- Memecoin gained 14.3% market share in Q2 2024, highlighting significant investor interest.
- Simplified token design and reduced lock allocation for meme coins will foster healthier and more sustainable market conditions.
In 2024, the rise of meme coins caused a notable spike in market interest and quickly became one of the most prominent trends in the cryptocurrency space.
A recent report from CoinGecko revealed that meme coins led the market trend in the second quarter, accounting for 14.3% of the market share, a consistent trend since the beginning of the year.
Source: CoinGecko
VanEck executives recommend that crypto projects…
Addressing this phenomenon, VanEck Portfolio Manager Pranav Kanade highlighted that Memecoin embodies four key elements that other crypto projects should adopt:
According to Kanade, one of the key factors is the immediate appeal of memecoins, offering an immediate product market fit that resonates strongly with retail investors.
He said that for a project to stand out, it must streamline its approach by simplifying the token design, articulating a clear product vision, and demonstrating how the project's execution can deliver value to token holders. argued that it was necessary.
He added:
Source: Pranav/X
Kanade’s insight came to light during a discussion on the Token2049 panel where Murad Makhmudov introduced the idea of a “memecoin supercycle” after moving away from a Bitcoin-centric view.
He emphasized the importance of minimizing the proportion of “locked” tokens allocated to early investors, as a large allocation could lead to a fire sale in the market upon unlocking. This undermines long-term stability and trader confidence.
By limiting the sharing of these locked tokens, projects can establish a more transparent and sustainable tokenomics model. This reduces concerns about sudden sales and promotes a healthier market environment for long-term investors.
Rising trend of meme coins
That being said, the memecoin community has experienced explosive growth due to humor, celebrity endorsement, and FOMO.
Tokens like Dogecoin [DOGE]Shiba Inu [SHIB]Pepe [PEPE] Gain traction with high-profile endorsements, giving credibility and excitement.
For example, Elon Musk's support for DOGE caused a significant price spike, while new celebrity-backed tokens iggy azalea's [MOTHER] and hulkamania [HULK] It quickly attracted investors.
However, this surge has also led to an increase in fraud. For example, during the hype surrounding Satoshi Nakamoto's identity, tokens like Len Sassaman [LEN] 85% reduction, Sasha Cat [SASHA] According to CoinMarketCap, it fell 89%.
In contrast, meme coins linked to Peter Todd [PeterTodd] It jumped 1,591%.
Yet, as seen in projects like Sundog, these communities somehow foster a deep loyalty and commitment that goes beyond profit. [SUNDOG]has a huge following on social platforms and is highly rated on DEXTools.
Amid these talks, the memecoin market reflected a 2% rise in the past 24 hours, with a market cap of $54 billion, according to CoinGecko.
