Why did memecoins become so popular?
I’ve been observing the “meme fever” phenomenon for some time, trying to understand its significance. A year ago, I experimented with it, buying Popcat at a $30M FDV, which later soared to $1.6B. Despite exiting early with a minor loss, the experience didn’t upset me—it was a game.
In recent months, however, this “meme fever” has evolved to an entirely new level.
As we know, the world operates in cycles, and Bitcoin is a prime example of this cyclicality. Innovations and trends emerge, but only those that hold value. It aligns perfectly with the principles of the Gartner Curve, where inflated expectations eventually give way to sustainable adoption for truly valuable technologies.
Drawing an analogy, I’ve concluded that memecoins represent a broader trend toward simplification.
When new technology emerges, it builds on prior innovations and achieves breakthroughs through small additions. Over time, its limitations lead to more complex solutions targeting specific weaknesses, eventually resulting in supercomplexity. The human brain, however, has limits—an overload of details drives the desire for simplicity.
This cyclical process repeats:
Simple solution → Complication → Supercomplexity → Overload → Return to simplicity.
This cycle repeats itself across innovations and generations—it’s simply how the world operates. Let’s explore this idea using the example of memecoins.
In recent years, we’ve witnessed a technological overloading: DeFi, Layer 2, LRT, LST, ZK proofs, data availability, co-processing, modularity, parallelization, altVMs, interoperability, DePIN, DeSci, and more.
With so many terms, technologies, and companies, it has become increasingly difficult for the average person to keep up. The process requires:
1. Evaluating the trend/sector.
2. Understanding the underlying technologies.
3. Differentiating between projects in the sector.
4. Finally, identifying the project for investment.
This level of complexity is overwhelming, leaving us with two options: specialization or simplification.
Specialization works for professionals in financial markets—fund managers, analysts, and industry experts. However, for mass adoption, simplification is the only viable path.
Memecoins simplify the dense web of technological advancements made in the last five years. They offer a straightforward, accessible entry point.
The alternative paths to simplification—buying Bitcoin or Ethereum—are less attractive for those seeking high returns. These assets, while proven, have evolved into TradFi-like investments with limited upside.
Memecoins look as the ideal option.
But even within the memecoin space, complexity is creeping in:
1. Early Days: Launching a token required technical expertise and a Twitter presence.
2. Platforms like
Pump.fun: These tools democratized token creation, leading to an explosion of new tokens.
3. Meta AI-Memecoins: Projects like GOAT, ai16z, and Zerebro introduced AI into the memecoin narrative, adding a new layer of complexity.
4. Community Cults: Memes are no longer just pictures or events; they represent communities built around shared beliefs and principles.
While memecoins have grown more intricate, they remain far simpler than navigating the labyrinth of blockchain technologies or corporate trends.
Currently, the space is led by a few key voices, such as
@MustStopMurad (and previously Gotbit). Most others are still observing, testing, and cautiously engaging with the trend. This hesitance indicates significant room for growth within the memecoin sector.
Want more insights on memecoins?
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