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In a year marked by significant volatility in the cryptocurrency market, memecoins have become key players, surpassing bitcoin (btc) and the rest of the largest cryptocurrencies in the ecosystem.
This trend was underlined by the recent reflections of market expert Miles Deutscher, who x.com/milesdeutscher/status/1843691638578917376″ target=”_blank” rel=”nofollow”>highlighted a presentation by memecoin analyst Murad at the TOKEN2049 conference in Singapore.
Memecoins challenge traditional cryptocurrencies
According to Murad, only 43 tokens have outperformed bitcoin in 2024, of which 13 are memecoins. Notably, eight of the top ten on the market this year are also memecoins.
Murad emphasized that this cycle is different from previous ones and stated: “The memecoin cycle is not a prediction; has already begun: memecoins dominate practically all metrics.”
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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 mere 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 fosters community and “emotional connection” among investors. Murad noted that these tokens allow users to participate in a shared experience, providing real value through stories that “create trends and provoke movements.”
Success stories with significant gains, such as those seen with tokens like dogwifhat (WIF) and Pepecoin (PEPE), spread rapidly, fueling interest and excitement in the memecoin space over the past year.
According to Deutscher, the most successful cryptocurrencies have developed strong communities, often resembling “cult followers.” Cryptocurrencies like bitcoin, ethereum, and Dogecoin have thrived on this dynamic, and memecoins are fully embracing it.
SPX and GIGA capture retail attention
Murad further explained that the recent performance of alternative currencies on platforms like Binance has further pushed the memecoin narrative. Almost all of the altcoins listed this year are trading below their listing price, with only two exceptions: WIF, a memecoin, and JUP, which facilitates memecoin trading.
Murad further alleges that retail investors prioritize making money (70%), having fun (20%) and having a sense of belonging (10%). Murad argues that memecoins embody this speculative nature, similar to Initial coin offering (ICO) of 2017, but in a new form.
Instead of initial coin offerings, Murad sees memecoins 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 ideas have already influenced market dynamics, sparking one of the strongest memecoin rallies of the year.
Tokens called “Murad coins” such as SPX and GIGA have seen substantial gains, which has resonated 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
