What is Memecoin Supercycle?

Bittime - What is supercycle memecoin? This is a concept that predicts that memecoin will experience a period of spectacular price increases, surpassing other crypto assets. 

This term emerged after crypto analyst Murad Mahmudov's speech at the Token2049 event, which stated that memecoins have the potential to outperform traditional crypto assets in the next few years. 

But, what is this supercycle memecoin? What causes this trend to become a hot topic now? Keep following this article to find out!

What is Memecoin Supercycle?

Memecoin supercycle is a term that describes a period where a memecoin experiences extraordinary price growth. This exceeds the performance of other major crypto assets. 

Mahmudov explains that in a supercycle, memecoins can achieve tremendous success driven by strong community values. This phenomenon is similar to altcoin season or “alt season,” but specifically for memecoins.

This Supercycle is not just a momentary hype. Some of the main characteristics of memecoin supercycle include:

• Community Based Values: Mahmudov stressed the importance of a strong community in memecoins, even calling them "cults" or loyal followers.

• Outperform Traditional Assets: Memecoin is proven to be able to beat Bitcoin's performance in 2024, where 16 of the top 20 memecoins in the top 300 tokens show better performance than Bitcoin.

• Change in Investor Focus: This trend shows a shift in investor focus back to community-based coins rather than utility-based tokens.

Read also: 7 Meme Coin AI with Low Capitalization, Successor to $GOAT?

What Triggered the Memecoin Supercycle?

A number of factors could trigger a memecoin supercycle, including macroeconomic conditions and changes in investor behavior. Some of the key drivers predicted to support the memecoin supercycle include:

1. Global Economic Conditions: The reduction in bank interest rates since early 2024 creates high liquidity, so investors are more interested in high-risk assets such as memecoins.

2. Financial Nihilism: The YOLO (You Only Live Once) lifestyle encourages people to take higher risks in investments, making memecoins increasingly popular.

3. Cultural Shift: Many people search for meaning in financialized online communities, and memecoins provide a space for that.

4. Unique Product-Market Fit: Memecoin combines elements of ICO (capital raising) and NFT (community building), making it attractive to a wide range of investors.

5. Accessibility for Retail: The simple and accessible nature of memecoin is more attractive to retail investors than more complex crypto projects.

Can We Predict the Next Memecoin Supercycle?

Memecoin supercycles are very difficult to predict, given the high market volatility. However, there are several indicators that can help investors monitor the potential for a supercycle in the future, including:

• Market Sentiment: Data from Santiment shows a 43% increase in memecoin discussions on social media in Q3 2024 compared to Q2, indicating early market interest.

• New Memecoin Launch: Since January 2024, over 2.3 million new memecoins have been created, with a 300% increase in launches in Q1 2024 compared to Q4 2023.

• Listing on the Stock Exchange: Binance and Coinbase recorded a 50% increase in memecoin listings in 2024 compared to the previous year, with trading volume up 200% after new listings.

Even though this indicator shows a positive trend, Mahmudov warns to remain careful, considering that there are many players in this industry who may aim to make quick profits.

Read also: DOGE Price Rebounds, Here's the Analysis!

Memecoins that Have the Potential to Become Stars in the Memecoin Supercycle

According to Mahmudov, memecoins that have a loyal community of followers will gain huge profits during the supercycle. Here are some tokens that are predicted to have big opportunities in the upcoming supercycle:

• Dogecoin (DOGE): As the first memecoin, DOGE remains popular thanks to the support of its community and occasional support from well-known figures such as Elon Musk.

• Shiba Inu (SHIB): SHIB is known as a Dogecoin competitor and has developed a layer-2 solution, Shibarium, which strengthens its position to expand in the supercycle.

• Baby (BABY): Launched in 2023, PEPE gained popularity thanks to the widely recognized Pepe the Frog meme, with explosive growth in early 2024.

• Dogwifhat (WIF): This emerging token recorded significant growth in early 2024, becoming the third largest memecoin with a market capitalization of $4.3 billion.

• Bonk (BONK): BONK gained attention in 2024 thanks to its lively community and unique approach, making it one of the interesting memecoins to watch.

Conclusion

The memecoin supercycle has become a huge trend that is attracting attention and investment, but it is important for investors to remain cautious. Memecoins do offer the potential for big profits, but the risk of loss is also high. 

For those looking to get involved in the memecoin supercycle, it is important to look for a project with an organic and decentralized community. This is to have a greater chance of success.

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