Memecoins , cryptocurrencies that have become popular due to their humor and cultural appeal, are a controversial topic in the crypto community. Are they here to stay or are they just a short-lived fad?
Memecoin Will Be Here for the Long Term, But Is Utility the Future?
At the Emergence conference discussing the current state of memecoin , 6th Man Ventures founder Mike Dudas asserted:
“Memes have been around since the beginning of man, carved into caves.”
Experts attending the conference agreed that memecoins are unlikely to disappear from the crypto market anytime soon. However, they had different views on a number of issues such as whether memecoins should market their utility, which ecosystems are capable of challenging the dominance of Pump.fun and Solana, and how to evaluate the long-term success of memecoins.
Chris Newhouse, Director of Research at Cumberland Labs, shares: “
The addition of utility to memes and the ability to generate revenue from memecoins will be factors that cannot be ruled out. It is a combination of profit generation and humor.”
However, Genia Mikhalchenko, head of business development at Douro Labs, counters:
“I think the utility aspect is a pretty pessimistic view. If you look at how people interact with memecoin and the target audience it’s aimed at, you’ll see that they don’t care about discounted cash flow models or the long-term value of the token. They’re just buying a picture of a hippo or a frog.”
Mikhalchenko acknowledges some exceptions that have successfully added utility, such as BONK , which uses platform protocols to grow the token’s meme value.
When I talk to founders, I often ask an interesting question: When we issue a token, will it be traded on its fundamental value or on its meme value? The answer I expect is usually: Initially, the market leadership will be heavily influenced by the meme value, but then we will leverage the growth momentum over the next several years to build a sustainable utility value,” Dudas shared.
Conversely, researcher Nicolai Søndergaard from Nansen points out that not every meme can create a successful memecoin.
“For something to be popular, especially in the long term, it has to be adaptable. A meme is something that can be shared, changed, and retold through images or sounds – that’s the ultimate deciding factor.”
Will Pump.fun and Solana be dethroned ?
Next, the discussion posed the question: Which blockchain network will dominate the memecoin space in the future? Chris Newhouse highlighted Base ‘s potential to challenge Solana’s dominance in the memecoin market.
“I believe Base will be an interesting competitor to Solana. In terms of memecoins and market cap, Base Network will become a real competitor to Solana.”
Newhouse believes that Base’s AI-driven token development tools are key to driving memecoin’s growth on layer 2.
“Base is where a lot of the next wealth effects, especially those driven by AI, converge. It’s a very interesting story right now.”
A recent report from K33 Research points to AI-driven token creation tools such as Clanker and the seamless integration of layer 2 solutions into Coinbase’s infrastructure as key factors contributing to the success of the Base network. This combination not only improves performance but also expands accessibility to users, creating an environment conducive to growth and innovation in the cryptocurrency space.
“Clanker, an AI-driven token deployment tool, is leading the activity on Base and generating significant revenue, driving user engagement, similar to Pump.fun’s success on Solana,” said analysts at K33 Research.
The report also added that, as a competitor to Pump.fun, Clanker allows users to come up with memecoin ideas, while the AI engine handles the entire token creation process seamlessly.
“This concept has helped to significantly increase the transaction fees generated.”
However, Mike Dudas stressed that Base still faces many barriers.
“Base doesn’t have enough tokens yet and you need to have a strong token ecosystem. However, I think Base will eventually become a competitive chain.”
This view is consistent with data showing that Solana accounted for about 348,000 new tokens out of the roughly 375,000 tokens launched across all tracked chains in November — more than 92% of the total. Such numbers underscore Solana’s dominance as the platform favored by token creators (including memecoins).
Base’s Total Value Locked (TVL) growth over the past month has been remarkable. According to data from DefiLlama, Base’s TVL has skyrocketed to $3.89 billion. Data from K33 Research shows that while Base has attracted funds from other layer 2 networks such as Polygon and Blast, Solana has maintained positive net inflows. Solana has seen significant inflows over the past month, with a 30-day TVL increase of over 60% to $9.32 billion.
This article is for informational purposes only and is not investment advice. Investors should conduct careful and thorough research before making any investment decisions. Please note that we are not responsible for any investment decisions you make.
