Beyond the laughs: Meme coins like Dogecoin and Shiba Inu are a surprising force in the crypto world. But are these internet jokes real investments, or just risky bets fueled by Elon Musk's tweets?
"It's the currency of the future, an unstoppable financial instrument that will take over the world," that's how Elon Musk explained the essence of the meme cryptocurrency Dogecoin three years ago.
If we go back to 2021, the period known as the "Year of the Dog" and a time of sharp price increases and market capitalization for meme cryptocurrencies like Dogecoin and Shiba Inu, it's unlikely that anyone will have questions about Musk's comment.
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At that time, investments in the meme cryptocurrency duo reached their peak, with token prices increasing by over 60 million percent compared to the previous year. Playful dog-themed cryptocurrencies gained public recognition, particularly from Elon Musk and Mark Cuban, the owner of the Dallas Mavericks basketball team and Landmark Theatres. By 2022, Doge had become one of the most sought-after and popular cryptocurrencies.
However, unlike other cryptocurrencies like BTC, meme tokens do not have any inherent utility - they do not solve the problems of centralization or enable peer-to-peer (P2P) payments. Moreover, they are often not backed by anything, so the price of such coins depends solely on hype.
Nevertheless, there are currently over 300 meme tokens in existence. Their market capitalization reaches approximately $20 billion daily, with a trading volume of $500 million.
While the world is experiencing political tension, inflation, economic restrictions, and rising bank rates, investors and traders are actively turning to cryptocurrency, including meme coins. According to experts, interest in unconventional coins rises against the backdrop of lulls or stagnation in trading "serious" cryptocurrencies like Bitcoin.
n addition, many newcomers and inexperienced investors gravitate towards familiar images. The meme coin sector offers plenty of them – popular dog breeds, Pepe the Frog, and Pikachu. Intuitive choices guide the selection of such meme cryptocurrencies, with "funny meme dogs" becoming a significant reason for choosing these digital assets.
Meme coins themselves are cryptocurrencies inspired by jokes, memes, and familiar internet imagery. Although they lack intrinsic value, they operate on the principles of other digital assets, utilizing blockchain technology and hashing algorithms. Some of them, like Dogecoin, can even be mined. We have previously provided more detailed information about them.
However, they firmly established themselves in the market primarily due to the active support of celebrities, influential investors, and opinion leaders, whose actions played a significant role in the price growth of meme coins. For example, at the beginning of 2021, American media mogul and co-founder of Meta* Mark Zuckerberg posted an image on social media with the caption, "My goats: Max and Bitcoin." The meme coin AquaGoat saw its price increase by 300% in just a few hours.
Note: *Meta is the new name for Facebook's parent company, formerly known as Facebook, Inc.
Meme cryptocurrencies, for the most part, do not have any inherent purpose unlike other cryptocurrencies, and they primarily serve as a means of payment and speculation in the market (buy low, sell high).
In general, the public perceives these coins as a joke and a relief from complex financial processes, without placing significant expectations on them. It is challenging because the price of these coins is unpredictable—they can experience sharp increases or decreases without objective reasons.
Nevertheless, meme coins have gained popularity in the cryptocurrency market. Furthermore, some meme cryptocurrencies are gradually developing and forming digital communities and ecosystems, allowing them to be used as useful investment instruments. We will discuss the prospects and usefulness of meme coins further in the top list of the most popular and high-market-cap meme cryptocurrencies.
Dogecoin (DOGE)
This cryptocurrency, in short, laid the foundation for the history of all meme coins. Dogecoin was created in 2009 based on the popular internet meme Doge, which featured an image of a Shiba Inu dog with various humorous phrases.
The authors of one of the most popular meme coins are programmers Billy Markus and Jackson Palmer, who aimed to develop something similar to "Bitcoin" but for a wider range of users with vibrant visuals.
Four years after its creation, the coin was successfully launched. It gained significant attention from major investors like Elon Musk around 2014. Since then, numerous other meme cryptocurrencies, such as Shiba Inu and SafeMoon, have been inspired by the first "dog" meme coin.
The coin was initially used on platforms like X (formerly Twitter) and Reddit for payments related to text and visual content creation. Currently, Dogecoin is actively used for transactions across the network and for online purchases of goods and services. Moreover, anyone can mine the coin by joining a mining pool.
At the time of writing this article, the market capitalization of DOGE stands at $11.5 billion, with the coin itself priced at $0.08.
This meme coin entered the world of cryptocurrencies in the summer of 2020, offering a playful and unique alternative to Dogecoin. However, Shiba Inu draws inspiration not only from the success of the first meme cryptocurrency but also from Japanese culture, which is reflected in the project's design and symbolism.
The coin was launched on the Ethereum blockchain, which allows for the utilization of smart contracts, providing an additional level of security to the project.
Notably, the creator of the cryptocurrency remains undisclosed. The only known information is the pseudonym of the anonymous developer, Ryoshi. It should be mentioned that during its first year of existence, the cryptocurrency faced criticism for both imitating Dogecoin and the anonymity of its developers.
Despite the criticism, the meme coin continued to evolve and attract the attention of various communities and investors. Moreover, the project did not limit itself to a single coin—developers introduced a whole ecosystem that includes several tokens (SHIB, LEASH, and BONE).
One of the project's strong aspects is undoubtedly its dedicated community. Crypto enthusiasts, developers, investors, and traders actively discuss news on social media, share opinions, and propose enhancements for the project, which contributes to its growing popularity.
At the time of writing this article, the market capitalization of Shiba Inu (SHIB) stands at $5.2 billion, with the coin itself priced at $0.0000087.
Bonk (BONK) is the first meme coin based on the Solana blockchain. Interestingly, the creators decided to stick to the popular "dog" theme and introduced a competitor to Doge and Shiba Inu in 2022.
However, unlike other "dog" coins, BONK's primary goal is to aid in the rehabilitation and expansion of the Solana platform. The creators are focusing on the development of decentralized exchanges and decentralized finance.
DexLab, a decentralized exchange built on Solana, is the developer behind BONK. After its launch, the coin didn't gain much attention initially, but after a year, it gained the trust and recognition of DeFi traders and investors.
One significant advantage of the token is its wide range of applications. Thanks to its airdrop feature, the meme coin can be distributed to numerous wallets, used for transactions, and exchanged as a medium of exchange. Additionally, the coin has already been included in various projects such as Duel Casino and Aurory, implemented on the Solana platform.
At the time of writing, BONK's market capitalization stands at $638 million, with the coin itself valued at $0.00001.
Pepe (PEPE) is a meme coin that was launched in the spring of last year and has since maintained its popularity among cryptocurrency enthusiasts. The cryptocurrency draws inspiration from the well-known internet meme, "Pepe the Frog," created in 2005 by American comic artist and illustrator Matt Furie.
Specifically, Pepe gained significant popularity in 2010 when memes featuring the character started to be widely shared on the 4chan website. Since then, Pepe has become somewhat of a symbol within certain internet communities.
Pepe continues to boast a strong fan base encompassing numerous users worldwide. This has greatly contributed to the immense interest in the meme coin and its popularity in the market.
Following the project's launch, the price of Pepe skyrocketed by over 4,000 times on exchanges. One of the largest purchases of the meme coin to date occurred in the first month of its launch, with a crypto investor spending $250 to acquire 5.9 trillion Pepe coins, which later turned into $1 million. Naturally, this increased attention towards the coin in the market.
At the time of writing this article, the market capitalization of PEPE stands at $394 million, with the coin itself priced at $0.0000009.
Floki (FLOKI)
Floki (FLOKI) is a meme coin with a history that began in the summer of 2021 with a tweet from Elon Musk, in which he shared the nickname of his Shiba Inu dog. The cryptocurrency Floki Inu was created literally seconds after Musk's tweet. Within just 24 hours, the new coin increased in price by 3500%, making its owners millionaires. Interestingly, the creators themselves did not attach any serious goals to the meme coin and initially positioned it as a joke without any prospects.
However, as the project developed and gained more popularity, it underwent a renaming to Floki, and expanded into the gaming metaverse Valhalla, the token and merchandise marketplace FlokiPlaces, and even the educational platform Floki University. The project's developers include Moontography from MTGY and Jackie Sui.
At present, Floki can be considered a true multi-chain token, operating on not just one but two blockchains: Ethereum and Binance Smart Chain. The tokens can easily move between blockchains, allowing holders to use them with different chains for storage and conducting transactions.
The project also boasts a large and active fan base. Moreover, it has repeatedly appeared in the top 10 leaders of social activity on LunarCrush.
At the time of writing this article, the market capitalization of FLOKI stands at $267 million, with the coin itself priced at $0.000027.
Meme coins may have started as internet jokes, but they have evolved into a significant niche within the cryptocurrency market. These coins, like Dogecoin and Shiba Inu, have captivated the public, driven by internet culture and celebrity influence. Despite their lack of intrinsic utility, meme coins hold a unique appeal for investors and continue to generate interest through community engagement and accessibility. However, these investments are not without risk. As meme coins become more embedded in the market, understanding their dynamics and potential risks is essential. Investors should proceed with caution, considering both the appeal and volatility that come with these digital assets.
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