Memecoin Mania: The Unlikely Hero of the Crypto World
The Rise of Memecoins in a Challenging Crypto Year
While the broader crypto market has faced a rough patch, one surprising area has defied the chances: memecoins. A study by Storible in collaboration with NFTevening reveals that in 2025, memecoins are the one segment showing gains, boasting a powerful average profit of 33.08%. Even as Bitcoin struggles and the DeFi space retracts, meme tokens have surged in each popularity and profitability.
What’s Fueling the Frenzy?
This 12 months alone has seen the launch of over 5.9 million latest memecoins—a jaw-dropping tenfold increase from 2024. A big chunk of this activity is driven by Pump.fun, a Solana-based platform that allows users to create a meme token in mere minutes. January alone witnessed the creation of 1.7 million tokens on this platform.
Understanding the Memecoin Phenomenon
“Memecoins behave more like cultural flashpoints than serious financial tools,” notes Luyanda Ndlovu, a DeFi analyst from Cape Town. “They’re quick, entertaining, and incredibly volatile—qualities that make them risky, especially for novices.”
The Nature of Memecoins
Unlike DeFi projects or NFTs, memecoins aren’t crafted for lasting value. They thrive on trends and sometimes enjoy a short-lived existence. The study highlighted that while memecoins brought substantial average returns, only 18.82% of them ended up profitable. This figure, while higher than AI tokens or Layer 2 solutions, still represents a minority.
The Gamble of Memecoins
“Most tokens don’t survive a day,” remarks Chris Nguyen, a researcher at Storible. “It’s akin to a lottery where the odds favor the house.”
The Dark Side: Scams and Schemes
Pump-and-dump schemes are rampant, as are rug pulls—where developers promote a token and disappear once the value peaks. The low entry barrier has fostered an attention economy where virality outweighs substance.
South Africa’s Growing Interest
In South Africa, memecoins are catching the attention, particularly amongst Gen Z investors energetic on platforms like X and Telegram. However, with minimal consumer protections, high volatility, and deceptive promotions, regulatory bodies just like the FSCA and SARB have issued several warnings.
The Importance of Due Diligence
“South Africans are diving in, but many lack the tools to spot scams,” warns Ndlovu. “Being thorough in research is essential.”
The Reality of the Boom
Despite the risks, the memecoin surge is undeniable. The sector’s total market value now ranges between $60–75 billion, driven more by community excitement than practical use.
Hype vs. Value
“It’s not that memecoins are inherently bad,” Ndlovu adds. “But when they’re the sole profitable sector, it reveals a market driven by hype, not intrinsic value.”
For South African investors, the takeaway is evident: while the profits are tangible, so are the risks.
Read the Full Study
For more details, try the total study here: NFTevening Study on Memecoins
Image Credit: ventureburn.com
