In the fast-paced world of cryptocurrency, especially with meme coins, you've probably noticed how a catchy story can send a token's price to the moon faster than any solid tech upgrade. But why is that? A recent thread on X by Mert, CEO of Helius Labs, breaks it down using physics and biology analogies, and it's a must-read for anyone in the meme token space.

Mert argues that it's not about people being dumber or greedier—it's about how humans naturally think in stories. Narratives are simple and spread quickly, especially in our hyper-connected world. Let's dive into his insights and see how they apply to meme coins.

The Core Idea: Narratives as Viruses

Mert starts by explaining:

the reason narrative dominates fundamentals is not that people are dumber or suddenly greedier

it's physics

humans think in stories

narratives are easier to understand, and fundamentals require time to analyse

if narratives are easier to understand, then they spread faster

if they spread faster, then they infect more people

if the internet connects more people than ever before, then the rate of infection increases exponentially

and if enough people are infected, it ends up shaping reality

and if crypto increases the connectivity between money and information, then narratives affect markets even more than before

so it has nothing to do with people being dumber or more greedy or wanting to escape some permanent underclass

it's just a natural consequence of the world being more connected now via the internet and crypto than ever before

I have 100% conviction that connectivity is the most important concept that no one is really talking about

Here, "narratives" refer to the stories or hype around a crypto project—like a meme coin based on a popular internet joke or celebrity endorsement. "Fundamentals" are the underlying tech, like smart contract security or real-world utility.

In meme tokens, think of Dogecoin's rise fueled by Elon Musk's tweets or Shiba Inu's "Dogecoin killer" story. These narratives spread virally on social media, drawing in crowds before anyone checks the code.

Fundamentals Still Matter—In the Long Run

Mert follows up with a crucial clarification:

IMPORTANT: this does not imply that fundamentals don't matter!

I'm just describing the physics of the situation

as you click the "Play" button and let time go by, eventually, people start developing antibodies to the narrative, just like a bacterial infection, and shed themselves free from it

but a virus/narrative that is rooted in fundamentals will have higher retention and will endure over time

put differently: pure narrative will spread much faster in the shorter term, but a narrative rooted in fundamentals that can not be shed (like a biological virus instead of a bacterial one) will spread farther in the long term

this is why fundamentals matter long term and why people say things like "In the short run, the market is a voting machine but in the long run, it is a weighing machine

This is gold for meme coin enthusiasts. Pure hype tokens might pump hard but often dump when the story fades. But if a meme coin builds on strong fundamentals—like community governance or integrations with DeFi protocols—it can stick around. For example, some Solana-based memes are evolving into ecosystems with real utility, blending narrative with substance.

Community Reactions and Examples

The thread sparked reactions, with folks chiming in. One user highlighted SolBox, a decentralized storage project on Solana, as having a "great easy narrative." Another shared a fun image from Claynosaurz, emphasizing "we got stories."

Even Mert replied to a skeptic with a meme about online debates, showing how narratives can lead to heated discussions.

These replies underscore how projects leverage narratives. In the meme token world, a good story can attract developers, investors, and users quickly.

Implications for Meme Token Investors

So, what does this mean for you? In a connected crypto landscape, spot narratives early but dig into fundamentals for long-term holds. Use tools like DexScreener to check liquidity and Solana Explorer for on-chain activity.

Remember, connectivity via platforms like X amplifies everything. A single tweet can start a narrative cascade, especially in meme coins where community is king.

Check out the original thread on X for more context and join the conversation. At Meme Insider, we're all about decoding these dynamics to help you navigate the wild world of meme tokens. Stay connected!