HTX Ventures Latest Research Report | 2024 Meme Sector Analysis: From Viral Spread to Ecological Bridgehead

2024.10.29

HTX Ventures Latest Research Report | 2024 Meme Sector Analysis: From Viral Spread to Ecological Bridgehead

With increased liquidity, direct involvement from official entities, and the addition of VC investments, the meme coin market is expected to continue its surge in the second half of 2024, bringing more professional and transparent meme coin practices.

2024.10.29 - 03:05:31

Meme

Navigating Web3 tides with focused insights

Abstract

This article explores the current state and development characteristics of the Meme sector in 2024 through observation and analysis, covering key aspects such as the popularity trends of Meme coins, platform emergence, dissemination methods, and market strategies. The main points are as follows:

Meme Coin Frenzy and Dissemination Patterns: In 2024, Meme coins have experienced cyclical peaks, particularly at the beginning of the year and during Q2. The spread of Memes resembles infectious disease transmission, rapidly growing through social media and community sharing. This cycle has also exhibited new features.
Rise of Meme Platforms: Memecoin launchpads represent a major innovation this cycle, with platforms like Pump.fun and SunPump simplifying the creation and trading of Meme coins and attracting massive user bases. These platforms differ in user demographics, revenue models, and ecosystem integration.
Liquidity and Market Strategies: Memes have become the "beachhead" for blockchain ecosystems and projects to drive growth—a significant shift this cycle. Meme coins act as pioneers that attract attention and capital, fueling subsequent ecosystem development. Investment strategies in the Meme sector focus on leading coins, trading volume, and market sentiment.
Outlook for the Future: With looser liquidity, direct institutional involvement, and increasing VC investment, the Meme coin market is expected to continue its explosive growth in the second half of 2024, likely evolving toward more professional and transparent gameplay.

New Characteristics of This Meme Cycle

Sustained Heat with Cyclical Peaks

Unlike previous intermittent Meme waves, Meme coin enthusiasm in this cycle has reached unprecedented levels, especially between February and April.

Whether it's the average 6x weekly gains seen across 20 popular coins like PEPE, or tokens such as WIF and BOME setting records for the shortest time to CEX listing, these developments send a clear signal to crypto investors: the Meme craze is back.

The spread of internet memes closely mirrors that of infectious diseases. Like viruses, memes depend on "hosts"—users who share and propagate them—to achieve rapid diffusion. Once a meme enters a popular social network, it can quickly infect large numbers of users, especially when it triggers strong emotional reactions or contains easily imitable elements. This was evident from early-2024’s ordi wave to the Solana Meme frenzy in Q2.

This type of dissemination typically follows an exponential growth pattern: initially reaching only a few individuals but rapidly spreading to vast populations. Additionally, meme propagation is influenced by network nodes—similar to super-spreaders in epidemiology—where users with large followings can dramatically accelerate dissemination. This dynamic closely parallels disease transmission, relying on close interpersonal connections and interactions. As illustrated below:

Meme propagation resembles infectious disease spread, as shown in this SIR model.

Red = Susceptible, Green = Infected, Blue = Recovered.

The Rise of Meme Platforms Is a Defining Feature

Memecoin launchpads are a standout feature of this Meme cycle. Emerging platforms such as Pump.fun and SunPump have gained prominence by streamlining the process of creating and trading Memecoins while achieving seamless integration with major blockchains, thereby attracting massive user adoption. They differ in target audience, daily issuance volume, revenue generation, project success rates, ecosystem integration, marketing, and community engagement.

As the crypto industry evolves, the Memecoin space presents both opportunities and challenges, making innovation critical. The success of Memecoin platforms hinges on delivering products with unique value propositions, combining cultural trends with technological advancement.

Launchpad Comparative Analysis

Image source: Tiger-Research

Target Users

In terms of typical user demographics, the earlier platform Pump.fun primarily targets Western audiences, whereas SunPump, backed by Justin Sun, is more prevalent in Asia. SunPump has also leveraged aggressive marketing campaigns led by Justin Sun and his team on platforms like Twitter, gaining notable traction on TRON.

Platform Revenue & Fees

SunPump launched later but had generated approximately $567K in revenue by the end of August, issuing around 7,500 Memecoins per day. Pump.fun issues roughly 7,000 per day, nearly matching SunPump. Both platforms charge a 1% transaction fee.

Ecosystem Integration

Pump.fun, developed by a third party, debuted on the Solana chain and later integrated with Base around May–June before expanding to Blast. In contrast, SunPump operates primarily on the TRON blockchain, supported by its payment system—which hosts a large number of users transacting in USDT—and its exchange infrastructure.

Other Meme Platforms

Image source: Rootdata, Chain Catcher

Besides Pump.fun and SunPump, there are niche launchpads serving specific sectors—for example, Memehub.ai (an AI-focused launchpad), wonton.fun (dedicated to the TON chain), and Satspumpfun (a launchpad for Bitcoin's ecosystem).

They support different public chains and offer varied functionalities, as shown in the table above.

Case Study: SunPump

SunPump has outperformed most other Meme launchpads.

Justin Sun, founder of TRON, emphasized that although the Meme coin market is still in its early stages, TRON is pursuing a long-term strategy focused on building robust infrastructure and continuously improving user experience to meet diverse needs.

Sun highlighted that SunPump, as TRON’s Meme launchpad, forms one pillar of a three-layer framework alongside TRON’s payment network and DeFi layer.

First, a widely recognized stablecoin payment network: TRON has surpassed Ethereum and Solana in daily revenue, becoming the leading stablecoin payment platform.
Second, a DeFi layer offering stable investment returns.
Third, SunPump itself, which combines mature DeFi technology with high-performance blockchain infrastructure to deliver high-risk, high-reward investment opportunities.

SunPump offers several advantages:

Strong Team: The SunPump team possesses deep insights into the Meme market, enabling them to accurately anticipate investor demand and identify potential user bases, ensuring product quality leadership.
Liquidity Support: The TRON platform has issued over $60 billion in stablecoins and boasts more than 2 million daily active users—far exceeding Solana. This large user base and high transaction volume provide strong liquidity for the Meme market.
Community Backing: SunPump enjoys strong community support, particularly from Asia, giving it a solid foundation of users.

With the continuous rollout of SunPump tokens, TRON’s number of active addresses reached 1.9 million in August, compared to Solana’s 1.09 million, highlighting TRON’s clear advantage in this domain.

Meme Ecosystem and Liquidity

In my view, Memes have stood out notably in this cycle, capturing significant market attention. One defining characteristic is how various market participants have integrated liquidity with the Meme ecosystem, using Memes as catalysts to ignite market enthusiasm, liquidity, and ecosystem growth. This manifests in two primary ways:

Memes are now seen by major blockchains and projects as the “beachhead” for ecosystem development—an important shift in this cycle. From Solana’s founder dressing up as the “Dope Dragon,” to pump.fun, to NOT’s “fascia gun” narrative, all exemplify the “Meme-first” approach. Memes function like hook products in Web2 product suites—gaining initial market traction, accumulating capital, and paving the way for infrastructure products like DeFi and lending protocols to absorb that capital. Attracting funds via Memes before launching utility-driven products has become a strategic path for ecosystem and project teams.
Time lag in adoption provides liquidity momentum. There remains a time gap between mainstream perception and Web3 adoption. Among those who enter the crypto space, many first encounter the wealth-generation stories associated with Meme coins. High volatility means these assets can yield substantial short-term returns. Retail investors may be drawn to these quick-rich opportunities. Moreover, many Meme coins have lower prices compared to Bitcoin, allowing retail participants to buy large quantities with relatively small investments. For budget-conscious investors, this low entry barrier is highly attractive.

Case Studies: Meme Coins as Liquidity Catalysts

As discussed, Memes have been used by various chains, projects, and ecosystems as front-line drivers of liquidity. Notable examples include:

Linea Chain: $Foxy

$Foxy originated from the Linea Foundation and was initiated with participation from MetaMask’s parent company. Though details were scarce early on, the driving force behind it was clearly Linea and its affiliates. Leveraging KOL fundraising and marketing efforts, $Foxy achieved around 40x returns on its first day of exchange listing.

Base Chain: $Degen, $Enjoy, $High

The Base chain has seen countless Meme launches. Among them, $Degen, which surged in popularity in February–March 2024, stands out. Initially a purely community-driven Meme project with 100% Meme attributes, $Degen evolved as its “top-hatted gentleman” identity strengthened. Later, it was granted utility by the official app as a tipping token on the Farcaster social platform, though it retained its core Meme nature—now approximately 80% Meme and 20% utility. Subsequent support from Farcaster and Base ecosystem players further solidified its position. $High, meanwhile, is Zora’s Meme coin.

Other notable cases include:

Manta Network: Announced a Moon Mission Meme Grants program worth $10 million in June 2024.
Avalanche Chain: $COQ, $KIMBO, $TECH, $GEC. Avalanche’s Meme liquidity strategy involved launching multiple Memes in the first half of 2024, backed by the Avalanche Foundation.
Fantom: Launched a “Meme Season” featuring Sonic Memecoin starting in June.
zkSync: Introduced Zeekcoin $MEOW as its Meme mascot.

Distribution of Major Meme Project Types in 2024

Whale Coins

BOME / SLERF / MEW / MANEKI …

I categorize coins with large liquidity pools as whale coins. Their hallmark is massive pools and extremely fast price surges, allowing for large positions with high multipliers. However, they often reach high market caps quickly, making entry difficult for latecomers.

Current Events Coins

GME / BODEN / TREMP / DJT / NCAT …

These Memes tie into trending real-world figures such as Elon Musk, Donald Trump, or Roaring Kitty. Every move by these high-profile individuals sparks corresponding Meme coins on-chain. However, their prices are also highly sensitive to news cycles. For instance, $DJT (Trump Coin) surged due to rumors that Barron Trump was involved but crashed after investigations by prominent CT figures like Zach XBT and GCR exposed internal manipulation. Similarly, $GME spiked following Roaring Kitty’s return post, only to plummet after his live stream failed to deliver meaningful content.

Community Coins

POPCAT / MICHI / SC / NEIRO

In my view, pet-themed community coins offer high reward potential but also carry high failure risk. Their high reward stems from long accumulation periods that allow early investors to acquire cheap tokens. However, due to limited scarcity, many fail to gain lasting traction. While an eye-catching token image is crucial, community culture is even more important.

Additionally, I believe such community-based Memes gradually build retail consensus and drive slow price appreciation under favorable market conditions. But in bearish environments, due to widespread and fragmented holdings, they tend to drop fastest.

Celebrity Coins

MOTHER / RNT / PAJAMES

Celebrity coins have recently surged on the Solana chain. Most celebrities show little interest in long-term management, resulting in “one-hit wonder” projects. However, if a celebrity with significant external influence actively engages, the coin holds immense potential. The most successful example so far is $MOTHER, promoted by rapper Iggy Azalea, who leveraged her millions of fans, actively engaged with CT influencers, and interacted with the community, sustaining momentum over time.

Others

WEN / BONK / WIF …

Beyond the above categories, numerous other trend-driven Meme coins exist. For example, $WEN, launched by the Jupiter team, and $Bonk, rumored to be backed by the Solana Foundation to revitalize the network, achieved high valuations thanks to institutional support. $WIF, the largest and most influential Solana Meme coin, defies easy classification—it began as a community coin but later attracted significant capital, propelling it to become the strongest performer in this bull cycle.

Outlook for the Second Half of the Meme Sector

Altcoin Index at Historical Lows

Beyond the aforementioned factors, the broader macro cycle also supports a Meme resurgence in the second half of 2024. The Altcoin Season index currently stands at 35. This trend further reinforces my belief that the Meme sector will rebound in H2.

Official Participation and Consensus Formation

With the rise of Meme platforms, ecosystem-driven Memes, and dedicated launchers, the Meme sector has not only captured retail interest but also earned direct endorsement and participation from official entities. Between May and August, multiple official teams launched their own platforms and announced native Meme tokens. Compared to the previous cycle, consensus around the Meme sector has significantly strengthened.

The role of Memes as pioneers in ecosystem and project development may evolve in four directions:

First, continued establishment of Meme foundations, incentive programs, or community initiatives, supporting native Meme development through innovation funds;

Second, increased VC involvement—starting in H2 2024, many VCs have announced investments in Meme infrastructure, marking a shift from Meme resistance to Meme embrace;

Third, Meme gameplay will become more professional and transparent;

Fourth, once liquidity is generated, more downstream applications will emerge—new tools such as Meme portfolio managers, meme-creation and distribution platforms, and secondary-content tools based on Memes will see significant development.

Looser Liquidity Favors Meme Growth

Interest rates are expected to decline in the second half of 2024 and the first half of 2025, ushering in a more accommodative macro environment. Due to their small market caps, high visibility, and low entry barriers, Meme coins are well-positioned to benefit from this trend.

About HTX Ventures

This article was written by the research team under HTX Ventures. HTX Ventures is the global investment arm of Huobi HTX, integrating investment, incubation, and research to identify the world’s most talented and innovative teams. As an industry pioneer with over 11 years of blockchain development experience, HTX Ventures excels at identifying cutting-edge technologies and emerging business models. To foster growth within the blockchain ecosystem, we provide comprehensive support to projects, including fundraising assistance, resource access, and strategic guidance.

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Disclaimer

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