Meme Coin Market Eyes Revival: Analysts Predict an Upcoming Supercycle
beincrypto.com 20 August 2024 10:58, UTC Despite recent challenges, including declining trading volumes and criticism of platforms like Pump.fun, analysts believe meme coins may be on the brink of an unprecedented upturn.
They suggest an impending meme coin supercycle driven by unique market trends and investor sentiments.
Meme Coin Market Short-Term Recovery
The meme coin market recently showed signs of revival, with an overall market capitalization increase of 6% in just 24 hours, now totaling approximately $40.85 billion.
Leading this uptick, Popcat (POPCAT) saw its value jump by nearly 30%. Similarly, Dogwifhat (WIF) and Brett (BRETT) followed with gains of 14.5% and 14.3%, respectively, according to CoinGecko.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
This resurgence has reignited discussions around a potential meme coin supercycle. A crypto analyst, Intuitio, shared insights on X (formerly Twitter), indicating that meme coins typically surge after major altcoins achieve substantial gains. Consequently, he suggests that meme coins thrive when investors feel economically strong.
“Market values betting on the last cycle’s fastest horse when feeling rich meme coins will outperform all other coins. So hold on to your blue-chip meme coins because the most vicious meme pumps will only come after majors pumped past their all-time highs and made people rich,” Intuitio explained.
Moreover, analyst Murad emphasized the connection between increased monetary printing and the likelihood of a meme coin supercycle. He advised focusing on three meme coin themes:
- Real memes that are popular outside of crypto Twitter,
- Cults, culture, and movements,
- Cat-themed meme coins
However, not all are optimistic. Crypto investor Farokh cautioned against high expectations, comparing the meme coin supercycle thesis to the failed non-fungible supercycle theory from the 2021 bull market.
“I hold a large amount of memes. But just good to tame your expectations about “supercycles”, from a permabull who does not know how to be bearish at all,” Farokh warned.
While there are positive signs, challenges remain, especially with platforms like Pump.fun. Despite its high revenue, Pump.fun has been criticized for delivering minimal benefits to users.
Out of over 1.7 million meme coins launched on the platform, only 15 maintained a market capitalization above $10 million for several weeks—a success rate of just 0.0001%.
Recent policy changes at Pump.fun have also raised concerns. The platform eliminated its coin creation fee, now charging the first buyer instead. Critics argue this could lead to a flood of low-quality tokens, potentially diluting the market further.
