ACT Goes Online 10x, Why is Meme Coin Still Hot, and What is the Current Situation? | TrendX Research Institute

As of November 10th, the data statistics for BTC, ETH, and TON on the TrendX platform are as follows:

The discussion frequency of BTC last week was 20.53K, an increase of 21.23% from the previous week; the price last Sunday was $81,357, an increase of 19.2% from the previous Sunday.

The discussion frequency of ETH last week was 5.75K, an increase of 50.03% from the previous week; the price last Sunday was $3,203, an increase of 27.1% from the previous Sunday.

The discussion frequency of TON last week was 786, a decrease of 2.48% from the previous week; the price last Sunday was $5.42, an increase of 0.83% from the previous Sunday.

Just today, Binance launched AI Meme projects ACT and PNUT. As soon as the news came out, the ACT token skyrocketed by about 10 times, breaking the record of the increase in Meme coins on the exchange, and also bringing a bit of shock to the industry. It seems that exchanges are turning their attention to Meme.

This month, Binance Research Institute released a report titled "Understanding the Rise of Meme Coins." The data in the report shows that since 2022, the total market value of Meme coins has increased from 4% to 11% in 2024. In just two years, the total market value of Meme coins has nearly tripled. According to a report released by Bybit exchange in June this year, institutional investors' holdings of spot Meme coins increased from $62.5 million in February to March to $204.8 million, reaching a peak in April with a total holding of $293.7 million, an increase of nearly 500%. The wind of Meme coins is getting stronger and stronger, with DOGE, SHIB, PEPE, GOAT... Suddenly popular Meme coins have made many people rich, but also left people puzzled. This article will help you understand why Meme coins are so hot and analyze the current situation of their track.

The Rise of Meme Coins

Meme coins - a type of cryptocurrency based on internet memes. They are usually created by developers or enthusiasts, inspired by popular memes or internet culture, and widely circulated through social media and online forums.

From the definition of Meme coins, we can see that unlike other cryptocurrencies, Meme coins may be created for the purpose of humor and entertainment. These Meme coins do not have specific uses or practical applications, but they inadvertently provide investment opportunities about consensus when inspiring people's sense of humor. This basic concept has also laid the foundation for the strong trend of Meme coins this year. The following are the reasons for the sustained popularity of Meme coins this year:

1. Financialization of Internet Culture

The viral spread and community-driven appeal of Meme coins have extended to the financial field through encryption technology, achieving the financialization of Meme coins. From being a presence in internet culture, after being financialized, Meme coins have been given value and can be traded, becoming a financial instrument.

As one of the basic conditions for financialization, these Meme cultures have gained consensus in the internet "market," which is also one of the biggest characteristics of Meme coins - they have no practical use but are attractive: Meme coins are based on internet culture, memes, or popular trends, usually without clear practicality or intrinsic value. They represent a new, fairer, and more democratic opportunity for wealth creation, with no pre-mining, team allocation, or venture capital allocation. All tokens are equally available to all participants at the time of issuance.

2. Global Macroeconomic Impact

This is a butterfly effect caused by the US dollar. During the COVID-19 crisis, central banks around the world engaged in unprecedented quantitative easing, leading to a 25% increase in the total global money supply from $81 trillion to $102 trillion. This "massive easing" has made high-risk investments more attractive, and funds have begun to flow into high-risk, high-return investment tools, including Meme coins.

This rapid expansion of the global money supply has also led to global inflation and rising commodity prices. The US inflation rate reached 7% in 2021 and 6.5% in 2022. Faced with currency devaluation, rational actors have invested their funds in assets considered to have long-term value. As a new asset category, Meme coins have attracted some excess capital.

3. "Fast and Furious" Strategy of Meme Coins on Major Public Chains

Meme coins, as the "vanguard" of ecological development, are seen as promoting the subsequent development of various major blockchain ecosystems by attracting market attention and funds. Its dissemination has the characteristic of periodic high heat. In 2024, Meme coins have shown periodic high heat, spreading like a contagious disease, and usually accompanied by exponential growth through the dissemination of social media and communities.

These factors have collectively driven the explosive rise of Meme coins in 2024. Its rise is not only a reflection of changes in the financial market, but also the result of the dissatisfaction of the younger generation with the traditional financial system and their search for new investment opportunities. At the same time, the dissemination model and value proposition of Meme coins have also attracted the attention and participation of a large number of investment institutions.

Mainstream Institutions' Views on the Meme Coin Track

It can be said that since this year, Meme coins have increasingly become an important focus for institutional investors. Since the second half of 2024, some VCs have announced their investment in Meme coin infrastructure, transforming Meme coins from being opposed by VCs to gradually being accepted by VCs.

1. Binance

As early as 2023, Binance Labs invested in multiple Meme coins, and in 2024, it continued to show enthusiasm for the Meme coin track. In January, it invested in the native ecosystem token MEME of Memeland, which was included in the Binance Launchpool in October 2023. Subsequently, Binance Labs supported the development of its Whyanelephant project.

https://app.trendx.tech/project/Binance/d93f04bf

2. Coinbase

Coinbase Ventures has been supporting DOGE since 2018, although the specific investment amount has not been disclosed, but the project has accumulated a lot of support in the community. In 2021, Coinbase Ventures invested in SHIBA, and the parent company Coinbase announced the addition of Bonk to its tradable asset list at the end of 2023. After the GOAT became popular, Coinbase CEO Brian Armstrong proposed setting up a crypto wallet for Truth Terminal, which reflects their continued attention to the Meme track.

https://app.trendx.tech/project/Coinbase/8266deca

3. a16z

As a well-known mainstream venture capital institution, a16z was initially not friendly to the market-seizing Meme coins. Several senior leaders of a16z have tweeted harsh criticisms of Meme coins, saying that they have undermined the long-term vision of cryptocurrencies, stating that this is a casino in the crypto world.

https://app.trendx.tech/project/a16z%20Crypto%20/504d96d6

However, a16z has recently changed its critical attitude from the first half of the year and frequently participated in Meme events. First, a16z co-founder Andreessen Horowitz rewarded $50,000 worth of BTC to the machine account Truth Terminal on X, which gave birth to the recent hot GOAT, pushing GOAT from an unknown project to a historical high market value of $850 million, and Truth Terminal became the first AI millionaire, also driving the development boom of AI+Meme.

Strong Performing Meme Coin Projects This Year

Meme coins are the "get rich quick" concept we hear about every day. Compared to other sectors in the cryptocurrency market, the Meme coin sector clearly has a very strong "get rich quick" effect. For example, SHIB rose 500,000 times, DOGE rose 400 times, and these myths of wealth creation have attracted countless traffic and funds to enter the cryptocurrency industry. However, the Meme coin track is not just a flash in the pan, and this wave of wealth creation myths is continuing.

1. DOGE (Dogecoin)

As one of the pioneers of Meme coins, DOGE has always been known for its community support and market performance. In 2021, DOGE gained mainstream popularity, with its market value increasing from $700 million on January 1 to $88 billion in early May, an increase of over 100 times in four months.

https://app.trendx.tech/project/Dogecoin/cf4ef589

Currently, DOGE's market value is around $36 billion. Of course, mentioning DOGE tokens also cannot ignore the huge traffic and influence brought by Musk. He has mentioned his liking for DOGE several times on Twitter, and recently, due to his support for Trump winning the US election, the price of DOGE tokens has risen by 140% in three months and 70% in seven days. The influence of such a world-class tech celebrity has a great impact on the development of DOGE.

2. PEPE

PEPE tokens went online in April this year, and in less than a month, the number of token holders' addresses reached 100,000, a rapid growth that was unprecedented at the time. Looking at the token price alone, the increase on the 22nd reached 120,000 times, with the price increasing from 10 zeros at the time of launch to 5 zeros, which not only attracted great attention in the market, but also caused a frenzy.

https://app.trendx.tech/project/Pepe/b098f7f2

The success of PEPE is a combination of multiple factors. After witnessing the crazy rise of DOGE and SHIB, people have been looking for the next MEME coin. The appearance of PEPE and its rapid growth has sparked people's FOMO emotions, fearing to miss out on opportunities like hundredfold tokens and thousandfold MEME coins. Therefore, the faster the growth in the early stage, the more people buy in, creating a self-reinforcing process.

In addition, exchanges have played a significant role in the development of PEPE. For example, PEPE tokens were listed on the MEXC exchange in just 6 days and on the world's largest cryptocurrency exchange Binance in 22 days, a treatment that many other mainstream tokens did not receive.

3. Degen

Degen is a representative Meme project on the Base chain, which was very popular in February-March before PEPE had an incident. Degen's early development was originally a community Meme project, with 100% Meme attributes. With the increasingly prominent attributes of Degen as a high-hat gentleman, the later support of Farcaster's official APP for Degen, as well as the support from various ecosystems of Base, has pushed its development and played a role in promoting the development of the Meme market, which also laid the groundwork for PEPE.

https://app.trendx.tech/project/Degen/f4a5572f

4. GOAT

AI Meme coin, its birth is even more creative. The fundamental reason for the rise of GOAT coin is the combination of AI and Meme coins, creating a novel concept, that is, AI autonomously issuing coins, which has never been tried before, making GOAT coin appear consistent and native under the backdrop of tens of millions in market value. Of course, without a certain amount of traffic support, it is difficult to be seen. GOAT initially entered the public eye thanks to the influence of a16z, with its co-founder Marc Andreessen giving $50,000 worth of Bitcoin to it, which brought initial attention and trust to GOAT. Moonshot's launch of GOAT also brought the convenience of fiat currency purchases, which sent its price soaring and completely entered a FOMO rhythm. Subsequently, GOAT's market value reached $600 million on October 20, and crypto big v's like Arthur Hayes even shouted that GOAT would reach a market value of $1 billion.

https://app.trendx.tech/project/GOAT/176250c2

5. ACT

ACT Meme is a cryptocurrency that combines AI technology with blockchain, aiming to create an ecosystem with the theme of "AI and Meme." The project, named "Act I: The AI Prophecy," is built on the Solana blockchain and provides users with an equal and collaborative digital interactive experience through its innovative AI-driven mechanism.

https://app.trendx.tech/project/Acet/84663b8c

Conclusion

The phenomenon of the hot Meme coins not only demonstrates the integration of internet culture and the financial field, but also signifies a new trend of combining Meme and AI. As an indispensable part of the cryptocurrency sector, Meme coins continue to attract the attention of global investors with their unique community-driven and cultural symbolism. With the intervention of AI technology, the innovative potential and market influence of Meme coins will further expand, bringing new vitality and possibilities to the cryptocurrency market. In the future, Meme coins will continue to play an important role in the cryptocurrency sector, driving industry development and change.

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