A basket of prominent meme coins outperformed Bitcoin (BTC) and S&P500 in 2024

The meme narrative remained strong throughout 2024, becoming one of the strongest attractors of activity. A basket of 19 well-established meme tokens dramatically outperformed the S&P500, as well as Bitcoin (BTC) for most of 2024.

From February onward, the meme token index based on Artemis data outperformed Bitcoin (BTC) with dramatic peaks. Even during the last weaker months, meme tokens retained the lead. The assets also easily outpace the earnings of the S&P500.

Meme tokens were more volatile, but retained higher net gains in the year to date compared to BTC and the S&P500. | Source: Artemis

Meme tokens are more in tune with BTC than with altcoins or Ethereum (ETH), as investors search for assets with a more balanced distribution and fewer insiders. Memes also offered a low entry point, allowing traders to bet on a wider selection of assets and eventually strike a winner.

Meme tokens reached more than 183% net gains in 2024, with even better performance to the peak. In March, the meme token basket of 19 prominent assets yielded up to 338% gains. Meme tokens are highly volatile and erase gains more quickly. However, the ongoing trend in 2024 helped retain some of the earnings.

The Artemis basket of stablecoins includes Dogecoin (DOGE), which has remained relatively stagnant. The list includes a total of nine tokens that expanded with a market cap above $1B, and 10 more that are near that range. The index also includes Dog To The Moon, which is a Bitcoin rune and represents the value of virtually the entire rune market.

The Artemis index includes Shiba Inu (SHIB) and Floki (FLOKI), which aim to build utility and work as DeFi and gaming ecosystems. The newer cult tokens include WIF, POPCAT and Pepe. The index also includes top PolitiFi token MAGA. Some of the riskier tokens outperformed the index, though with a more volatile price action.

Meme tokens are here to stay

Meme tokens are not a safe bet compared to more liquid assets. Over time, sellers depress the price and 70% drawdowns within days are not uncommon. Involvement with meme tokens is now becoming a must for all crypto holders. Large market makers and whales are building positions on the down low, vetting the assets for their potential to outperform.

Meme token influencer Murad Mahmudov still considers memes a staple, with the potential to make even bigger gains and build impactful tokens with loyal communities.

A lot of people who are not public about it yet are starting to accumulate Memecoins.

The question is no longer “Are memecoins here to stay?” but “How high can they go?”

I believe some Memecoins will go even Higher than DOGE ATH of $94 billion.

— Murad 💹🧲 (@MustStopMurad) October 22, 2024

Whales also often roll over into the next asset, so there is almost always a meme token going through a rally. Top meme tokens go through new boom cycles as buyers rebuild their positions. Meme tokens are also replacing the speculative value of altcoins and other types of narrative assets such as DeFi or AI.

The positive performance is that memes are here to stay, though the exact selection of winners is uncertain. The Artemis data includes the top blue chip meme tokens with deeper liquidity. Yet even risky, just-launched memes are returning as a tool for fast speculative gains.

Memes are also evolving with new types, tapping the recent AI-generated hype. The inventions of LLM bots appear as brand-new tokens, often rallying within days on decentralized exchanges. Meme tokens are still building communities for long-term holding while sniping and reselling some of the assets is still in play.

The other big meme trend is SPX6900, which aims to tap the ‘financial nihilism’ niche and move away from animal tokens.

The SPX asset is facing headwinds but hopes to break out again on irrational demand, while breaking away from other meme types. Meme tokens may achieve long-term gains, but are at risk in the short term, as early buyers take profits. SPX, however, tries to tap the wider market trend with no limits to its upside.

SPX aims to prevent the competition between a large number of minor tokens, instead aiming for a super-trend where holders are afraid to sell, and will not want to chase the next token. Previous memes like SHIB also involved an element of holding by true believers, as the project expanded its valuation over time.

The entire meme token market is valued at $57B, with $5.85B in daily trades. Decentralized trading is part of the mix, with Raydium driving the trend with nearly $500M in daily trades. The ability of memes to outperform can make some traders choose the assets as a tool for offsetting sluggish performance from other tokens.

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