Recently, a friend said that memes are not fun anymore this year, why are copycats not increasing? Actually, that’s not the case!
Benefiting from Musk's call, the market value of Dogecoin exceeded 60 billion US dollars, driving the meme sector to another climax. Shib exceeded 15 billion US dollars, Pepe also exceeded 10 billion US dollars, and other second-tier meme coins also easily reached a market value of 1 billion US dollars.
ACT and PNUTS launched on Binance increased by dozens of times in just a few days, and their market value even exceeded 2 billion US dollars.
The market has been extremely polarized since then, and it is ironic that the market value of a bunch of meme coins exceeds that of many copycat industry leading coins. Doge, Shib, and Pepe have reached a market value of tens of billions of dollars, which has driven the potential market value of meme coins in the future. Meme coins that could exceed $100 million before now have a potential of $1 billion, which has brought great wealth effects to retail investors. Therefore, unless a bear market comes, meme coins will most likely run through the entire cycle like 1co in 2017 and DeFi in 2020.
Musk’s orders have both short-term and long-term effects on the meme coin market.
Short-term impact
• Large price fluctuations: After Musk’s call, the price of related meme coins will rise sharply in a short period of time. For example, after Musk’s call for PNUT on November 13, 2024, it briefly broke through $2.5, with a 24-hour increase of 422.3%. On November 11, affected by the listing of Peanut the Squirrel on Binance, PNUT briefly reached $0.28, with an increase of 141.15% in 1 hour.
• Dramatic increase in market attention: With Musk’s huge influence, a large number of investors can be quickly attracted to the meme coin market, making related currencies the focus of the market, triggering investors to follow suit and buying, pushing prices further up.
• Increased trading activity: After the call, investors' trading enthusiasm increased, and the trading volume of related meme coins increased significantly. SoSoValue data shows that Meme coins occupy six seats in the top 10 non-stable coin trading volume in the crypto market on November 14, 2024. Meme projects continue to attract a lot of liquidity.
Long-term effects
• Far-reaching impact on some currencies: For example, Dogecoin, which has been deeply bound to itself by Musk’s long-term orders, has always maintained a high popularity and market position. Its current market value is 22 billion US dollars, ranking 9th.
• Promote market development and innovation: Musk’s call has attracted attention to the meme coin market, attracted project owners and developers to participate, and prompted meme coins to continue to innovate and expand in terms of technology and application scenarios. For example, FLOKI has developed from a simple meme coin to NFT, Defi, blockchain games and other projects.
• Formation of a specific market culture: Strengthening the speculative culture and "meme effect" of the meme coin market, investors pay more attention to celebrity effects and market sentiment, affecting investment decisions and market trends, and increasing market volatility and uncertainty.
