State of Memecoin 2024

Memecoins have been a fascinating phenomenon in the cryptocurrency world, capturing the imaginations of investors and onlookers alike. From the heights of Dogecoin’s popularity to the myriad of imitative projects that followed, memecoins have created both immense wealth and significant financial ruin.

However, despite their allure, memecoins still pose a significant risk and are known for their unpredictable nature. To gain a deeper understanding, we conducted a study on 30,000 memecoin projects. This report analyzes the current state of memecoins, emphasizing their volatility and examining the way they are portrayed and perceived by the media and the general public.

Key Findings

97%

of memecoins
have died.

6 out of 10

new investors view memecoins
as a must-have in their portfolio.

ON AVERAGE / 2020

memecoin projects
die each month.

1 YEAR
3 YEARS

AVERAGE
CRYPTO
PROJECT

The average lifespan of a memecoin is 1 YEAR, which is one-third the lifespan of an average crypto project.

OVER
HALF

of memecoins (55.24%) are malicious.

NEARLY One -Third

investors have experience
losses from scam memecoin.

MEMECOINS: A RISKY & VOLATILE INVESTMENT.

97% OF MEMECOINS HAVE DIED

Memecoins are infamous for their high risk and extreme volatility. A staggering 97% of memecoins have died, underscoring the precarious nature of these investments. The average lifespan of a memecoin is just one year, which is merely one-third the lifespan of an average crypto project. This rapid turnover underscores the speculative and often short-lived nature of memecoins, making them a risky investment choice.

Despite their volatility, memecoins continue to be a popular investment choice. Nearly 60% of memecoin investors view these assets as short-term investments. This perspective aligns with the high turnover rate

According to data from AlphaQuest, an advanced crypto research tool, 2020 memecoin projects died each month on average. The rate of memecoin demise outpaces the creation of new projects, with dead

2 OUT OF 3 BASE MEME COINS HAVE DIED

Different blockchain platforms exhibit varying death rates for memecoins. Base leads with a death rate of 66.91%, followed by Solana at 54.03%, and Ethereum at 36.59%. These figures reveal that memecoin instability is prevalent across various platforms, although some chains are more prone to high failure rates than others.

OVER HALF OF MEMECOINS (55.24%) ARE MALICIOUS

The memecoin market is significantly affected by malicious activities. Over half of all memecoins (55.24%) are deemed malicious. Base again tops the list with the highest rate of malicious memecoins at 59.15%, followed by Ethereum at 55.59% and Solana at 51.87%. Nearly one-third of investors (28%) have reported losses due to scam memecoins, highlighting the critical need for due diligence.

MEDIA SENTIMENT
& PUBLIC PERCEPTION

NEARLY 6 OUT OF 10 (58%) NEW INVESTORS
VIEW MEMECOINS AS A MUST-HAVE
IN THEIR PORTFOLIO.

Despite the high risks and volatility, memecoins have firmly established themselves in many crypto investors' portfolios. Two-thirds of crypto investors have invested in memecoins. This widespread adoption indicates a substantial belief in the potential for high returns, despite the known risks.

The perception of memecoins varies significantly among different investor groups. While 54% of all memecoin investors do not consider these assets essential to their portfolios, nearly 58% of new investors (those in the market for less than six months) view memecoins as crucial. In contrast, only one-third of investors who have been in the market for over a year see memecoins as a must-have. This indicates that as investors gain experience and perhaps suffer losses, they tend to adopt a more cautious approach toward memecoins.

Meanwhile, the media’s stance on memecoins is predominantly cautious. Only 13.77% of news reports about memecoins are bullish, reflecting widespread skepticism.

THE IMPORTANCE OF
RESEARCH & DUE DILIGENCE

Given the high prevalence of scams, conducting thorough research is crucial in the memecoin market. Audit reports have proven effective, with 81% correctly predicting whether a memecoin will turn out to be a scam. This emphasizes the importance of due diligence in protecting investments and navigating the risky memecoin landscape.

CONCLUSION

The state of memecoins in 2024 paints a vivid picture of high risk and rapid turnover. While the majority of memecoins have a short lifespan and high failure rate, they continue to attract investors due to their potential for quick gains. The prevalence of scams and the cautious media sentiment further complicate the investment environment.

However, by conducting thorough research and due diligence, investors can better navigate this speculative market. Understanding the dynamics and risks associated with memecoins is essential for anyone looking to invest in this unpredictable yet fascinating segment of the cryptocurrency world.

METHODOLOGY

We focused on 3 chains for this research, which are Solana, Ethereum and Base

A list of 30,000 cryptocurrency coins has been compiled on Dexscreener

Malicious Memecoin Analysis

For malicious memecoin identification, we referenced memecoin statistics on Dextool, gathering data on:

LOCKED LIQUIDITY

Did the project
lock liquidity?

VERIFIED CONTRACT

Did the project
verify contract?

HONEYPOT

Is the project
honeypot?

Coins failling any of these metrics were labelled as "Malicious".

Dead Memecoin Identification

We identified dead memecoins if they did not meet one of the following criteria:

24H Volume is under $1000 USD
No updates on twitter for 3 months

Liquidity pool is under 50,000
Twitter account deleted

Website down

We then assessed the lifespan of dead memecoins by examining the start and end dates on Twitter:

Start date: Register Domain
End: Last post date on twitter

Media sentiment & Public perception

Media Sentiment: We gathered a list of 1000 memecoin news articles using Google News. These articles were subjected to sentiment analysis to gauge the public's outlook on the future of memecoins.

Public Perception: To assess public perception, we conducted a survey among 511 crypto investors globally.

Audit Report

For this research, we compiled a list of scam memecoins by conducting Google searches. We focused on assessing three key factors outlined in audit reports to validate their accuracy:

LOCKED LIQUIDITY
VERIFIED CONTRACT
HONEYPOT