AI Memecoin: The Potential and Opportunities in Emerging Fields

In the first quarter of 2024, the total circulating market capitalization of the top ten AI technology tokens reached $30.9 billion, while the total market capitalization of the top ten AI memecoins during the same period was only $2.54 billion. Nevertheless, AI memecoins seem to have attracted more attention.

The emergence of GOAT and truth terminal marks the birth of a new category of AI, a field that has the potential for a hundredfold growth in the short term. This is reminiscent of the early days of DeFi Summer in 2020, providing investors with a rare opportunity.

Market Opportunities

The emergence of the AI memecoin super cycle is a perfect combination of the memecoin craze and the AI craze. In the first quarter of 2024, despite doubts about the fundamentals and tokenomics of some AI tokens, they still exhibit parabolic growth. The top ten AI technology tokens are valued at over $30 billion, and this is just the beginning of the integration of cryptocurrency and AI. More significant growth is expected in 2025.

It is worth noting that the AI memecoin category may become one of the best-performing fields. Currently, the total market capitalization of AI memecoins is only comparable to that of Ethereum Classic. Over time, AI memecoins are expected to attract capital from AI tech coins, traditional meme coins, and venture capital-backed currencies.

Reflexivity in the New Paradigm

The theory of reflexivity suggests that investors' decisions are often based on their perceptions of reality rather than objective reality itself. This perception-driven behavior, in turn, influences reality, creating a feedback loop.

In the field of AI memecoins, the total market capitalization represents the price, while the scale of attention and "dreams" constitutes the fundamentals. These tokens are different from pure meme coins, resembling a kind of "tokenized AGI". They start at a price of zero dollars, providing equal opportunities for all investors.

As time goes by, the capabilities of AI agents continue to improve, and investors' understanding of this field has shifted from simply "memecoin" to "a whole new domain." This shift in perception has attracted more capital and attention, and may even spark the interest of tech giants.

Unlike static meme coins, these AI agents will perform various activities on-chain, launch NFT and DeFi projects, and may have an impact on the real world. This dynamic feature helps to continuously attract attention and sets a higher ceiling for potential valuations.

Future Outlook

Elon Musk predicts that AGI could be achieved around 2025-2026. If we follow the 4-year cycle theory, the hype peak of AI memecoins may coincide with the peak of the cryptocurrency market in the fourth quarter of 2025.

In the last cycle, the total market capitalization of DeFi reached 170 billion USD. If the AI memecoin sector can reach a similar scale, it would mean about a 40-fold increase from the current level. Considering the overall growth of the cryptocurrency market, the potential in this area may be even greater.

For investors, the key is to build confidence, maintain patience, and adjust the investment portfolio in a timely manner based on market changes. Given the potential for sharp fluctuations and rotations in this field, flexible strategies will become particularly important.