Everybody in crypto seems to be waiting for the bull run to start. There are currently three sectors that share the spotlight, AI, memecoins, and RWA. Although I’m not the biggest of memecoins myself, they do have momentum. You can’t deny that.
So, whether you like them or not, I’m going to look into memecoin research methods. Right now, memecoins are the most likely option to get a 100x or more. I’m going to look at how you know if a memecoin is good, how to find memecoin gems, and how to find them early.
Table of Contents
How to Understand if a Memecoin Is Good?
One of the reasons I’m not a memecoin fan is that they do not have any utility. They also don’t add any value to the crypto sector. Let alone that they solve any problems. Scams and memecoins also seem to have a way too healthy relationship.
So, a word of advice to you. Memecoins are very risky, so do experiment with small amounts of capital first. Most certainly if you’re new to this.
Nonetheless, it begs the question, why are they so popular? Here are some reasons, for instance,
- They are community led. It seems that people are very much fed up with VCs dumping their utility coins on them.
- Trading costs for memecoins are near to nothing. For example, look at low-cost Layer 1 and Layer 2 chains like Solana, Sui, or Arbitrum respectively.
- Memes have good audience engagement. For example, celebrities endorsing specific memes. As a result, it pushes the memecoins to greater popularity heights.
D.O.G.E will fix it 🪓
— Elon Musk (@elonmusk) October 15, 2024
This sheds a bit of light on why memecoins are so popular. So, this leads me to the next question. How do you know which memecoins are good or bad, or, let alone, outright scams? Here are some easy steps to follow to find memecoin gems.
Step 1 — Strong Community and Cult
Having a strong community and cult improves a memecoin’s survival chances. For example, look out for,
- Large and active communities on X, Telegram, and Discord.
- The project should also be active in the comments section. It should also engage with the community.
- There should be a unique identity around a meme (e.g., Frog for $PEPE, Doge for $DOGE, or the Fish for $BLUB on Sui).
Source: $BLUB
Step 2 — Token Distribution
A very good tool to check token distribution is Bubblemaps. Add the project’s name and its chain, and off you go. Now it shows you the token distribution. You want to look for an even distribution. The map is dark and bubbles don’t connect. On the other hand, a colored map, that’s clustered and large, means that few actors hold most coins. This indicates that a dump is likely.
Source: Bubblemap
Step 3 — Token Holders
Good projects see an increase in holders over time. You can use block explorers for this. For instance, Etherscan to see $PEPE holders.
Step 4 — Volume and Liquidity
A solid meme has both high volume and liquidity. Especially for memes with a market cap of $100 million or higher. The volume should be over 8%-10% of the market cap. On the other hand, its liquidity should be over 2%-4% of the market cap. DEX Screener is a good tool for finding this information.
Step 5 — Past History
Memecoins can have strong volatility. Dumps of up to 80% are possible. If a meme survives such a dump, they can do well. However, there are a few things to look out for. Without these, they may not survive.
- The large holders are not selling.
- Its community remains supportive.
- Holder counts continue to increase.
Tricks to Find Memecoin Gems
I did mention DEX Screener already. Well, now it’s time to take a closer look at this tool. It’s a must-have tool for memecoin hunters.
It also lists many coins that are new and serve the main L1 and L2 chains. After all, that’s where they create most of these coins.
So, here are some important metrics for DEX Screener. You can find the following info on the main page.
- Liquidity
- FDV (Fully Diluted Valuation)
- Pair Age
- Volume
- Transactions
Source: DEX Screener
Be aware that you can toggle the time ranges. There are the 5 min/1H/6H/24H tabs to view transactions and volume data.
The next step is to filter out info, so you can find hidden gems. Here are some criteria you want to look out for.
- Very Degen:
Liquidity: $10K
Minimum FDV: $100K
Pair Age: 0–48 hours
1H Transactions: 30
- Degen:
Liquidity: $15K
Minimum FDV: $100K
Pair Age: 1-72 hours
1H Transactions: 100
- Mid-Caps:
Liquidity: $100K
Minimum FDV: $1M
24H Volume: $1.2M
24H Transactions: 30
- Old Mid-Caps:
Liquidity: $100K
Minimum FDV: $200K-$100M
Pair Age: 720-2800 hours
24H Volume: $200K
24H Transactions: 2000
- Larger Mid-Caps:
Liquidity: $200K
Minimum Market Cap: $1M
6H Volume: $150K
Now, having mentioned this, DEX Screener is not the one and only memecoin hunting tool. There’s more to look out for.
- See if you can find information on fundamentals. They’re always essential, also in this sector.
- Number of fresh wallets (for new memecoins)
- Amount of smart money that is accumulating said memecoins
- Wallet tracking activity
Murad Mahmudov went ALL IN on memecoins last year
Turned a wild bet into $30M
Every play he touched went 100x
Now he’s loading up on a NEW round of COINS
Here’s his story — and his top plays for 2025🧵👇 pic.twitter.com/cZurYqjlHZ
— Pepesso (@0xPepesso) October 27, 2024
How to Identify Memecoins Early
Memecoins are truly high risk with high rewards. They can potentially turn $100 into $1 million in only a few days’ time. Which current investment vehicle can say the same? Now, this brings my back to an old saying, be early!
So, how can you identify the most recent launches? Once more, we turn to our top memecoin hunter’s tool — DEX Screener. Now, click on the left side category of ‘New Pairs’. To find the newest tokens, toggle the ‘Last 24 hours’ button.
You can also use the ‘Trending’, ‘Top’, or ‘Gainers’ tabs. However, to cater to your risk appetite, you will need to put the filters in place that I just mentioned.
Another concern is to see if a meme is safe. For this, there are two good tools,
- Token Sniffer and
- RugCheck, which is for Solana tokens.
Be aware that passing this check is not the only criteria! Check the fundamentals and all other tips that I gave you and mentioned. So, all the information here should reduce the risk of getting involved with a scam token. Happy hunting!
So, what’s your take on memecoins? Do you have them in your portfolio? If so, which ones and why do you like them.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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