1. Market Sentiment and Capital Rotation
Cryptocurrency market risk appetite rebounds
Bitcoin broke through $73,500 on March 25, and Ethereum stabilized at $2,080, boosting market sentiment. Funds are shifting from mainstream coins to higher-risk assets, with Meme coins becoming the focus due to their high volatility. Taking Chill Guy on the Solana chain as an example, its market capitalization skyrocketed to $455 million within 4 days, with an increase of over 2000%.
2. Community Driven and Celebrity Effect
Viral Spread and Community Consensus
Meme coins rely on platforms like X and TikTok for viral growth. For instance, Chill Guy accumulated over 10 million views on the TikTok tag ChillVibes, attracting 70,000 holders. The Reddit community r/MemeEconomy generates over 2,000 original posts daily, with 15% converting into on-chain assets.
Short-term Catalysts from Celebrity Statements
Trump has repeatedly hinted at supporting the 'official Meme coin', with related tokens experiencing a monthly increase of 3000%. A tweet from Salvadoran President Bukele caused Chill Guy's price to rise 65% within 90 minutes.
3. Low Barriers and Speculative Mechanisms
Retail-led Rapid Issuance
Among the new Meme coins issued in 2024, 75% were created through platforms like Pump.fun, with costs below $30, averaging over 500 new tokens daily. High volatility and liquidity traps
Meme coins have an average turnover rate of 77%, far exceeding Bitcoin's 1.8%. Prices plummeted by 99.9% after liquidity providers withdrew their pools.
Conclusion
The explosion of Meme coins is driven by social media virality, low entry thresholds, prioritizing projects with ecological expansion or compliant interfaces, and setting a 15% stop-loss line to guard against extreme volatility.
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