Solana-based meme coin issuance platform Pump.fun gained attention. It allowed anyone to issue meme coins easily and at very low costs without complex coding or tokenomics design. As a result, many started using Pump.fun, making it one of the most successful consumer apps in the Solana ecosystem. Its success hinged on a simple structure and fair token distribution, contrasting with the high FDV (Fully Diluted Valuation) but low initial circulation that plagued many projects and led to frequent price dumps post-listing.

## Post-September: Explosive Growth of Meme Coins

### Murad Mahmudov’s Meme Coin Supercycle Speech

Although the meme coin narrative had started to wane after the $WIF surge, September marked a new beginning. Central to this resurgence was Murad Mahmudov’s speech at Token2049, where he argued that meme coins, beyond being just fun, were evolving into a new asset class based on strong communities and a sense of belonging. He highlighted key features of successful meme coins: passionate communities, fair token distribution, and original storytelling, predicting that the meme coin supercycle would peak in 2025.

Murad’s advocacy sparked renewed interest, leading to dramatic gains for $SPX6900 and other “Murad picks” like GIGA, HarryPotterObamaSonic10Inu, and POPCAT. These coins achieved significant success through unique meme stories and community-centric approaches.

### The Rise of AI-Driven Meme Coins: $GOAT

Another notable trend post-September was the rise of AI-driven meme coins. The focus was $GOAT, propelled by the Truth of Terminal (ToT) Twitter account, which depicted itself as a suffering AI promoting a meme-based religion. Gaining attention after A16Z’s Marc Andreesen sent 50,000 BTC to ToT, $GOAT’s issuance on Pump.fun led to its explosive popularity, surpassing a $1 billion market cap.

Unlike past AI-related meme coins, $GOAT’s narrative transcended mere technical curiosity. ToT not only spread its religion actively but also operated autonomously, holding and receiving cryptocurrency through a blockchain wallet, evolving into an ‘AI influencer’ role.

### Political Impact and Meme Coin Adoption

The meme coin mania further intensified with the approaching U.S. elections, mirroring stock market behavior during election periods. The euthanizing of popular social media mascot Peanut by New York’s DEC ignited a political firestorm, fueled by Elon Musk’s commentary on social media.

Musk’s support turned $Pnut into a powerful political symbol, driving its market cap to $1.4 billion and subsequently to $2.5 billion post-Binance listing. This surge led to a broader rally in Dogecoin ($DOGE) and newly created $DOGE meme coins.

## DeSci – Combining Decentralized Science and Meme Coins

The latest noteworthy trend involves DeSci (Decentralized Science)-themed meme coins. Historically under the radar, DeSci recently gained traction following a joint appearance by Binance’s former CEO Changpeng Zhao and Ethereum’s co-founder Vitalik Buterin at a Bangkok event. The subsequent investments announced by major crypto figures further fueled interest in DeSci.

DeSci utilizes meme coins for research funding, providing projects with the means to continue previously stalled scientific endeavors. For example, $RIF and $URO, launched on the Solana-based Pump Science platform, raised funds for research into prolonging fruit fly lifespans, thereby illustrating the practical utility of meme coins in enabling decentralized scientific advancements.

## TikTok Trends and Gen Z Engagement

Another significant meme coin that surged recently is $CHILLGUY, originating from a TikTok meme. The coin rapidly ascended to a $500 million market cap, driven by the virality among TikTok users and direct engagement from Gen Z.

Interestingly, $CHILLGUY has a higher number of holders with smaller portfolios compared to other meme coins, reflecting the characteristics of TikTok’s predominantly Gen Z user base. This trend indicates a potential shift towards broader mass adoption of cryptocurrencies, facilitated by platforms like Phantom Wallet and Jupiter, which rank highly in app store charts, surpassing well-known apps like PayPal and Reddit.

## The Future of Meme Coins and Impacts on Crypto

Summarizing the meme coin trends since September, it’s evident that the landscape is rapidly changing with extreme volatility. While historical examples like Dogecoin, Shiba Inu, and PEPE had significant runs, 2024 stands out for its impactful meme coin boom, characterized by swift thematic shifts and market fluctuations.

However, profiting from meme coins remains challenging. Binance Research indicates that 97% of meme coins fail shortly after launch. The ease of creating meme coins leads to fleeting public interest and potential developer dumps. Prospective investors should meticulously analyze factors like community activity and storytelling to make informed decisions, as FOMO-driven investments often result in losses.

Ultimately, the future of meme coins depends on the direction of their surrounding communities and trends. Despite skepticism, meme coins like DeSci and TikTok-driven projects show positive impacts, exploring new possibilities in blending crypto’s potential with community and technological innovation.