TRUMP’S CAUSE – WE CANNOT IGNORE MEMECOINS ANY LONGER.

Comment by: Charles Wayne, co-founder of Galxe

Looking at the current state of the financial market, one can quote Camus, “The realization that life is futile is the beginning, not the end.” This sentiment applies perfectly to the realm of memecoins.

Memecoins means business.

This could not be more true given the launch of the official memecoin, TRUMP, which has gained more than $12 billion in market capitalization in one weekend as US President Donald Trump descends. Also, Melania, his wife's memecoin, which, along with TRUMP, has broken Solana's blockchain as of this writing. There is no doubt that memecoins now mean business. Nevertheless, memecoins are often derided in the traditional financial world, which is hard to wrap its head around Dogecoin's $56 billion market cap, which surpasses Volkswagen's market cap of $48 billion. Volkswagen has been around for 86 years.

Indeed, by any traditional measure, it makes no sense that a dog-focused cryptocurrency is worth more than a nearly century-old car manufacturer that sells millions of cars worldwide each year. One creates real tangible benefits, while the other provides nothing more than entertainment value.

Doge is far from such an example. Indeed, thanks to TRUMP's launch, memecoin's total market cap has surpassed $126 billion, outpacing countless traditional businesses and only $2 billion away from the decentralized financial sector.

Financial nihilism meets accessibility.

Trying to evaluate them based on traditional financial parameters is the wrong way to look at memecoins, because there are countless trends that make memecoins emerge as an investment category.

Latest: The official Trump memecoin holds the crypto market trading as Bitcoin prepares for new highs

These trends include financial nihilism, which Travis Kling says is emerging among younger generations who realize that traditional paths to wealth creation and economic stability — usually buying a home — are out of reach.

If you have nothing to lose and everything to gain, investing in memecoins with high returns without high costs is not considered a big risk.

This contrasts with the existing crypto project model of offering quick and highly profitable exits to venture capitalists rather than allowing the public to buy at a fair price.

Memes provide an outlet for this dynamic and for many feel like a return to the ideals of community on which the crypto industry is built. Observing this pattern prompted popular crypto personality Murad to suggest that we are in a memecoin “supercycle”.

Beyond these fundamental strengths, the appeal of memecoins is enhanced by ease of access and cultural relevance. Over the past year, memecoins have become more accessible, with multiple blockchains and ecosystems offering a user experience comparable to centralized exchanges without the tedious authentication.

Social issues in mem

Furthermore, memecoins have also found their way into pop culture – exemplified by the overnight success of TRUMP. At the same time, even the latest Netflix smash Squid Games features a failed meme-coiner. And of course, the richest man in the world – Elon Musk, is a fan of DOGE.

Their low price adds to the appeal of memecoins, as the possibility of a coin reaching $1 is a powerful psychological driver for those looking for life-changing returns.

Memes are not the only ways to gamble with animal-themed internet coins. As Murad argues, coins like the DOGE also tapped into a deep human need for community and belonging. Still, nothing exemplifies this more than the success of TRUMP, with millions of people backing the flip side of the coin in a social and political context that looks like a collective middle finger to the opposition.

Indeed, with the World Health Organization recognizing loneliness as a global health concern, it may come as no surprise that more people are looking for ways to connect online and connect with memes like TRUMP. As GenZ likes to say iykyk (if you know, you know).

From bear to blockchain

Memes are attracting developers to build projects around them. For example, BeChain started life as a bear-themed memecoin and is now a DeFi-optimized blockchain ecosystem that features a new Proof-of-Liquidity operation.

While still in the testnet, Berachain provides the perfect playground for other projects to test their products, including anything from new AI agents to revenue projects.

Once this chain is launched and all these products go live on the main network, the claim that memes have no utility can be disproved. If nothing else, it shows that memes, which sit at the intersection of tech, community and entertainment, provide the perfect space for creativity.

They are also where you can make a lot of money. For example, TRUMP increased Donald Trump's net worth by almost 50% overnight, with one lucky early adopter reportedly making $20 million in early purchases.

While it's easy to dismiss Memecoins as a silly joke, it's important to remember that trading institutions are now running multi-billion dollar BTC strategies despite once dismissing Bitcoin as nothing more than magical internet money.

Meanwhile, governments around the world are implementing Bitcoin as a reserve currency. Doge started out as a one-night stand as a joke. Now, it's worth more than one of the world's largest auto manufacturers, and TRUMP looks set to redefine memecoins as we know them.

Nihilism, accessibility, and community are the three trends that will push memecoins to become a more serious investment category this year, while technical progress proves that they are evolving beyond entertainment. As commemoratives evolve into community-driven products, the coins behind them will increasingly transition from trinkets to portfolio staples, and TRUMP is just the beginning.

Charles Wayne is the co-founder of Galax. Before working on Gaxen, he directed Charles Deliv. Charles holds a Bachelor of Science from the University of California, Berkeley.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.