Memecoin Supercycle: The Investment Of The Decade

The Investment of the Decade? It’s Not Gold or Tech Stocks—It’s Memecoins. And the Best Part? You’re Early!

Setting the Scene

Let’s step back for a quick look at the evolution of memecoins. They may have started as a laugh, but they’re now serious contenders. The journey began with Dogecoin, which took years to reach the billion-dollar club. Shiba Inu followed, hitting $11 billion in three years. In 2024, however, things have accelerated. WIF shot to $4 billion in four months, and SPX6900 jumped from $10 million to $1 billion in a single month. The pace is quickening, making memecoins a new, increasingly recognised asset class. And we’re only just beginning—buckle up for the next wave!

Big Questions in Memecoin Investing

• What’s driving the surge in memecoin popularity?
• How are they different from other assets?
• Why will memecoins continue outperforming in this cycle?
• Could the entire category reach a trillion-dollar valuation?

Let’s dive deeper.

Why Memecoins?

The memecoin sector has dominated this market cycle, outshining traditional sectors like AI, Gaming, and DeFi. With the right timing, memecoins can deliver life-changing returns. But why is this?

Community and Belonging

In an increasingly connected world, loneliness is on the rise. Studies show half of American adults now experience it regularly, fueling what’s called the “loneliness epidemic.” Enter memecoins: more than just a speculative play, they’re rallying points for those looking to belong. From Dogecoin to WIF, successful memecoins thrive because of the communities they cultivate, welcoming anyone who’s got a few dollars to spare. In a world where belonging often has a price, memecoins offer that sense of identity and belonging for a minimal cost, uniting people around shared beliefs and humour.

The Thrill Factor: Crypto and the Global Gambling Boom

It’s no secret that gambling is a massive industry, with half of U.S. adults participating and casino revenues hitting over $160 billion annually. The rise of online and crypto-based gambling only adds fuel to this fire, with billions pouring in each year. Memecoins tap into this same excitement, but with better odds and the potential for huge rewards. As the demand for thrill-based investing grows, so too will memecoin investments.

Tapping into Digital Culture

Social media has a powerful grip, especially on Gen Z. Reports say that a third of this generation in the U.S. spends a substantial portion of their life online, creating a “sticky” internet culture. Memecoins and popular characters have the potential to become cultural landmarks, resonating beyond the crypto world. The more people engage with online culture, the stronger memecoins will become, giving them a solid footing in the ever-growing digital landscape.

Memecoins Outperforming Where NFTs Fell Short

The last cycle brought NFTs to fame, but they’ve since lost momentum. NFTs became exclusive and expensive, limiting the average person’s participation. Memecoins, on the other hand, are accessible, often available for a few pounds, allowing millions to rally around them. Additionally, the complex tech behind NFTs kept many on the sidelines. In contrast, memecoins offer a straightforward appeal that’s easy to understand—making them a universal movement in crypto.

A Response to Overvalued Altcoins

Another driving factor behind memecoins is the growing discontent with traditional altcoins. Many new altcoins launch with inflated valuations, with insiders profiting before the wider market has a chance. Memecoins are a rebellion against these practices, offering fairer opportunities and simplicity. By supporting culturally significant tokens over complex altcoins, the retail community reclaims some control in a market often dominated by insiders.

A Perfect Storm for Memecoin Success

Timing in risk assets is key, and 2024 holds promise. We’re in an election year with a Bitcoin halving on the horizon—two events historically associated with crypto surges. Meanwhile, memecoins are drawing increased interest from venture capitalists, signalling they’re ready for the mainstream. Crypto’s under-the-radar presence hints at massive growth potential, with a likely influx of new investors once Bitcoin breaks past $70k, directing fresh interest toward memecoins.

The Road to a Trillion-Dollar Memecoin Market Cap

The idea of a trillion-dollar valuation for memecoins may sound ambitious, but it’s not without precedent. Altcoins like XRP and ADA once reached staggering valuations based solely on their communities. We predict this memecoin cycle could bring even stronger community-driven returns, especially as global money supply expands and crypto ETFs make digital assets more accessible.

So, Where Should You Look?

Identifying the winners is crucial at this stage. Our top picks? DogWifHat (WIF), SPX6900 (SPX), POPCAT and NPCS. These leaders in the memecoin sector have established community loyalty and shown resilience in market fluctuations. Each holds the potential to carve out a unique space as the trillion-dollar memecoin era takes shape.

The Big Picture

What started as a novelty is evolving into a cultural force. Memecoins occupy a growing space in the crypto world, driven by a need for belonging, digital culture’s influence, and a distaste for exclusivity. As the stars align for a market surge, memecoins are positioned to take centre stage, and their potential has never been clearer.

The question isn’t if memecoins will hit a trillion-dollar valuation—it’s when. The upside is undeniable.

CB, Out!