With the bull market back in full swing, the memecoin season has returned with an unprecedented trend and new adoption. If you’re seeking a comprehensive guide to grasp this surge, this article will definitely meet your needs.

TL;DR

• In 2024, memecoins have emerged as unexpected leaders in the crypto market, outperforming established cryptocurrencies in profitability. This year’s memecoin surge is distinctive for its emphasis on platforms such as Solana and Base, introducing unforeseen impacts and innovative technologies that are transforming the cryptocurrency landscape.
• The memecoin surge on Solana was catalyzed by the Silly Dragon phenomenon, bolstered by a robust user base, anticipation of airdrops, and a diverse ecosystem. Prominent memecoins like BOME, Slerf, and Dogwifhat (WIF) have thrived within this environment, contributing to Solana’s memecoin popularity.
• As the dark horse in this race, Base benefits from Coinbase’s backing and its position within the Ethereum ecosystem, leveraging robust infrastructure and incorporating trending SocialFi elements like Farcaster. Leading memecoin projects on Base include Brett, Degen, Toshi, and Based USA, showcasing the platform’s diverse and thriving memecoin ecosystem.

What are Memecoins and How do they Work?

Memecoins are cryptocurrencies designed as playful projects that honor memes, often inspired by internet trends and sometimes featuring animated characters, animal meme images, or humorous concepts captured in images or videos. Like memes, memecoins are launched to go viral and be widely shared. Nearly all of them lack fundamental value or unique use cases, so the primary purpose for most memecoins is pure speculation.

Dogecoin (DOGE), the inaugural memecoin, originated as a playful satire of the enthusiasm surrounding Bitcoin and other prominent cryptocurrencies in late 2013. It was crafted by software developers Billy Marcus and Jackson Palmer. Much to the creators’ astonishment, Dogecoin gained rapid popularity, attracting over a million visitors to dogecoin.com within its inaugural month. What added to Dogecoin’s comedic appeal was its status as a fully operational cryptocurrency, complete with its own blockchain (DogeCoin Blockchain) and a mining mechanism similar to Litecoin’s. In 2019, celebrity Elon Musk tweeted on Twitter, “Dogecoin might be my favorite cryptocurrency. It’s quite interesting.” This comment propelled Dogecoin into Google Trends and made it widely recognized. Additionally, SpaceX allowed users to pay with DOGE for Starlink service.

In summary, there are five key characteristics of memecoins:

1. Originating from a meme or joke
2. Typically lacking utility, primarily valued for trading
3. Initially priced at very low token values
4. Prone to rapid popularity spikes driven by social media or community support
5. High volatility

The Significance of Memecoins

As previously mentioned, memecoins are built for fun and generally lack the utility of currencies like ETH. However, why are they still important in Web3?
First, memecoins foster a sense of engagement, community, and cultural movement that few other tokens or coins can match. They appeal to a wide range of audiences, from seasoned veterans to newcomers. Additionally, memecoins often serve as a gateway into the cryptocurrency world. Many investors start with memecoins and then transition into DeFi, helping more people engage with and understand the broader cryptocurrency ecosystem. Importantly, memecoins can also drive innovation; for instance, Dogecoin’s pioneering work has inspired the creation of many other coins featuring dogs.

Why Memecoins Are Booming in 2024

So, memecoins continue to have a place in Web3, but why did they experience a surge in 2024, and what makes this surge different from the past?

In Q1 2024, memecoins have proven to be the surprise performers of the crypto market. According to a report by CoinGecko, memecoins were the most profitable crypto trend during this period, outperforming even the more established cryptocurrencies. And Respected analyst Bluntz has pinpointed two memecoins expected to thrive in 2024: Pepe (PEPE) and Floki (FLOKI). Bluntz believes PEPE has more room for growth, while FLOKI, although not expected to match PEPE’s performance, still shows promise. As you know, the mentioned memecoins are on Ethereum, but in 2024, the primary battlegrounds are elsewhere, specifically on Solana and Base. They bring about unexpected effects and innovative technologies that reshape the cryptocurrency landscape.

Major Memecoin Blockchains: Solana vs.Base 

The meme season on Solana kicked off first with SILLY. Following Solana, the Base chain has emerged as a popular hotspot for memecoins. According to Step Finance’s statistics, more than 640,000 new tokens have been introduced on Solana since April 1. This information is displayed on a Dune Analytics dashboard, tailored to monitor the quantity of new tokens launched on pump.fun. As a Solana-powered memecoin platform, pump.fun allows users to deploy tokens on Solana at a low technical cost. Consequently, the revenue they generate follows a similar trend as the tokens deployed on Solana.

On the flip side, within the Ethereum ecosystem, the number of tokens created on Base experienced a significant surge starting in February and peaked in March at 240,784. This tremendous growth in new tokens has coincided with a sharp surge in the total value locked (TVL) on Base, possibly driven by the frenzy surrounding memecoins.

As we conclude this section, the chart indicates that there’s still a gap between the number of new tokens on Solana and Base. However, does this data suggest that Solana has outperformed Base? Or what could be causing this difference? Let’s delve into the distinct meme cultures on the two chains.

Solana: Fusing Community, Airdrop, and Technical Excellence

Solana, known as an Ethereum killer, was launched in 2020 and features high transaction speeds, decentralization, and scalability, effectively addressing the classic blockchain trilemma. Its superior efficacy compared to Ethereum has made it the top choice for developers and users alike. However, with the emergence of massive Layer 2 (L2) solutions later on, the advantage gradually diminished.

However, Solana experienced a resurgence towards the end of 2023, notably with ARK Invest CEO Cathie Wood expressing a positive attitude towards Solana’s efficacy and capabilities. Moreover, Solana has launched various new technologies and marketing initiatives, such as Solana Mobile and memecoin airdrop. In addition, Solana partnered with PayPal to extend the utilization of USD (PYUSD) on its platform, reaching into Web2 and TradFi sectors.
The surge of memecoins stemmed from the Solana Breakpoint event on September 6, 2023. At this event, co-founder Anatoly donned a green dinosaur costume and amusingly referred to himself as “a silly dragon.” On November 8, Anatoly posted “year of the silly dragon” on Twitter and followed SILLY’s official Twitter account, calling for the creation of the “Silly Dragon Meme” in a loud manner. This action not only led to an increase in the value of SILLY coins but also sparked a significant buzz.

Solana’s Meme Culture Explained

The silly dragon story embodies the genesis of meme culture on Solana. However, its continued flourishing is sustained by a loyal and extensive community, airdrop initiatives, technical advantages, a robust ecosystem, and other factors.

• Community: The success of memecoins hinges on community strength, exemplified by Solana’s vibrant and resilient community. Solana’s ongoing enhancement of open-source initiatives since mid-2021 underscores its commitment to transparency and community trust in blockchain, fostering cohesion and credibility among developers and users, with the growing number of monthly active addresses serving as evidence.
• Airdrop: Airdrops, as marketing initiatives, have proven to be highly effective, with numerous opportunities available on Solana such as Jupiter, Kamino, Parcl, Tensor, and others. These initiatives not only incentivize early adopters but also attract new users to Solana.
• Technical advantages: A significant factor driving the daily launch of numerous tokens on Solana is pump.fun, a meme launch platform on Solana. pump.fun reduces the technical barriers to token launching, streamlining the process and offering affordability simultaneously. 
• User Experience: The initial adoption of Meme tokens on Solana encountered a barrier due to wallet distinctions from Ethereum, coded in Rust or C. The surge of SOL tokens, together with wallets like Phantom, facilitated users’ transition to Solana’s distinct wallet structure.
• Diverse Ecosystem: The memecoin projects on Solana are both plentiful and varied, showcasing a range of features and capabilities. For instance, Samo Coin (SAMO) focuses on community development, while BOME gained traction thanks to Darkfarm’s prominence in the meme scene.

One distinct feature of memes on Solana is the pre-funding model, where project executors leave their contract addresses on X and allow anyone to deposit SOL into these addresses. After launching officially, tokens are sent to depositors’ wallets. For example, BOME and Bobaoppa adopt this approach and generate a sense of FOMO.

Introduction to Memecoin Projects on Solana

• BOME: BOME, also known as Book of Meme, was launched by Darkfarm, a renowned Pepe artist. It adopted the pre-funding model and was listed on Binance in just 3 days. One of the reasons that contributed to its all-time high (ATH) is the founder adding all funding to the liquidity pool, which received significant praise.
• SLERF: SLERF stands out as the most dramatic example among memecoin projects. The team’s mistake in burning all the LP tokens from funding and the airdrop didn’t result in a price drop but instead triggered a significant surge in price. Moreover, the project also opened an account for donations and is listed on major exchanges like HTX, MEXC, and Bitget.
• Dogwifhat (WIF): “WIF” is a misspelling of “with” and is inspired by a dog wearing a hat, embodying the humorous factor of memes. Although WIF has few utilities, it was launched in November 2023 and saw a 227% increase in transaction value after one month. A comment from a major holder also reflects the nature of memecoins, as he said, “The dog wearing a hat always makes me laugh whenever I see the meme.”
• MOTHER: MOTHER was created by Australian rapper Iggy Azalea and launched on pump.fun. This case highlights how token launches can be incredibly easy, and one can even do so without knowing how to code. Despite criticism from Vitalik Buterin for its perceived lack of utility, MOTHER gained popularity instead.

Memecoin	Market Cap	Volume (24h)	All-time high
BOME	$584.7M	$116.18M	$0.02805
SLERF	$116.48M	$47.32M	$1.37
Dogwifhat (WIF)	$1.67B	$540.99M	$1.71
MOTHER	$56.69M	$34.16M	$0.2406

Base: Coinbase-Backed with American Humor Vibes

The increase in memecoins on Base Network can be attributed to the Ethereum Dencun upgrade, which reduced transaction fees on layer-2 networks like Base, making meme-driven ecosystems more accessible. Additionally, a notable aspect of Base is its affiliation with Coinbase, the largest cryptocurrency exchange in the US, which lends unparalleled credibility and provides access to a well-prepared user base. This connection with Coinbase also reflects the cultural characteristics of its memecoins, which have a distinctly American style, such as BASED USA (Make America Great Again) and Jogeco Dog (the dog of Coinbase’s founder).

One of the thriving memecoins on Base is Degen, initially nurtured within a SocialFi platform known as Farcaster by the Warpcast team. It fostered a community with incentives and a distinct meme culture following its launch on Base. Significantly, the team partnered with Syndicate, an infrastructure project, to introduce a customized Layer 3 (L3) on Base designed specifically for the community, driving $Degen to new heights. This case highlights the importance of community within memecoins, showcasing how SocialFi platforms can play a crucial role in fostering community engagement for projects.

Base‘s Meme Culture Explained

In addition to being backed by Coinbase, there are other factors that contribute to the benefits of memecoins on Base.

• SocialFi for community development: The two leading SocialFi projects are Farcaster and friend.tech. Farcaster functions as a protocol to pioneer new social networks, empowering users with data control and allowing developers to create apps without network permission. The Degen community thrives within this ecosystem. friend.tech introduces an innovative method for content creators to monetize their content through tokenized attention. Utilizing a unique ‘Keys’ system, friend.tech enables creators to monetize their influence while granting users access to exclusive content.
• Launching tokens at a low cost: Deploying tokens on Base is highly cost-efficient and swift. The transaction rate on Base reaches around 35 transactions per second (TPS), accompanied by a gas fee of approximately $0.11, making it a compelling choice for token deployment. That’s one of the reasons why there has been a surge in the number of memecoins.
• User Experience: As an Ethereum L2, Base comes with built-in advantages that cut costs for developing new infrastructure. For instance, when it comes to wallets, users can easily utilize Metamask without the hassle of learning a new system.

Why Build Layer 3 for Memecoins?

The introduction of Memecoin Layer 3 on Base represents a significant advancement, delivering tailored scalability, privacy protection, and various improvements. This positions Layer 3 for memecoins similarly to Apechain’s concept, facilitating rapid memecoin transactions and fostering a distinct community ecosystem. Among the prominent examples is Degen.

Introduction to Memecoin Projects on Base

• Brett: Brett stands out as the premier memecoin on Base, honoring a fictional character with no direct affiliation to its creator, Matt Furie. BRETT is affectionately known as “PEPE’S companion on BASE,” symbolizing one of crypto’s most iconic cultural figures and acting as the mascot of the Base blockchain.
• Degen: DEGEN is crafted to encourage and acknowledge active engagement within the Farcaster community. Users have the opportunity to acquire DEGEN tokens through diverse avenues, including tipping fellow users or engaging in a liquidity mining initiative. Following the launch of its Layer 3 (L3), the token’s value experiences another surge.
• Toshi: TOSHI is a memecoin named after Coinbase co-founder Brian Armstrong’s cat and the enigmatic creator of Bitcoin, Satoshi Nakamoto.
• Based USA: Based USA, also known as “The People’s Token,” is a meme token with the aim of fostering a community of patriots. It was designed as a tribute to American patriots and the nation’s illustrious heritage.

Memecoin	Market Cap	Volume (24h)	All-time high
Brett	$1.49B	$57.4M	$0.1939
Degen	$131.39M	$28.44M	$0.06459
Toshi (TOSHI)	$98.96M	$1.03M	$0.0007802
Based USA	$3.59M	$89K	$0.01373

The Founders’ Perspectives: Contrasting Attitudes Between Base and Solana

Due to different development processes and landscapes, the official attitudes differ between Base and Solana. The surge in Solana’s memecoin craze is fueled by collaborative efforts and endorsements from official entities. However, Solana’s leadership appears reluctant to be solely associated with the memecoin image. In April of this year, Solana co-founder Raj tweeted about memecoins causing concern among serious developers. He cautioned these developers, stating that if they are too fragile to embrace how young people use permissionless systems for entertainment, they may struggle to succeed. Previously, following a frenzy of money transfers, Solana co-founder Toly also urged the community to refrain from the pre-sale practice of money transfers.

On the other hand, Base adopts a different stance toward memecoins. Also in April, Jesse Pollak, head of Base’s ecosystem protocol, expressed support for memecoins, highlighting their significance in the on-chain economy. He welcomed the proliferation of memecoins and their role in expanding blockchain adoption globally. The vibrancy within Base’s ecosystem is evident, with memecoins attracting thousands of participants into this emerging economic landscape. The active memecoin economy is thriving within the Base ecosystem.

Debates Surrounding Memecoins: Do Memecoins Generate Positive Value?

The lack of clear use cases for most memecoins sparks debates in the crypto community. DeFi KOL 2Lambroz.eth predicts a fate similar to NFTs, with many memecoins fading and only a few, like Pudgy Penguin, surviving due to concerns about toxic teams pumping and exiting, draining liquidity and disillusioning retail investors. Many experts, including Vitalik, argue that celebrity memecoins should serve a public-good goal beyond enriching celebrities and early adopters. They advocate for fun mechanics that extend beyond token trading.

On the other hand, Uniswap founder Hayden Adams emphasized that the real purpose and value of this technology go far beyond mere financial activities. He underlined that the most exceptional innovators in this sector are driven by positive social impacts. Similarly, Solana founder Raj Gokal voiced support for memecoins, indicating that if one is too sensitive to the way young people use open systems for entertainment, they may find it challenging to thrive in this space. The president of the Solana Foundation Lily Liu also echoed Raj’s sentiment, noting that some memecoin founders she’s encountered are highly skilled builders focused on creating community value. Since crypto is essentially a financialized community, they are essentially laying the groundwork for an economic framework.

The Future Outlook for Memecoins

In summary, memecoins are vital in the cryptocurrency realm, fueling art creation, bridging to Web3, and driving innovation and extending acceptance. However, they are highly speculative, and it’s crucial to remember that they are part of a trend. One should be cautious and aware that only a few memecoins have meaningful development and practical applications.

How to Trade Memecoin Tokens: A Step-by-Step Guide

Now that you have a thorough understanding of memecoins, let’s explore the optimal platforms for trading them!

Uniswap

Since most altcoins/memecoins are introduced through a fair launch on Uniswap, trading on Uniswap is the predominant method for trading them. However, Uniswap only facilitates swaps within a single blockchain, thus direct asset swaps from other blockchains are not permitted.

Cross-chain Bridges Aggregator: XY Finance

Considering this, utilizing third-party cross-chain bridges for asset swaps may present a preferable alternative. XY Finance offers a convenient solution for this purpose!

XY Finance serves as a cross-chain bridge aggregator operating across 20 EVM chains, such as Base, Arbitrum, Blast, and more. Its user-centric approach facilitates effortless token swaps between different chains, ensuring users access optimal options at competitive prices.

Take action now! You can easily swap any Memecoins using these simple steps:

1. Visit XY Finance and connect your wallet.
2. Choose the source chain and token.
3. Select the desired memecoins and enter the amount. If the token isn’t listed, you can paste its address into the search bar.
4. Review and confirm the transaction. Your tokens will arrive in under 5 minutes.

(Know More About Trading Altcoins/ Memecoin: From Uniswap to XY Finance: Explore the Best Ways to Trade Altcoins Across 20+ Chains)

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