Meme Coins Could Evolve Into a $550 Billion Industry: When and How?

The meme coin market has long been viewed as speculative and volatile, with many considering it a passing trend. However, Ki Young Ju, the CEO of the crypto analytics firm CryptoQuant, challenges this conventional thinking.

In a January 26 post on X, Ki Young Ju, CEO of CryptoQuant, drew an intriguing parallel between the meme coin market and the art world. He argued that both industries derive their value from the stories and narratives surrounding them.

The Power of Narrative in Meme Cryptos

Ju’s argument centers around the concept of narrative-driven value. In both the art world and the meme coin market, value is often determined not by intrinsic worth, but by the stories and communities that back them.

He pointed out that the meme coin sector is currently valued at over $88 billion, a sum that reflects the market’s influence despite its criticism. Meanwhile, as per a recent research, the art market, which also relies on narratives, is valued at roughly $550 billion.

By drawing this parallel, Ju suggests that meme coins could eventually follow a similar trajectory to that of the art market. The art world, despite its challenges and criticisms, has managed to thrive, largely due to the stories and cultural significance that shape its value.

Meme coins, according to Ju, could evolve in the same way if they continue to foster narratives that resonate with communities.

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Issues in Meme Cryptos

Acknowledging the current problems in the meme coin space, Ju doesn’t shy away from the sector’s challenges. Issues like rug pulls, pump-and-dump schemes, and speculative trading have plagued meme cryptos, earning them a reputation as risky investments.

However, Ju believes that these problems are not necessarily fatal to the market’s future. He compares the current state of meme cryptos to Bitcoin’s early days. Back then BTC was considered as a speculative asset linked to illegal activities.

Ju argues that, just as Bitcoin overcame its early obstacles and grew into a globally recognized asset. The meme coin market has the potential to mature as well.

He believes that, over time, industry issues such as fraud and volatility will be addressed. As the market matures, he envisions a more stable and trustworthy environment for meme coin investments.

He predicts that, much like the broader crypto market, the meme crypto sector will go through phases of heightened expectations. As well as, disillusionment before reaching a more stable equilibrium.

According to Ju, the market is nearing the peak of inflated expectations. It will soon give way to a period of adjustment, or what he refers to as the “trough of disillusionment.” After this, he anticipates a gradual maturation of the meme coin market, potentially transforming it into a more mainstream and established sector.

Growing Interest in Meme Coins

New meme cryptos are created daily, with some even gaining significant attention from celebrities, influencers, and government figures.

As reported by The Coin Republic, days before his presidential inauguration, Donald Trump launched the Official TRUMP coin on the Solana network. While other TRUMP tokens had emerged to capitalize on election hype, none garnered as much attention as this one, primarily due to Trump’s endorsement as the official TRUMP meme crypto.

The coin quickly gained traction on X, becoming a top trend, and saw significant market demand, delivering impressive performance. The meme crypto rose ranks to become the second largest meme coin after only Dogecoin. However, the hype has now died and the coin has declined sharply.