- Memecoins have shown a 600% growth in 2024
- Along with this, 97% of memecoins have ceased to exist
- RWA and AI developments aim to provide new, more sustainable opportunities
Memecoin’s bull run happened in 2024 – we can see this due to their impressive growth. During the first quarter of 2024, their value increased by more than 1,300%, setting them apart from other crypto assets. Despite such impressive performance, many factors could affect their long-term sustainability.
The Rise of Memecoins and Their Impact on the Market
According to a Binance study published in June 2024, memecoins have seen a significant 600% year-over-year growth. This is ten times the growth of Bitcoin over the same period. Speculative investments and endorsements from celebrities such as Iggy Azalea and Andrew Tate have contributed to this increase.
Tokens such as MOTHER and Top G have become popular among investors, which has also contributed to the increase in interest in memecoins. Mentions of memecoins on social media increased by more than 50%, confirming their widespread use and discussion.
Problems and Risks of the Memecoin Market
But memecoins face serious challenges. In August 2024, 1.7 million tokens were registered on the PumpFun platform, but most may not be sustainable. According to the report, about 97% of memecoins disappear from the market, with more than 2,000 tokens disappearing every month.
This indicates the high risks associated with investing in memecoins. The average price appreciation in the first quarter of 2024 has been more profitable than other assets, but this profitability may be short-lived.
The Future of Memecoins and the Outlook for the Market
The current memecoin bubble may not provide long-term liquidity and sustainable growth. The future of the market is likely to be driven by real-world assets (RWAs), which is the second most profitable narrative that gained a little under 300%, and Artificial Intelligence (AI) focused tokens because of the need for the quality data validation – show more stable and sustainable trends.
These areas could be the foundation for the next bull market, providing more real problem-solving capabilities, that could mean more long-term investment opportunities.
Conclusion
Memecoins have grabbed their share of the glory, as it was with NFT, and now more applications must wait for them to endure.
For example, one trend showing well is PoltiFi, which is still a memecoin but with more concrete ideas or personalities behind it.
However, their great move, even in the context of all the ups and downs, is that they have shown that anything can be tokenized and this opens the door for RWAs in many ways.
We will closely watch how this trend will hold and change in the near future.
