Memecoins market analysis

The global memecoin market valuation fell below the $50 billion mark in June 2024, down 25% from the $65 billion peak recorded in May. The top 2 legacy meme projects, Dogecoin and Shiba Inu lead the way with monthly losses in excess of 20%, while PEPE also failed to hit the all-time highs recorded in May. 

Meanwhile, new memecoins like Donald Trump linked (DJT), and Solana-based Dogwifhat (WIF) made giant strides scoring significant gains towards the end of June. 

As July 2024 unfolds recent developments suggest that investors are showing preference for new market categories emerging within the memecoin sector. 

New Memecoin Markets Emerge amid Turbulent June Performance

The global crypto market downturn in the second-half of June 2024 impacted the memecoin sector sector significant. But new trends emerging, and increased social participation signals a potential bullish breakout when the negative market sentiment shifts. 

Over the years, the global memecoin market was limited to cult-following and social media trends. However recent market events show that new sub-sectors and categories are springing up. 

Here are 3 memecoin markets to explore, for potential gains in July 2024. 

Legacy Memecoins: VanEck’s Solana’s ETF Application Could Spark BONK Rally. 

Legacy memecoins refer to the early, pioneering cryptocurrencies that were initially created as a joke or parody but have since garnered substantial popularity and market value. These coins often started with light-hearted or humorous intentions, leveraging internet memes and cultural references to gain attention. 

Despite their whimsical beginnings, some legacy memecoins have evolved into significant players within the cryptocurrency market, with the likes of Dogecoin and Shiba Inu breaking into the top-20 ranked crypto boasting large communities and substantial market capitalization.

Within the legacy memecoin markets, the June 2024 performance suggests that investors are now showing preference for low-cap and mid-range memes at the expense of the mega cap assets like DOGE and SHIB. 

In reference to this PEPE has soared to 2 new all-time highs in May 2024, while DOGE and SHIB struggled for traction. Notably, since US-based fund manager VanEck applied for Solana spot ETFs in late-June, investors attention appears to be switching towards Solana-hosted memecoins. 

If approved by the US SEC, billions of dollars of investment from institutional players could flow into the Solana memecoin ecosystem. This puts the likes of Dogwifhat (WIF) and BONK on the verge of a major upswing in July 2024. 

As observed in the chart above, BONK has already scored a 47% rally since the VanEck filed spot SOL ETF last week. If positive developments follow, BONK could be one of the memecoins to watch in July 2024. 

Product Memecoins: Exploring a New Trend

Product memecoins are the latest fad shaking things up in the crypto memecoin market. Unlike their animal-themed predecessors in the legacy meme sector, these grocery-themed tokens tap into everyday products to foster a sense of community and offer the potential for real-world utility. The early success stories of BEER and WATER, coupled with the rapid growth of TEA, demonstrate the potential of this new wave.

Marking a global shift from animal-based memecoins, the likes of $BEER had a presale of 30,000 SOL and grew over 330% in a month, while $WATER’s campaign raised $41 million.

The latest product memecoin to enter the market is $TEA, a token that aims to combine the elegance of tea culture with the fast-paced world of cryptocurrency. 

TEA’s core narrative revolves around tea’s unifying and stress-reducing properties, attracting a rapidly growing community of 3 million users. With a structured tokenomics model and a presale starting July 1st, $TEA focuses on DeFi features, community engagement, and social responsibility initiatives.

On July 1, TEA raised over $3.4 million within 10 minutes post-launch before reaching the $4.5 million mark on July 3. Having closed out 4 out of 5 rounds within a relatively short-period, this signals investor interest in the newly-launched asset.

While the long-term viability of these tokens remains to be seen, their focus on relatable products and potential for real-world benefits like community initiatives and exclusive perks paint a promising picture. This shift suggests a move towards memecoins with a more defined purpose beyond pure speculation.

Political Memecoins: DJT Could Breakout as Donald Trump Lead Widens  

Political memecoins are a unique subset of cryptocurrencies that merge the world of digital assets with political commentary and satire. These coins often aim at attracting attention and engagement from politically-driven individuals and communities. 

While they share the humorous and meme-centric nature of traditional memecoins, political memecoins also serve as a form of social commentary, reflecting the creators’ views or critiques of the political landscape.

Over the past few months, the likes of Elizabeth Whoren (WHOREN) and MAGA and Jeo Boden (BODEN) have all made giant strides in terms of media traction. However, 

DJT, linked to former U.S. President Donald Trump has emerged as the stand out performer toward the end of June 2024. 

TrumpCoin (DJT) was launched to capitalize on Trump’s enduring influence and controversial persona. In recent weeks DJT has seen periods of intense trading activity, often correlating with Trump’s appearances in the media or significant political events. 

At the time of writing on July 2024, DJT is trading around $0.0098 with a market capitalization hovering around the $100 million markt. Additionally, the general election season typically heightens political engagement, providing fertile ground for politically themed cryptocurrencies to capture investor interest and potentially see significant price increases.

Hence, DJT is positioned for a potential price breakout in July 2024 as Trump’s presidential campaign continues to gain traction ahead of the November elections. 

To recap, BONK and DJT look set to dominate the legacy and political memecoin sub-sectors respectively, while emerging product meme –-TEA’s recent successful launch on the Solana network also shows promising bullish signals as July 2024 unfolds.