‘Memecoin Supercycle’ Means Best Tokens Are Cults, Says Analyst: Do Dogecoin And Shiba Inu Fit The Bill?
By Benzinga
Crypto analyst Murad Mahmudov predicts a “meme coin super cycle” that could reshape the cryptocurrency landscape in the coming years.
What Happened: In a recent podcast, Mahmudov shared his unconventional thesis on why meme coins are poised to outperform traditional crypto assets. He argues that the crypto industry is primarily “an asset production industry and a speculation industry” rather than a technology-first sector.
The analyst believes that meme coins are not just a passing trend but represent a fundamental shift in how retail investors engage with crypto. He states, “I am a community maximalist,” emphasizing the importance of strong, passionate communities in driving token value.
Mahmudov introduces the concept of “cults” in crypto, defining them as “really really strong communities.” He explains, “If you don’t make poor people rich or if you don’t make middle class people richer, you don’t have a community.”
Mahmudov says that Defi can exist whether a token is attached to it or not but the “best products in crypto require a token but the best token in crypto does not require a product. He cited examples like Pump.fun, Polymarket do not have a token but best performers like Pepe (CRYPTO: PEPE), Dogwifhat (CRYPTO: WIF), Popcat (CRYPTO: POPCAT) do not have a product.
Why It Matters: Mahmudov points out that “every single listing on Binance” this year is down except for two, both related to meme coins. Binance listed around 50 crypto coins this year, but only two are trading higher. One of which is Dogwifhat and other is Jupiter (CRYPTO: JUP) which uses meme coin infrastructure.
Mahmudov also revealed that out of the 9-10 altcoins he was holding, he had a small bag of Dogecoin (CRYPTO: DOGE) in 2017 which he sold in 2018. Then again, he traded DOGE in 2021, when it was a super spike season for dog coins. However, from early 2024, he started to make sense of meme coins like from what are first principles rather than looking only at trading momentum.
Looking ahead, Mahmudov predicts a transition “from jokes to serious memes” and the emergence of “movement coins” that represent abstract concepts and philosophies. He states, “We’re going to see meme coins representing everything.”
Despite his bullish outlook on meme coins, Mahmudov warns that “99% of people in the meme coin industry are scammers” and advises investors to seek out projects with organic, decentralized communities.
What’s Next: The influence of meme coins is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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Image: Shutterstock
