Solana Meme Coin Market Analysis

Source: DODO Research

This week, the cryptocurrency market continued to be sluggish, and the prices of most tokens continued to fall. Even the newly issued coins of the two major projects, ZK Sync and LayerZero, could not escape the fate of falling. The biggest opportunity and hot spot in the market is still Memecoin, and Solana Memecoin is even crazier. Low transaction costs and the emergence of Pump.fun have lowered the threshold for issuing coins, making Solana the most active casino on the chain. According to the data report of node service provider syndica, up to 92% of the transactions on Raydium, the number one DEX on the Solana chain, are currently from Memecoin.

This week's Cryptosnap Dr.DODO will take you to understand several types of Memecoin based on several famous Memecoins in this round of bull market.

Source: https://blog.syndica.io/deep-dive-solana-defi-may-2024/

Market Maker Coins

BOME/ SLERF/ MEW/ MANEKI …

The author classifies all kinds of coins in large pools into banker coins. The characteristics are that the pool is large and the market is pulled very quickly. It is also the target with the greatest chance of getting rich overnight. The position capacity that can be invested is not only large but also high in multiples. However, at the same time, it is often difficult for people to enter the market with a high market value all of a sudden. There are several points to note when participating in this type of project:

• Project Background: Taking BOME as an example, the founder Darkfarms is a well-known artist in the currency circle, and the possibility of Rug Pull is not high.
  

• Whether the liquidity pool is locked/burned: In addition to being a dealer's plate, the large pool is also likely to be a scam plate that completely empties the pool in one wave. Taking SLERF as an example, the project party burned tens of millions of liquidity pools, which is also the reason for such Fomo in the early stage.

• Trading volume:The trading volume represents the specific data display of the market sentiment for this project, and the project's popularity can be judged in conjunction with the trading volume.

• Market sentiment:The market sentiment here refers to the overall market trend, which is used to judge the potential high point of the project.

The author believes that this type of dealer coin pulls fast but usually only has one wave of market conditions. The subsequent trend is often different from the investment logic of Memecoin's small funds and large multiples. Because of the large pool, the return on small funds is not good and it is not recommended to participate again.

Hot Current Events Coins

GME/ BODEN/ TREMP/ DJT/ NCAT …

Hot current events, such as Musk, Trump, or Roaring Kitty, can often find corresponding meme coins on the chain, but at the same time, this type of meme coin will also cause price fluctuations due to various news, so tracking news and making corresponding transactions is the most important thing to participate in this type of meme coin. For example, the most popular DJT Trump coin on the chain this week attracted many people to speculate due to rumors that Trump's youngest son Barron Trump was involved in it and the large pool attracted many people to speculate, but it also caused a sharp drop due to the news that famous CTs such as Zach XBT and GCR revealed its insider information; similarly, $GME caused crazy speculation due to Roaring Kitty's return post, but soon after, it plummeted because Roaring Kitty's live video was meaningless.

Community Coins

POPCAT/ MICHI/ SC

The author believes that this type of cat and dog community tokens are the type of memes with the highest odds but also the highest failure rate. The highest odds are because this type of token often has a long enough bottom time to accumulate cheap chips, but at the same time, it is easy to fail because the scarcity is not high enough. Whether the token avatar is eye-catching is the first point, but more importantly, the community atmosphere. The most important point to participate in this type of project is to join the community to observe whether there are enough enthusiastic community members who actively participate in the promotion. At the same time, it is also necessary to observe whether the volume of the token on Twitter has decreased or stagnated to make trading judgments.

In addition, the author believes that community-type meme coins will slowly gather retail consensus in a good market environment, driving the price to rise slowly, but when the market environment is not good, the decline will be the fastest due to factors such as holding many chips and dispersion.

Celebrity Coins

MOTHER / RNT / PAJAMES

Celebrity coins are a trend that has emerged on the SOL chain in recent weeks, but most celebrities have no intention of operating tokens for a long time. Many of them are so-called one-time flows. However, if celebrities with huge traffic outside the circle are willing to operate, the tokens have great potential. At present, the most successful celebrity coin is $MOTHER. Rapper Iggy Azalea promoted her own tokens with millions of fans, and actively interacted with CT in the circle and communicated with community members, which is why the popularity has continued for so long. For the author, whether to participate in celebrity coins should not be rushed, but it is necessary to observe for a few days to determine whether the celebrity is willing to operate for a long time before joining the way with a higher winning rate.

Others

WEN/ BONK/ WIF …

In addition to the above, there are of course many types of hot meme coins, such as $WEN launched by the Jupiter team or $Bonk, which is rumored to be launched by the Solana Foundation to revitalize Solana. They have reached such a high market value because of the participation of the formal team behind them. $Bonk was born in a period when everything was in ruins, so its starting point was low and the multiple was high, but $WEN was born in the hot Solana Fomo period and had reached full expectations before it went online, so the multiple was not high; in addition, $WIF, which has the largest market value among Solana Memecoins and is also the weather vane of Solana Memecoin, is the most difficult meme coin to classify. It was born as a community coin but was favored by capital in the later period, so it jumped up and became the strongest target of Memecoin in this round of bull market.

Author's opinion

Given that the Solana Memecoin market is experiencing an avalanche period, the author does not recommend participating in any transactions now. Instead, it is a good stage to identify projects, especially community coins and celebrity coins. You can carefully go deep into the community to observe whether the community consensus is still firm under the downward trend. For celebrity coins, you can observe whether the leading celebrities can continue to invest in this token.  

The author believes that Memecoin is not suitable for left-side trading, that is, ambush and bottom-fishing. Memecoin does not have the so-called fundamental value to maintain the bottom price, but is more of an attention economy. When the price rises, it can attract more attention. A more appropriate way is to select targets with good foundations and add them to the watch list and wait for the wind to pick up.