Deconstructing MEME: An Analysis of the Reasons for the Outstanding Performance of MEMEs in This Cycle

MEME spreads through imitation. Any information that can be replicated through imitation can be called a MEME, and its manifestations include music, ideas, or styles, etc. The process of MEME propagation conforms to the life cycle theory, and the mode of transmission is applicable to infectious disease models, but the criteria for strong MEMEs are still difficult to quantify.

MEMEs appear in different forms in various cycles. With the changes in cycles, their characteristics and mechanisms also vary. MEMEs can reflect investors' mentality and market trends at different times to a certain extent, encompassing prospects for new technologies and narrative directions.

The current bull market wave of MEMEs is influenced by a combination of social, psychological, economic, and technological factors. At this stage, MEMEs can be roughly classified based on mechanism innovation, market narrative, market sentiment, meme culture, celebrity effect, and hot copy trading. Its gameplay mechanisms are diverse, and a reasonable strategy must be established to make a profit.

There are significant differences in the views of institutions, retail investors, and KOLs regarding the future of MEMEs. MEMEs should not only be interesting but also meaningful, and they should not become merely speculative tools.

Since the birth of Bitcoin, MEMEs have performed well in every cycle. From Litecoin to Dogecoin, and then to NFTs and zoo MEMEs, MEMEs present themselves in various ways, with their characteristics and mechanisms evolving over the cycles. Understanding their development history and current status can help better comprehend the performance of MEMEs.

Currently, the MEMEs with higher market capitalization are mainly concentrated on public chains such as Ethereum, Solana, Base, and Bitcoin ( BRC20). MEMEs on different public chains exhibit different characteristics and trends.

The success of MEMEs may stem from the following aspects:

• Innovation in gameplay mechanics
• Capture the direction of the market narrative
• Elusive market sentiment
• Strong meme culture
• The influence of celebrity effect
• Imitation of related hot topics

The reasons why MEMEs are receiving much attention in this round of bull market can be interpreted from the following points:

• The demand for mainstream narratives
• Improvement of infrastructure
• Support from the public chain official
• Alignment of Consensus Philosophy
• Market FOMO sentiment
• The impact of the wealth creation effect
• Characteristics of a bull market with no one taking over

The gameplay mechanics of MEMEs are becoming increasingly diverse. Mastering good strategies is essential to profit in the harsh financial markets. Common strategies include:

• Trading strategies driven by public sentiment
• Technology-driven trading strategies
• Trading strategies based on financial mathematics

There are differing opinions on the future of MEMEs. Some believe that MEMEs undermine the long-term vision of the crypto space, while others think that MEMEs are a low-barrier way to attract more people to Web3. Vitalik Buterin believes that MEMEs should be both interesting and meaningful, and should not become mere speculative tools.

How to define high-quality MEMEs, what kind of projects can be considered high-quality MEMEs, it is still difficult to reach a consensus at this stage. The future development of MEMEs is worth looking forward to. Before learning to construct, do not treat the deconstructed items as the final answer to the problem.