Meme coins have definitely won the bull market in 2024, reaching more than $50 billion in capitalization. Several new tokens have seen dynamic price gains in the first half of this year, yet meme coins continued to be animal-themed—just like their predecessors, Dogecoin and Shiba Inu.
New successful tokens like WIF and BOME have all maintained their traditional link to humorous and affectionate animals. However, it looks like this trend is slightly changing. While the usual cat and dog-themed tokens and some political meme coins are still dominating the market, there are a number of product-themed meme coins entering the scene in H2 2024.
Tied to everyday consumables like tea and beer, these tokens are carving a niche within the broader cryptocurrency market. Their emergence could potentially signal a shift towards more relatable and potentially utilitarian assets.
In the first quarter of 2024, the meme coin market experienced an unprecedented surge, with the total market cap reaching $60 billion in April—it constituted nearly 3% of the global crypto market capitalization. This surge was partly driven by institutional investments following the approval of Bitcoin ETFs by the SEC, which funneled liquidity into the crypto market.
As the market opened up to new opportunities for Solana-based tokens, a new trend of product-themed meme coins started appearing in the past few months. For instance, $BEER and $WATER have demonstrated impressive early success, with $BEER growing over 330% in a month and $WATER raising $41 million during its presale.
Product-themed meme coins are gaining popularity because of a very unique proposition. The value of these tokens is potentially tied to products people interact with daily. This approach has several advantages.
Firstly, these tokens tap into a broader demographic, creating a sense of familiarity and trust. They also foster a strong sense of community around common interests and everyday products. Most notably, these tokens can potentially offer real-world benefits, such as discounts on related products or access to exclusive community events.
The launch of $BEER and $WATER has paved the way for other product-themed meme coins. $TEA, for example, aims to blend the sophistication of tea culture with the fast-paced world of cryptocurrency.
Despite being a recent entrant, $TEA has already attracted a substantial following, with over 3.5 million community members on Telegram and a successful presale raising 38,888 SOL.
The rise of product-themed meme coins indicates a broader shift towards more relatable and utility-driven cryptocurrencies. This trend could drive significant capital inflow into the memecoin market.
However, these new assets also face challenges. The meme coin market is notoriously volatile, and the long-term viability of these tokens remains uncertain. Additionally, as with all cryptocurrencies, product-themed meme coins could attract regulatory attention, which might impact their growth and adoption.
Furthermore, to maintain investor interest, the initial hype around these tokens must be backed by sustainable growth and real-world utility. In March, more than 12 Solana meme coins were abandoned after raising $26.7 million in a presale.
Looking ahead to the second half of 2024, it’s evident that the meme coin market is poised for further evolution. Several factors will likely influence the market’s trajectory. Despite its halving in April, Bitcoin is yet to enter its projected bullish cycle. Another Bitcoin bull run later this year could see more funds flow into the meme coin market due to wider liquidations.
Developers will likely continue to explore new themes and concepts for meme coins, building on the success of product-themed tokens. Moreover, as institutional interest in cryptocurrency grows, more funding could flow into the meme coin market, driving further expansion and diversification.
One area to watch is the potential for cross-industry partnerships. Product-themed meme coins like $TEA could collaborate with established brands to offer tangible benefits to token holders, further enhancing their appeal and utility.
To sum it up, the meme coin market will likely continue evolving, driven by ongoing developments and increased investment. Product-themed meme coins, in particular, could play a crucial role in this next phase of growth, offering a unique blend of relatability and potential real-world utility.