In a post on X on Aug. 23, crypto analyst Murad Mahmudov explained why he thought that 'cult meme coins' would continue to outperform everything until the end of the market cycle.
Key Highlights of Crypto Cycles
Mahmudov noted that every crypto cycle has a few core narratives that dominate the market. In 2017, these were Ethereum, altcoins, and ICOs. In 2021, alternative layer-1s, DeFi, and NFTs. In this cycle, the main themes will be artificial intelligence, real-world assets (RWA), and meme coins.
Murad Mahmudov's Forecast
Mahmudov discussed past cycles where assets surged in the pre-final year of the bull run, followed by mega-pumps in the final year. Examples of such assets include ETH, XMR, and XVG in 2016-17 and SOL, ADA, MANA, and CryptoPunks in 2020-21. He noted that many in the crypto community were calling tops for meme coins but questioned, 'What if the spring 2024 pump we had on memes was merely the PRE-PRE-PUMP?'
Current State of the Meme Coin Market
Currently, the market cap for meme coins stands at $41.7 billion, representing just 1.85% of the total crypto market cap. Of this, 57% is dominated by Dogecoin and Shiba Inu, suggesting significant growth potential for other low-cap meme coins. Solana and Base have recently attracted meme coin minters due to their low fees and high throughput. Tron is also catching up, with thousands of new meme coins launched daily since the launch of SunPump.
Despite varying opinions on meme coins, they remain an integral part of the crypto ecosystem. According to Murad Mahmudov, they have substantial potential for further growth in the current market cycle.
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