Authored by Zack Pokorny, a Research Analyst at the firm, the report delves into the world of memecoins and their influence on the crypto economy. According to the report, memecoins have become a significant element of the crypto market, despite lacking technical innovation or blockchain scaling advancements. The report notes that memecoins are viral and relatable, leading to their proliferation and substantial value accumulation across the crypto landscape.

The report emphasizes that memes have been an integral part of human culture for centuries, serving as ideas, symbols, or behaviors transmitted within and between subcultures. Memes have historically played influential roles in societal changes, from cave paintings and Roman graffiti to newspaper comics. The report outlines the evolution of memes from ancient times to the digital age, describing how early humans used charcoal and chisels to create primitive memes, which evolved through various mediums such as paints, ink, and paper. The modern internet meme, born in 1993, marked a paradigm shift, enabling individuals to share memes on a larger scale.

Galaxy posits that blockchains represent the next stage in the evolution of memes, offering a standardized, permanent, and uncensorable platform for memes, making them globally accessible and further enhancing their distribution. The report describes memecoins as tokenized depictions of internet memes or humorous events, native to blockchains and tradable on decentralized exchanges (DEXes). Memecoins, such as Dogecoin, often have characters or visuals associated with them, similar to traditional internet memes. The report notes that the ease of launching memecoins, thanks to services that automate token creation and liquidity pool establishment, has led to a surge in the generation and speculation of memecoins on an unprecedented scale.

The report acknowledges that most memecoins lack real utility, often serving as speculative assets. However, the volatility of memecoins attracts users, driving the adoption of blockchains as a canvas for cultural and emotional expression. The report provides an in-depth analysis of the on-chain activity and value driven by memecoins, highlighting Solana as the primary blockchain for memecoins in 2024, with a significant increase in token launches and swap volume. The report also explores the secondary activities generated by memecoins, such as the integration of $BONK into the Solana ecosystem, suggesting that memecoins can serve as liquidity for new application plumbing, potentially leading to the development of durable blockchain adoption in the future.

In a recent Forbes report, Sandy Carter, COO of Unstoppable Domains, highlights the unique position of meme coins in the cryptocurrency market. Initially gaining attention through internet jokes, meme coins like Dogecoin have shown remarkable resilience and significant market performance, with top tokens yielding returns of over 1,300% in 2024. The report attributes meme coin success to speculation and celebrity endorsements, like Elon Musk’s support for Dogecoin. However, the real value lies in their utility, as seen with Shiba Inu (SHIB), which partnered with (link unavailable) to enhance identity, security, and risk management through fully homomorphic encryption, setting new standards in both the crypto and traditional financial industries.