Memecoins have taken the crypto world by storm, but not for the reasons you think. According to CoinGecko, memecoins accounted for 14.3% of all transaction volume in Q2 of 2024, making them the biggest narrative in crypto. However, despite their meteoric rise, the way we understand memecoin communities needs a serious rethink.

Memecoins are more than a joke

Memecoins have become a prominent force within the cryptocurrency sphere, driven not just by humor but also by significant trading dynamics and community engagement trends. As pointed out by Murad Mahmudov during Token2049, memecoins capture a unique market position because they are often not tied down by traditional factors like venture capital or lengthy lock-up periods.

Instead, it’s their liquidity that becomes pivotal. Memecoins like FLOKI, which originated on Ethereum and transitioned to Binance Smart Chain, illustrate how these tokens leverage cross-chain strategies to remain relevant by tapping into diverse user bases.

Your idea of community is wrong

Memecoins' essence shifts beyond community-driven narratives. They represent a fluid combination of financial speculation and pop culture engagement. The perception that community stability defines a memecoin's value overlooks its transient nature — communities are underpinned by market momentum and shift with public interests. Essentially, they create a "tradeable social utility" where liquidity serves as a more stable foundation than rigid community ties.

Conclusion

As cultural dynamics evolve and technological advancements continue, memecoins like DOGE demonstrate their capacity for rapid change, often leading to remarkable price movements. The liquid nature of memecoins signifies their ongoing relevance in a fast-evolving crypto landscape.

Note: The views expressed in this column are solely those of the author and do not necessarily reflect those of any external entity.