Key Figures and Discoveries
- Over the 11 months of 2024, the memecoin sector noticed a 330% improve in market cap and a 979% surge in buying and selling quantity, outpacing Bitcoin by 2 and 9 instances, respectively.
- Memecoins’ share within the altcoin market dimension and quantity surged by over 182% and 350%, respectively.
- AI and cat-themed memecoins emerged because the fastest-growing classes in market dimension.
- Most political memecoins misplaced 80% of their buying and selling quantity following the U.S. elections.
- TON grew to become the fastest-growing community for memecoins, with buying and selling quantity hovering 750-fold during the last six months.
- In 2024, a ten% transfer in Bitcoin’s value usually triggered a 28.9% common volatility amongst high memecoins.
Introduction
When reviewing the record of high gainers and losers in 2024, memecoins are more likely to dominate each classes. This is because of their staggering issuance: over 60,000 memecoins are created each day, with nearly half launched on Pump.enjoyable. This surge has made complete networks more and more reliant on memecoins; on Solana, for example, they account for practically 80% of DEX quantity. The enlargement reveals no indicators of slowing, as networks like Tron and Sui have just lately joined the record of main memecoin “benefactors.”
The attraction is easy: frequently emerged stories of wallets turning a couple of hundred {dollars} into thousands and thousands with investments in some “LOL” token sound extra compelling for individuals who won’t wish to stick within the area for some time, or search for fast income. As memecoins dominate in crypto-related search curiosity, they’re turning into the brand new hub for retail merchants, even surpassing Bitcoin in consideration.
There’s no query that memecoins have been among the many most influential crypto narratives this yr. However simply how impactful have they change into? To seek out out, we examined the 2024 efficiency of the memecoins sector to evaluate their rising market share and conduct throughout high-volatility occasions.
Methodology
The info used for this analysis consists of publicly accessible data from CoinMarketCap, CoinGecko, CoinGlass, and Artemis. The efficiency of sure digital property has been adjusted utilizing information supplied by CEX.IO Spot Buying and selling, a buying and selling platform, which presents deep liquidity throughout 300+ pairs because of liquidity aggregated from top-tier crypto exchanges beneath one roof.
The commentary interval for this research was targeted on 11 full months of 2024 to point out the month-to-month growth of the memecoin sector. As for memecoins and classes established after the March 2024 frenzy, the commentary interval has primarily been June-November, or the final 6 months.
Half 1: The Weight of Memecoins within the Crypto Market
Doubled Share in Market Cap
The memecoin sector registered a 330% improve in its mixed market cap in 11 months of 2024. This improve is 3 instances bigger than Bitcoin’s and 9 instances bigger than Ethereum’s over the identical interval. In consequence, the memecoin sector considerably boosted its share throughout the crypto market:
- In whole crypto market cap — +142%, from 1.3% to three.16%.
- In whole crypto market cap excluding Bitcoin (Total2) — +182%, from 2.71% to 7.62%.
- In whole crypto market cap excluding Bitcoin and Ether (Total3) — +167%, from 4.2% to 11.21%.
Most of this progress occurred following the memecoin frenzy in March, which grew to become a turning level by way of memecoin issuance. As an example, in February, the each day variety of memecoins deployed on Pump.enjoyable was restricted to some dozen, however this determine skyrocketed to hundreds beginning March. This frenzy was pushed by the broader crypto rally and the rising feasibility of making new memecoins. The fee-efficiency of building markets on decentralized exchanges (DEXs) on Solana and Base networks additional amplified the surge.
Tenfold Enhance in Buying and selling Quantity
Memecoins skilled much more pronounced progress in buying and selling quantity, which rose by 979% on common during the last 11 months, additional elevating their place within the broader crypto market:
- A 362% improve within the common crypto buying and selling quantity, now representing round 5.27%.
- A 350% progress in altcoin (Total2) quantity, reaching 6.52%.
- A 367% surge in Total3 (excluding Bitcoin and Ether) quantity, hitting 7.57% in November.
In March and November, memecoin quantity virtually doubled, whereas most different sectors lagged behind. In June, whereas most digital property skilled a steep decline in quantity, memecoins retained important curiosity, briefly securing 5.71% of whole crypto buying and selling quantity.
Memecoins’ Quantity/MCap Outpaces A lot of the Market
In 2024, the Quantity/MCap ratio noticed substantial progress throughout most cryptocurrencies. Memecoins outperformed the altcoin market (Total2), with their Quantity/MCap ratio leaping 150% to succeed in a mean of 11.55%. A excessive Quantity/MCap ratio usually alerts better buying and selling exercise relative to market dimension, nevertheless it additionally tends to extend susceptibility to sudden value swings.
Memecoins’ Quantity/MCap ratio momentum primarily ramped up after the March frenzy. At its peak, the Quantity/MCap ratio throughout the memecoin sector soared previous 50%, showcasing speedy hypothesis. As well as, in 2024, it grew to become extra widespread for memecoins’ buying and selling quantity to briefly exceed their market cap, a uncommon incidence amongst property with market caps over $100 million (excluding main stablecoins).
Half 2: Elevated Memecoin Variety within the Crypto Market
Rising Dominance Amongst Main Digital Belongings
In 2021, memecoin quantity and market cap have been dominated by simply two property: Dogecoin and Shiba Inu. Against this, 2024 has seen a surge in top-ranking memecoins, with the common quantity within the high 100 tripling from 3 in January to 10 in November. Moreover, there was a constant rise every month, reflecting the resilience of curiosity within the memecoin sector and its increasing affect, regardless of common volatility.
Broader memecoin zoo
One main driver that boosted memecoins’ affect in 2024 has been the expansion of recent communities. This led to the formation of various memecoin classes, which haven’t typically been a factor earlier than March 2024. It is because the overwhelming majority of the most important memecoins have been dog-themed, representing round 85% of the sector’s market cap in early March. Nevertheless, their share fell to 72% by November, with AI-related and cat-themed memecoins dominating available in the market cap progress over the previous six months. By December, their share in whole memecoin market cap elevated to three.6% and three.8%, respectively.
By way of buying and selling quantity, dog-themed memecoins emerged because the fastest-growing class, with a 226% improve over the previous six months. Nevertheless, earlier than the U.S. elections in November, political memecoins have been taking the lead in buying and selling quantity progress. Following the occasion, most political memecoins noticed a greater than 80% drop in buying and selling quantity, dropping market attraction.
Notice: The efficiency from June 1, 2024, to December 1, 2024.
Transferring outdoors Ethereum
In earlier cycles, top-ranking memecoins primarily consisted of Dogecoin and a wide range of Ethereum-based tokens. Nevertheless, the 2024 memecoin growth prolonged to different networks, with Solana being the most important winner, at present accounting for 15% of market cap and 30% of buying and selling quantity throughout the sector.
Over the past six months, the most important progress in market cap has been noticed in TON-based memecoins, with buying and selling quantity rising over 750 instances, albeit nonetheless accounting for a minor share (1% and a pair of% in whole memecoin market cap and quantity, respectively).
Notice: The efficiency from June 1, 2024, to December 1, 2024.
New Memecoins Lead in Futures Open Curiosity
At the beginning of 2024, most memecoin-related futures open curiosity was centered on Dogecoin, which held round 65% of the sector’s share. Nevertheless, open curiosity later diversified to incorporate newer memecoins, with WIF attaining a staggering 15,000% improve over 11 full months of 2024.
Following the March memecoin rally, market consideration in futures shifted towards newly launched property. Over the past six months, POPCAT, BRETT, and MEW have proven triple-digit progress in open curiosity, rising as main memecoins within the futures market. This progress displays heightened investor hypothesis and volatility expectations, significantly amongst newer memecoins.
Notice: The efficiency from June 1, 2024, to December 1, 2024.
In consequence, the memecoin sector was one of many fastest-growing by way of crypto hypothesis, with the highest 10 memecoins now accounting for greater than 4% of whole futures open curiosity.
By November, Dogecoin maintained its place as a number one memecoin by way of open curiosity within the futures market, retaining its 65% share. Nevertheless, that is primarily as a result of creation of the Department of Government Efficiency (DOGE) following U.S. elections, which reestablished curiosity within the Dogecoin market. Earlier than the information concerning the launch of this establishment, Dogecoin’s share in memecoin open curiosity was round 51%.
Notice: The share distribution as of December 1, 2024.
Half 3: Exploring Memecoin Amplifier Throughout Market Volatility
Given memecoins’ rising share within the crypto market, we determined to investigate volatility occasions to gauge the sector’s sensitivity to market swings. We examined weeks with ±10% value modifications for Bitcoin and Ether, utilizing them as triggers for general market motion. This evaluation targeted on the efficiency of the highest six memecoins, which collectively accounted for over half of the sector’s market cap and buying and selling quantity in 2024. These property embrace DOGE, SHIB, PEPE, FLOKI, WIF, and BONK.
Key Insights: Bitcoin Volatility
Bitcoin noticed 8 weeks of double-digit value modifications in 2024, yielding the next insights:
- Memecoins have outperformed Bitcoin throughout value surges, however suffered bigger drops in downturns.
- DOGE and BONK have proven the strongest correlation with Bitcoin, with a mean sector correlation of 0.7.
- The typical “memecoin amplifier” impact was 2.89x (or 2.09x excluding a surge in early March). Because of this for a ten% Bitcoin value change, memecoins exhibited common volatility of 28.9% and 20.9%, respectively.
Key Insights: Ether Volatility
Ether’s 2024 volatility, with 13 weeks of double-digit value modifications to date, advised the next:
- Memecoins had a better common correlation with Bitcoin (0.74) throughout Ether’s fluctuations.
- Memecoins underperformed Ether in additional than half of the noticed instances, suggesting Ether’s value modifications have a restricted impression on memecoin efficiency.
- The typical memecoin amplifier impact was 2.65x (1.35x excluding the Week 9 anomaly).
These value swings revealed that memecoins thrive extra in Bitcoin-driven rallies than Ether ones. Moreover, common memecoin amplifiers have been bigger throughout BTC value surges than drops, even excluding the anomaly surge in early March.
As a consequence of comparatively excessive correlation and sensitivity to Bitcoin strikes, the most important memecoins may doubtlessly act as high-risk, high-reward proxy bets on Bitcoin. It is because Bitcoin serves as the first driver of general market sentiment, whereas high memecoins may very well be seen as bets on this sentiment. Not like Ethereum, which is closely tied to utility-driven initiatives, Bitcoin’s simplicity as a retailer of worth aligns extra intently with the memecoin market’s speculative, hype-driven nature.
In consequence, memecoins can amplify Bitcoin buying and selling by performing as a gateway for retail buyers who’re in search of larger/sooner returns throughout Bitcoin rallies. This inflow can feed again into Bitcoin as merchants rotate income or losses between memecoins and Bitcoin, intensifying each buying and selling quantity and volatility.
Memecoin Efficiency Throughout Excessive-Influence Occasions
Memecoins have additionally been extra delicate to high-impact occasions, typically reacting with amplified strikes, surpassing each BTC and ETH in both route. Inside per week, memecoin response usually accelerates if there’s a broader crypto market rally, or smooths out relying on the efficiency of high digital property. For instance, through the Yen carry commerce unwinding in early August, high memecoins practically offset losses as Bitcoin shortly rebounded.
Desk: Digital asset value efficiency amid main 2024 occasions. Notice: “Memes” efficiency consists of the common value change of the highest 6 memecoins over 1-day and 7-day durations.
Conclusion
Memecoins are now not a joke — their market share in crypto has surged by 2-4 instances over the primary 10 months of 2024. In November, the affect of memecoins expanded even additional, experiencing a brand new hype wave. Furthermore, this can be just the start. Bitcoin’s dominance has been predominantly on the rise all through this yr, with only three brief altcoin seasons so far. In earlier cycles, post-halving rallies have coincided with declining Bitcoin dominance and prolonged altcoin seasons. Consequently, the following 6-12 months may see memecoins flourish much more, doubtlessly establishing a stable sentiment indicator for your complete business.
The net content material supplied by CEX.IO is for academic functions solely. The data and instruments supplied neither are, nor must be construed as, a proposal, or a solicitation of a proposal, or a suggestion, to purchase, promote or maintain any digital asset or to open a specific account or have interaction in any particular funding technique. Digital asset markets are extremely risky and might result in lack of funds.
The provision of the merchandise, options, and companies on the CEX.IO platform is topic to jurisdictional limitations. To grasp what services and products can be found in your area, please see our list of supported countries and territories. This web page consists of extra hyperlinks to details about particular person merchandise, and their accessibility.
Key Figures and Discoveries
- Over the 11 months of 2024, the memecoin sector noticed a 330% improve in market cap and a 979% surge in buying and selling quantity, outpacing Bitcoin by 2 and 9 instances, respectively.
- Memecoins’ share within the altcoin market dimension and quantity surged by over 182% and 350%, respectively.
- AI and cat-themed memecoins emerged because the fastest-growing classes in market dimension.
- Most political memecoins misplaced 80% of their buying and selling quantity following the U.S. elections.
- TON grew to become the fastest-growing community for memecoins, with buying and selling quantity hovering 750-fold during the last six months.
- In 2024, a ten% transfer in Bitcoin’s value usually triggered a 28.9% common volatility amongst high memecoins.
Introduction
When reviewing the record of high gainers and losers in 2024, memecoins are more likely to dominate each classes. This is because of their staggering issuance: over 60,000 memecoins are created each day, with nearly half launched on Pump.enjoyable. This surge has made complete networks more and more reliant on memecoins; on Solana, for example, they account for practically 80% of DEX quantity. The enlargement reveals no indicators of slowing, as networks like Tron and Sui have just lately joined the record of main memecoin “benefactors.”
The attraction is easy: frequently emerged stories of wallets turning a couple of hundred {dollars} into thousands and thousands with investments in some “LOL” token sound extra compelling for individuals who won’t wish to stick within the area for some time, or search for fast income. As memecoins dominate in crypto-related search curiosity, they’re turning into the brand new hub for retail merchants, even surpassing Bitcoin in consideration.
There’s no query that memecoins have been among the many most influential crypto narratives this yr. However simply how impactful have they change into? To seek out out, we examined the 2024 efficiency of the memecoins sector to evaluate their rising market share and conduct throughout high-volatility occasions.
Methodology
The info used for this analysis consists of publicly accessible data from CoinMarketCap, CoinGecko, CoinGlass, and Artemis. The efficiency of sure digital property has been adjusted utilizing information supplied by CEX.IO Spot Buying and selling, a buying and selling platform, which presents deep liquidity throughout 300+ pairs because of liquidity aggregated from top-tier crypto exchanges beneath one roof.
The commentary interval for this research was targeted on 11 full months of 2024 to point out the month-to-month growth of the memecoin sector. As for memecoins and classes established after the March 2024 frenzy, the commentary interval has primarily been June-November, or the final 6 months.
Half 1: The Weight of Memecoins within the Crypto Market
Doubled Share in Market Cap
The memecoin sector registered a 330% improve in its mixed market cap in 11 months of 2024. This improve is 3 instances bigger than Bitcoin’s and 9 instances bigger than Ethereum’s over the identical interval. In consequence, the memecoin sector considerably boosted its share throughout the crypto market:
- In whole crypto market cap — +142%, from 1.3% to three.16%.
- In whole crypto market cap excluding Bitcoin (Total2) — +182%, from 2.71% to 7.62%.
- In whole crypto market cap excluding Bitcoin and Ether (Total3) — +167%, from 4.2% to 11.21%.
Most of this progress occurred following the memecoin frenzy in March, which grew to become a turning level by way of memecoin issuance. As an example, in February, the each day variety of memecoins deployed on Pump.enjoyable was restricted to some dozen, however this determine skyrocketed to hundreds beginning March. This frenzy was pushed by the broader crypto rally and the rising feasibility of making new memecoins. The fee-efficiency of building markets on decentralized exchanges (DEXs) on Solana and Base networks additional amplified the surge.
Tenfold Enhance in Buying and selling Quantity
Memecoins skilled much more pronounced progress in buying and selling quantity, which rose by 979% on common during the last 11 months, additional elevating their place within the broader crypto market:
- A 362% improve within the common crypto buying and selling quantity, now representing round 5.27%.
- A 350% progress in altcoin (Total2) quantity, reaching 6.52%.
- A 367% surge in Total3 (excluding Bitcoin and Ether) quantity, hitting 7.57% in November.
In March and November, memecoin quantity virtually doubled, whereas most different sectors lagged behind. In June, whereas most digital property skilled a steep decline in quantity, memecoins retained important curiosity, briefly securing 5.71% of whole crypto buying and selling quantity.
Memecoins’ Quantity/MCap Outpaces A lot of the Market
In 2024, the Quantity/MCap ratio noticed substantial progress throughout most cryptocurrencies. Memecoins outperformed the altcoin market (Total2), with their Quantity/MCap ratio leaping 150% to succeed in a mean of 11.55%. A excessive Quantity/MCap ratio usually alerts better buying and selling exercise relative to market dimension, nevertheless it additionally tends to extend susceptibility to sudden value swings.
Memecoins’ Quantity/MCap ratio momentum primarily ramped up after the March frenzy. At its peak, the Quantity/MCap ratio throughout the memecoin sector soared previous 50%, showcasing speedy hypothesis. As well as, in 2024, it grew to become extra widespread for memecoins’ buying and selling quantity to briefly exceed their market cap, a uncommon incidence amongst property with market caps over $100 million (excluding main stablecoins).
Half 2: Elevated Memecoin Variety within the Crypto Market
Rising Dominance Amongst Main Digital Belongings
In 2021, memecoin quantity and market cap have been dominated by simply two property: Dogecoin and Shiba Inu. Against this, 2024 has seen a surge in top-ranking memecoins, with the common quantity within the high 100 tripling from 3 in January to 10 in November. Moreover, there was a constant rise every month, reflecting the resilience of curiosity within the memecoin sector and its increasing affect, regardless of common volatility.
Broader memecoin zoo
One main driver that boosted memecoins’ affect in 2024 has been the expansion of recent communities. This led to the formation of various memecoin classes, which haven’t typically been a factor earlier than March 2024. It is because the overwhelming majority of the most important memecoins have been dog-themed, representing round 85% of the sector’s market cap in early March. Nevertheless, their share fell to 72% by November, with AI-related and cat-themed memecoins dominating available in the market cap progress over the previous six months. By December, their share in whole memecoin market cap elevated to three.6% and three.8%, respectively.
By way of buying and selling quantity, dog-themed memecoins emerged because the fastest-growing class, with a 226% improve over the previous six months. Nevertheless, earlier than the U.S. elections in November, political memecoins have been taking the lead in buying and selling quantity progress. Following the occasion, most political memecoins noticed a greater than 80% drop in buying and selling quantity, dropping market attraction.
Notice: The efficiency from June 1, 2024, to December 1, 2024.
Transferring outdoors Ethereum
In earlier cycles, top-ranking memecoins primarily consisted of Dogecoin and a wide range of Ethereum-based tokens. Nevertheless, the 2024 memecoin growth prolonged to different networks, with Solana being the most important winner, at present accounting for 15% of market cap and 30% of buying and selling quantity throughout the sector.
Over the past six months, the most important progress in market cap has been noticed in TON-based memecoins, with buying and selling quantity rising over 750 instances, albeit nonetheless accounting for a minor share (1% and a pair of% in whole memecoin market cap and quantity, respectively).
Notice: The efficiency from June 1, 2024, to December 1, 2024.
New Memecoins Lead in Futures Open Curiosity
At the beginning of 2024, most memecoin-related futures open curiosity was centered on Dogecoin, which held round 65% of the sector’s share. Nevertheless, open curiosity later diversified to incorporate newer memecoins, with WIF attaining a staggering 15,000% improve over 11 full months of 2024.
Following the March memecoin rally, market consideration in futures shifted towards newly launched property. Over the past six months, POPCAT, BRETT, and MEW have proven triple-digit progress in open curiosity, rising as main memecoins within the futures market. This progress displays heightened investor hypothesis and volatility expectations, significantly amongst newer memecoins.
Notice: The efficiency from June 1, 2024, to December 1, 2024.
In consequence, the memecoin sector was one of many fastest-growing by way of crypto hypothesis, with the highest 10 memecoins now accounting for greater than 4% of whole futures open curiosity.
By November, Dogecoin maintained its place as a number one memecoin by way of open curiosity within the futures market, retaining its 65% share. Nevertheless, that is primarily as a result of creation of the Department of Government Efficiency (DOGE) following U.S. elections, which reestablished curiosity within the Dogecoin market. Earlier than the information concerning the launch of this establishment, Dogecoin’s share in memecoin open curiosity was round 51%.
Notice: The share distribution as of December 1, 2024.
Half 3: Exploring Memecoin Amplifier Throughout Market Volatility
Given memecoins’ rising share within the crypto market, we determined to investigate volatility occasions to gauge the sector’s sensitivity to market swings. We examined weeks with ±10% value modifications for Bitcoin and Ether, utilizing them as triggers for general market motion. This evaluation targeted on the efficiency of the highest six memecoins, which collectively accounted for over half of the sector’s market cap and buying and selling quantity in 2024. These property embrace DOGE, SHIB, PEPE, FLOKI, WIF, and BONK.
Key Insights: Bitcoin Volatility
Bitcoin noticed 8 weeks of double-digit value modifications in 2024, yielding the next insights:
- Memecoins have outperformed Bitcoin throughout value surges, however suffered bigger drops in downturns.
- DOGE and BONK have proven the strongest correlation with Bitcoin, with a mean sector correlation of 0.7.
- The typical “memecoin amplifier” impact was 2.89x (or 2.09x excluding a surge in early March). Because of this for a ten% Bitcoin value change, memecoins exhibited common volatility of 28.9% and 20.9%, respectively.
Key Insights: Ether Volatility
Ether’s 2024 volatility, with 13 weeks of double-digit value modifications to date, advised the next:
- Memecoins had a better common correlation with Bitcoin (0.74) throughout Ether’s fluctuations.
- Memecoins underperformed Ether in additional than half of the noticed instances, suggesting Ether’s value modifications have a restricted impression on memecoin efficiency.
- The typical memecoin amplifier impact was 2.65x (1.35x excluding the Week 9 anomaly).
These value swings revealed that memecoins thrive extra in Bitcoin-driven rallies than Ether ones. Moreover, common memecoin amplifiers have been bigger throughout BTC value surges than drops, even excluding the anomaly surge in early March.
As a consequence of comparatively excessive correlation and sensitivity to Bitcoin strikes, the most important memecoins may doubtlessly act as high-risk, high-reward proxy bets on Bitcoin. It is because Bitcoin serves as the first driver of general market sentiment, whereas high memecoins may very well be seen as bets on this sentiment. Not like Ethereum, which is closely tied to utility-driven initiatives, Bitcoin’s simplicity as a retailer of worth aligns extra intently with the memecoin market’s speculative, hype-driven nature.
In consequence, memecoins can amplify Bitcoin buying and selling by performing as a gateway for retail buyers who’re in search of larger/sooner returns throughout Bitcoin rallies. This inflow can feed again into Bitcoin as merchants rotate income or losses between memecoins and Bitcoin, intensifying each buying and selling quantity and volatility.
Memecoin Efficiency Throughout Excessive-Influence Occasions
Memecoins have additionally been extra delicate to high-impact occasions, typically reacting with amplified strikes, surpassing each BTC and ETH in both route. Inside per week, memecoin response usually accelerates if there’s a broader crypto market rally, or smooths out relying on the efficiency of high digital property. For instance, through the Yen carry commerce unwinding in early August, high memecoins practically offset losses as Bitcoin shortly rebounded.
Desk: Digital asset value efficiency amid main 2024 occasions. Notice: “Memes” efficiency consists of the common value change of the highest 6 memecoins over 1-day and 7-day durations.
Conclusion
Memecoins are now not a joke — their market share in crypto has surged by 2-4 instances over the primary 10 months of 2024. In November, the affect of memecoins expanded even additional, experiencing a brand new hype wave. Furthermore, this can be just the start. Bitcoin’s dominance has been predominantly on the rise all through this yr, with only three brief altcoin seasons so far. In earlier cycles, post-halving rallies have coincided with declining Bitcoin dominance and prolonged altcoin seasons. Consequently, the following 6-12 months may see memecoins flourish much more, doubtlessly establishing a stable sentiment indicator for your complete business.
The net content material supplied by CEX.IO is for academic functions solely. The data and instruments supplied neither are, nor must be construed as, a proposal, or a solicitation of a proposal, or a suggestion, to purchase, promote or maintain any digital asset or to open a specific account or have interaction in any particular funding technique. Digital asset markets are extremely risky and might result in lack of funds.
The provision of the merchandise, options, and companies on the CEX.IO platform is topic to jurisdictional limitations. To grasp what services and products can be found in your area, please see our list of supported countries and territories. This web page consists of extra hyperlinks to details about particular person merchandise, and their accessibility.
