Memecoins started as a joke but have grown into an important part of the cryptocurrency market. A report by DWF Labs says these coins represent a big shift in how value is created and shared in the digital world.
“What began as a satirical commentary on cryptocurrency with Dogecoin has evolved into a sophisticated market vertical that attracts significant capital flows and institutional attention”, DWF Labs explained.
These coins bring together social trends, new technology, and market behaviour, showing that value can come from community and creativity rather than traditional financial ideas.
This appeal is particularly strong among younger investors who like building communities and finding unique ways to create wealth.
The memecoin market’s growth in 2024 highlights this trend. CoinMarketCap data shows the market’s value jumped 500%, going from $20 billion in January to $120 billion in early December.
How blockchain helped them thrive?
DWF Labs also explained how blockchain technology made it easier to create and trade digital assets. Before blockchain, companies had to meet strict requirements like showing financial growth and maintaining detailed records to access public markets.
Blockchain has changed that by cutting down costs and time, giving more people access to capital markets.
“The evolution from traditional capital markets to crypto-enabled value creation represents a fundamental transformation in how ideas can be funded and scaled”, the report noted.
This has helped meme-based projects succeed by focusing on community support rather than traditional financial measures.
Popular tokens like Dogecoin ($DOGE) and Shiba Inu ($SHIB) did well in 2024, thanks to their loyal communities. $DOGE stayed strong with support from figures like Elon Musk.
Meanwhile, $SHIB launched Shibarium, a new blockchain that gave it real-world use and attracted more investors. Newcomers like $PEPE and Dogwifhat ($WIF) also grabbed attention with fresh and fun ideas.
What’s next for memecoins?
Looking ahead to 2025, DWF Labs believes animal-themed tokens will stay popular. Creators will need to come up with fresh ideas to keep these tokens relevant as crypto culture evolves.
The managing partner at DWF Labs, Andrei Grachev, said, “Thematic memecoins centred around trending topics, persons, political events or untapped stories of internet culture” could also become big.
Artificial intelligence (AI) might play a role as well. Grachev mentioned “agentic memecoins”, which combine memes with AI technology, as a trend to watch. These coins could attract attention by blending fun with cutting-edge tech.
However, there are risks. Haseeb Qureshi from Dragonfly Capital warned that AI-based tokens can be manipulated. “Current agents can easily be manipulated into saying crazy things that damage their brands”, he said.
Despite these challenges, AI-related tokens and chatbots are gaining popularity. In the past 24 hours, trading volumes for AI tokens rose by 7.95%, while memecoin trading dropped by 21.5%, according to CoinMarketCap.
Qureshi predicts the AI craze will peak in 2025 but may fade by 2026 as people lose interest. “Crypto takes a while to get bored of the shiny thing. Sentiment will reverse”, he said.
Memecoins have shown that value can come from more than just numbers and financial data.
By focusing on community and creativity, they’ve become a unique part of the crypto world. While new trends will shape the market, the impact of memecoins is here to stay.
