⚠️🚨LONG READING 🚨⚠️
Because it’s tricky for me to remember everything I read, I’m constantly taking notes when I think it’s worth it. 🗒️
I have just reorganized some of my scattered thoughts about memecoins.
Here are a few lines for your review.
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🔥SATIRE TO WEALTH: MY NOTE ON THE STATE OF $MEMECOINS IN Q1
In the past few months, memecoins have been exploding in popularity among the “crypto mainstream”, turning the whole ecosystem on its head with their market growth. They are one of the fun parts of the space; a playful quirk of the industry that often starts as private jokes but can moonwalk their way to multi-million market caps shockingly fast. They’re like the back-row students, who end up making it rain – think Dogecoin, which began as a doggie wisecrack but now has everyone howling all the way to the bank.
Basically, they can be seen as a cryptocurrency subgenre, often brought on-chain as parodies or from viral internet memes. Unlike so-called 'utility cryptocurrencies', they usually don’t have a clear utility or purpose but have recently gained (new) fame and value through the urge of Web3 socials, strong community support, and the $tips culture. They add a dash of humor and light-heartedness and remind us that not everything in the crypto space has to be soooo serious—we’re also here for fun. But on top of creating joy and happiness, they’re also a chill gateway for all the crypto-curious, offering a less intimidating entry point into this overwhelming jungle.
While, of course, they might not always be the pillars of financial stability, they bring a wave of freshness, create a strong community spirit, and sometimes they can surprise us by showing that even a joke can generate value. It can be a bit of a gambling vibe, though, but being in crypto means living on the edge, right?
Recently, it has been super tricky to stay on top of everything about $memecoins and to read about all the facets and use cases, but I’ve taken a few personal notes on several points that will be useful for things I’ve been working on.
WHERE WE ARE AT. ദ്ദി ˉ͈̀꒳ˉ͈́ )✧
With the surge in memecoins’ perf in 2024, with an average return of 1,312.6%, it’s clear they’re making a big splash in the crypto market. Once perceived as random digital assets tied to pop, and internet culture, memecoins have far exceeded expectations, showcasing their potential as trustworthy + solid investments, and giving different communities a sense of ‘autonomy.’
The winning part lies in their widespread accessibility, which invites investors and degens from all horizons to engage. When combined with the power of blockchain-based social media like Orb or Farcaster, and the drive of online communities, these tokens foster a dynamic environment where they can quickly gain traction and value. However, their inherent volatility presents a dual prospect: the potential for substantial gains and the risk of big fluctuations. In other words, the stakes are high. That’s the thrill of the game.
A PROFITABLE NARRATIVE <(˶ᵔᵕᵔ˶)>
This convergence of easy access, momentum, and market volatility has not only brought memecoins in all the crypto convos but has also signaled a transformative-evolutive phase in the broader digital asset domain. The sector’s market capitalization has soared to $ 60.93 billion, representing 2.32% of the total cryptocurrency market, marking a milestone in its trajectory.
They have also proven to be the most profitable narrative in the first quarter of 2024. The data from CoinGecko highlights that these tokens have yielded an average return of 1,312.6% across the board. This performance is a clear reflection of the investor's interest in memecoins, which are increasingly seen as a legit investment rather than just a fad. Among the various memecoins, BRETT for example stands out with its remarkable returns of 7,727.6% by the end of Q3 2024. Such a figure not only demonstrates the potential for high returns in the market but also reveals the shifting dynamics within the crypto space. Investors are now looking beyond traditional digital assets and exploring the possibilities within the memecoin sector, which continues to evolve and expand its influence in the market.
Their rally contrasts with the slump of traditional tokens, highlighting a change in the crypto investment landscape, as reported by recent analyses.
COMMUNITY AND CULTURE: THE $BONSAI APPROACH ( ◡̀_◡́)ᕤ
The prosperity of memecoins isn’t solely determined by their market value; it's deeply rooted in the resonance of the memes they represent and the story they tell. It also hinges on the strength of their communities and how they cultivate a sense of belonging, familial bonds, and loyalty, amplifying the token’s reach through the organic dissemination of ideas and content.
Consider $BONSAI as a good example of this phenomenon. Positioned as a DN-404 token on the Polygon network, it epitomizes innovation and collaboration within Web3 socials. With a market cap of ~$ 6M and a ranking of #1685 on CoinGecko, its influence and the trust of its community are evident. The token's integration with the Lens Protocol underscores its dedication to leveraging decentralized networks for social good. Because it enables on-chain actions directly from Lens posts, $BONSAI empowers users to control their content, monetize it, and doing so, level up creativity and expression within the new internet.
Moreover, this approach highlights the symbiotic relationship between community engagement and the bullish sentiment surrounding $BONSAI. It showcases how its strategy generates momentum and encourages growth. Through reinvestment in its user base and emphasis on ecosystem support and airdrops, it brings a sense of ownership and involvement among stakeholders, ensuring a sustainable and inclusive future.
Regarding the next steps, $BONSAI might hold the potential to revolutionize content monetization and social media interactions, ushering in a new era of digital asset management.
THE WEB3 SOCIAL CEMENT ꒰ᐢ⸝⸝•༝•⸝⸝ᐢ꒱⸒⸒
While some are just speculative assets, others are the heartbeat of Web3 social platforms, bringing a revolution in both finance and community engagement. These tokens are the base of an ecosystem where the enjoyment and functionality of the community are top priorities. They build a deep sense of belonging, giving creators not just ownership over their content but also over the very dynamics of their social interactions.
In this new economy, creators can finally monetize their content and posts within the socials, through collecting options or the tips economy. This new paradigm of ownership extends into the NFTs space, where minting becomes a celebration of the community’s creativity and innovation.
Tokens like $DEGEN, $ENJOY, and $BONSAI play pivotal roles in their distinct environment for example. $DEGEN captures the Farcaster community’s playful yet bold spirit. $ENJOY reflects the NFT’s Zora community’s joy and satisfaction from active participation and contributions. Meanwhile, $BONSAI represents the steady growth and interconnectedness of the Lens community.
These tokens embody the ethos and aspirations of their respective environment, marking a move in how value and engagement are perceived in the space.
WHAT’S NEXT (could be) ଘ( ･ω･)_/ﾟ･:*:･｡☆
The integration of Decentralized Finance features into memecoin ecosystems is a trend that is expected to continue shaping these digital assets. More and more memecoin projects are exploring ways to incorporate DeFi functionalities such as liquidity provision, yield farming, and decentralized exchanges (DEXs). By adding these features, memecoins aim to enhance their utility and value proposition, thus attracting investors seeking additional opportunities for yield generation and financial innovation.
Looking ahead, the potential for memecoins to continue influencing the crypto market is substantial. As they integrate more sophisticated DeFi features, they could transition from being seen as simple novelties to becoming integral parts of the broader ecosystem. This could lead to them having a more stable role in the market, with the possibility of being used for more than just speculative investments.
However, with increased popularity comes greater regulatory scrutiny. Memecoin projects will need to navigate compliance, transparency, and accountability to ensure their long-term sustainability and legitimacy. Synergistic governance and participation will also continue to be central to the success of any memecoin projects, with communities wielding influence over project development and ecosystem flourishment.
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