Memecoins have been the talk of the town in recent months. Since 2023, many new memecoins have managed to capture the attention of the crypto community and investors. PEPE, WIF, MOG, and POPCAT catalyzed a new generation of memecoins. In fact, they often outperformed projects like Arbitrum. This led to the concept of the memecoin supercycle. What is a memecoin supercycle? How can we capitalize on it if it happens? We’ll cover it all in detail.
Article Summary
- Popularity of Memecoins: Memecoins such as PEPE, WIF, MOG, and POPCAT are hot topics in the crypto community because they often perform better than other altcoins.
- Memecoin Supercycle Concept: The memecoin supercycle is a theory about massive price increases of memecoin over a long period, fueled by the attention of retail investors.
- Driving Factors: The main factors driving the memecoin supercycle include the rise in BTC price to new highs and an altseason that increases retail investor interest.
- Investment Strategy: To capitalize on the potential of the memecoin supercycle, you can choose memecoins with strong communities and consider investing in its ecosystems such as SOL and ETH.
What is the Memecoin Supercycle?
The Memecoin Supercycle is a concept or theory about how memecoin will experience massive price increases over a long period. The concept was originally mentioned by several influencers who believed in the high potential of memecoins for a 2024-2025 bull market.
The concept of the memecoin supercycle itself was born due to many new memecoins outperforming other altcoins. PEPE, WIF, MOG, and POPCAT are examples of memecoins that managed to break the $500 million and even $1 billion market cap within months. Many investors earned high returns from investing in memecoins.
One of the reasons why memecoins have become so popular is investor aversion to their huge market capitalization/FDV ratio. Tokens with this model have huge selling pressure from investors and teams selling their tokens. The value of the token will continue to be diluted, with the price stagnating/declining despite its market capitalization increasing.
The basic premise of why memecoin will perform best compared to other altcoin sectors is the potential for attention captured. With a simple and funny concept, memecoins could attract more retail investors than projects with complex technological jargon. We can argue that attention is the most important metric to see the potential of an asset in the crypto industry.
The volume of an asset is one of the metrics we can measure to roughly gauge attention. As in the image above, memecoin has a fairly high volume. In comparison, AR and PENDLE have lower volumes than WIF.
Factors Driving the Memecoin Supercycle
- Crypto Industry Catalysts: In Q3 and Q4 2024, crypto will have many catalysts such as interest rate cuts and the US presidential election. A rate cut will increase global liquidity levels while a new pro-crypto US President will boost the crypto ecosystem in the US. Both are potential bellwethers for BTC and other crypto assets.
- BTC reaches a new ATH: A supercycle for the memecoin category can only happen when BTC has passed its ATH ($73,747). Altcoins will usually experience an exponential rise when BTC is undergoing a parabolic movement. This is what happened in 2021.
- Altseason: Altseason is the biggest catalyst for the altcoin sector. In the previous altseason, the altcoin sector grew from $30 billion to $1 trillion. Retail investors also usually return during this period. As was the case with DOGE in 2021, memecoin is likely to become a destination for retail investors again.
- Impromptu catalysts: Unlike regular altcoins with catalysts such as new partnerships or roadmap announcements, memecoin catalysts are usually very simple. Ethereum founder buys PEPE? Elon Musk changed his profile picture to PEPE? Pump! The catalyst for a spike usually comes from a buy announcement from a famous figure.
Franklin Templeton and VanEck are two major investment firms that believe in the power of memecoin in the crypto industry. VanEck even created a memecoin index.
How to Capitalize on the Memecoin Supercycle?
If you believe in the concept of the memecoin supercycle, you should take advantage of it at a time when the BTC parabolic movement has not yet occurred. The least risky strategy is to choose a memecoin with an already strong community and a large owner base. Currently, many new memecoins such as PEPE and WIF are undergoing corrections.
In addition, you can also take advantage of the memecoin supercycle by buying assets that make up the memecoin ecosystem. Currently, the two biggest memecoin ecosystems are SOL and ETH. Both are mandatory assets if you believe that memecoin will become the best altcoin sector when BTC experiences intense price appreciation.
In the Q3 2024 market analysis article, many catalysts in the next few months could have a positive impact on the crypto industry as a whole. As we know, memecoins usually perform best when the market stabilizes.
Memecoin Investing and Trading
Ansem, one of Solana’s influencers and an avid supporter of the potential of memecoins, explained that he has a strategy of owning memecoins based on market capitalization size. He selects memecoins from the large-cap ($1 billion and above), mid-cap ($250-$900 million), and low-cap ($50-$250 million) categories. Ansem’s strategy is ideal for you with enough capital to allocate to memecoins and are willing to take risks.
If you are confused, you can also read the articles on how to trade and invest in memecoins or how to choose anti-rugpull memecoins.
Conclusion
Memecoins have become a popular phenomenon among the crypto community. Some new memecoins are showing impressive price performance compared to other altcoins. The concept of a memecoin supercycle emerged because memecoins often experience significant price increases, fueled by heightened attention from retail investors.
Memecoins have great potential for a bull market in 2024-2025, driven by factors such as rising BTC prices, altseason, and simple catalysts from famous personalities. You can capitalize on the potential of the memecoin supercycle by choosing memecoins that have strong communities and considering their ecosystem altcoins such as SOL and ETH.
Buying and Investing Memecoins on the Pintu App
You can purchase a wide range of memecoins such as PEPE, WIF, and POPCAT safely and easily at Pintu. Pintu diligently evaluates all its crypto assets to ensure the safety of our users.
Pintu is also compatible with popular wallets such as Metamask to facilitate your transactions. Download Pintu app on Play Store and App Store!
Aside from buying and trading crypto assets, you can expand your knowledge about cryptocurrencies through various Pintu Academy articles. Updated weekly, all Pintu Academy articles are made for knowledge and educational purposes, not as financial advice.
References
- @trading_vapor, “The alt-season and memecoin supercycle case while yall doomers are losing your mind (warning: long af) Since I have a few minutes”, x, accessed on 25 July 2024.
- @FTI_DA, “The Value Between Meme Coins and Their Native Networks https://t.co/LYjQ5HvXHp“, X, accessed on 26 July 2024.
- @kelxyz_“Memecoin Supercycle The L1 trade was the best in crypto history. The memecoin trade – popularized by @blknoiz06, @0xLawliette, @intuitio_, X, accessed on 26 July 2024.
- @layerggofficial, “Some thoughts on the Memecoin cycle🧵“, X, accessed on 26 July 2024.
- Charlie, “Memecoin TVL Pump Thesis“, Substack, accessed on 26 July 2024.