The Rise of MEME Tokens: From Internet Culture to a New Landscape in the Crypto Market

The explosion of MEME tokens in 2024 indicates a shift in market investment logic. MEME has become a mainstream investment category favored by investment institutions and market funds.

The Internet Origin of MEME

The concept of MEME predates blockchain technology and originates from internet culture. Currently, outstanding MEME projects mostly stem from viral phenomena in internet communities, such as Doge, SHIB, and PEPE. These projects represent the communication culture of global internet users and are referred to as "grassroots culture".

MEME expresses people's thoughts in specific scenarios through concise means (such as short texts, innovative vocabulary, images, and memes). Its virality makes outsiders willing to understand and integrate into it. The sense of belonging is the core value of MEME and also the main driving force behind the rise in MEME Token prices.

The Fusion of MEME and Blockchain

Blockchain technology has given value to MEME. Bitcoin can also be seen as a kind of MEME in its early days. The birth of DOGE was a satire on the phenomenon of altcoin proliferation, marking the arrival of the MEME 1.0 era.

The popularity of altcoins and the chaos of ICOs during the bull market in 2017 laid the foundation for the second rise of DOGE. In 2021, DOGE gained market recognition again, and dog-themed MEME projects like SHIB emerged, marking the entry of MEME into the 2.0 era.

In the market rise of 2024, MEME began to develop again. The sluggishness of the mainstream market partially reflects investors' resistance to the high valuations of VC coins and the behavior of certain "value" projects. The fair distribution and price performance of MEME addressed the pain points of investors, garnering significant attention, and MEME has entered the 3.0 era.

Characteristics of Successful MEME Projects

Not all MEME have investment value. By analyzing successful MEME projects, we can summarize some common characteristics:

1. Low barrier to entry: From mining with computing power to fair distribution, allowing community users to participate at a low cost.

2. Value dimension transformation: shifting from purely network cultural applications (such as tipping) to more value dimensions, such as SHIB's Swap, PEPE's deflationary mechanism, etc.

3. Celebrity Effect: Supported by celebrities, KOLs, or public figures, such as Musk's promotion of DOGE.

4. Price performance: The price increase attracts retail investors, thereby enhancing the influence of MEME Token.

5. Institutional Takeover: Allowing institutions to take over from retail investors is an important sign of MEME's success.

The Development Goals of MEME Token

Successful MEME tokens not only rely on speculation but also need to consider economic models and application scenarios. For example, DOGE's tipping function and POW mechanism, and the Swap platform developed by SHIB.

Recently, the MEME project has further increased its application scenarios and Token economic cycle, such as the performance of PUFF in the Mantle ecosystem. These projects are gradually approaching the traditional "value coin" in terms of development direction, but the MEME attribute remains the main distinguishing factor.

Future Outlook

MEME has gained recognition from numerous investors, using internet culture as a user base, making it easier to resonate with users. This is a low-cost and fast way to enter the market and build a community, which may become a key cold-start strategy for grassroots projects.

However, projects that rely solely on the concept of MEME find it difficult to sustain development. Mid-term technological follow-up is crucial for attracting institutional investors and exchanges. In this process, chips may gradually shift from retail investors to institutions, driving project transformation and development.

Retail investors, after making a profit, usually develop a greater sense of identification with MEME culture, creating a positive cycle that helps MEME gain more recognition. In the future, MEME projects need to continuously explore practical applications and value creation while maintaining cultural characteristics to establish a foothold in the highly competitive crypto market.