As far as I can see, all memes go through this lifecycle:
- Meme is born. Almost nobody understands it, and it's barely funny even when you do.
- Meme gets adopted by a specific social group. Meme now serves as a shibboleth indicating membership of the group, and encourages feelings of belonging and "insidership" whenever it's encountered. At this stage, the meme is usually either utterly baffling or hilarious, depending on whether or not you're an insider in that social group.
- Meme becomes mainstream - everyone is using it at every opportunity, and - its use as a shibboleth negated - it gradually gets stale from overuse. Meme is hilarious to newcomers, but increasingly sterile and boring to older users.
- Meme effectively dies - people using it are generally downmodded or castigated for trying for "easy" posts. Importantly, it can still be funny even at this stage if it's used particularly well... however, 99% of the uses at this point are people trying to cash in on easy karma - the kind of people who tell the same jokes for years without realising that the 17th time you hear it, it's no longer funny.
- Meme is effectively dead, but may experience rare and infrequent resurrection in particularly deserving cases. Generally these uses get applauded, because nobody wants to risk approbation for posting stale memes unless they're really sure this is a perfect opportunity for it - one that's literally too good to miss.
Importantly, by stage 5 the meme starts once again to be funny, because it's once again serving as a shibboleth... though this time instead of showing how advanced and up-to-date the poster is, it instead serves to indicate his membership in the "old guard" of whatever social group it's posted to - "I've been around here so long I remember when this was funny", it quietly indicates to other old-timers and well-educated newbies alike.