Memecoins grow by 500% to $120B in 2024

Memecoins have become a major market segment, reflecting a shift in how value is created and perceived, according to DWF Labs.

In a report, the venture capital firm explains that what began with Dogecoin (CRYPTO:DOGE) as a satirical comment on cryptocurrency has now grown into a serious market vertical attracting significant capital.

DWF Labs described memecoins as a combination of social dynamics, technological innovation, and market psychology.

They believe that memecoins are a part of a broader change in how younger investors approach wealth creation, community-building, and investments.

The firm also noted the significant growth in the memecoin market in 2024. According to data from CoinMarketCap, the total market capitalisation of memecoins surged from $20 billion in January to $120 billion by December, marking a 500% increase.

“Before blockchains, companies were required to demonstrate operational history, revenue growth and financial controls. This tech innovation collapsed time and cost requirements for launching tradable assets, democratising access to capital markets,” said DWF Labs.

DWF Labs attributed this new era of asset creation to the increased efficiency provided by crypto infrastructure.

This shift has allowed meme-based projects to thrive, which reflects a fundamental transformation in how assets can be created and distributed.

Looking to 2025, DWF Labs sees the continued dominance of animal-themed memecoins, such as those featuring dogs and cats. They also predict that "agentic memecoins" linked to artificial intelligence may gain traction.

The firm suggested that thematic memecoins, such as those centered around trending topics or internet culture, could also become popular.

However, December 2024 saw a drop in the memecoin market, with the total market cap declining from $120 billion to $92 billion by December 23, representing a loss of about $45 billion.