Memecoin is a unique form of cryptocurrency that draws its inspiration from memes and serves as a more affordable alternative to Bitcoin. The very first memecoin, known as Dogecoin, was created based on the popular Shiba Inu meme. Alongside Dogecoin, there are several other well-known memecoins, including Dogelon Mars, Shiba Inu, Floki Inu, and Samoyedcoin.
The Rise of Memecoins
Initially, memecoins were not taken seriously within the realm of crypto trading and were often regarded as a joke. However, the endorsement of memecoins by Elon Musk caused their value to skyrocket. Musk’s tweets about Dogecoin led to an overnight surge in its value.
Other influential figures such as Snoop Dogg and Mark Cuban have also expressed interest in memecoins, further contributing to their popularity.
Within a few months, memecoins managed to secure a spot among the top 10 cryptocurrencies based on market capitalization. By the end of 2021, another prominent memecoin, Shiba Inu, had also made its way into the top 10 list. The Chief Revenue Officer of Zeb Pay commented on the growing prominence of memecoins:
“The surge in volumes that the token [Shiba Inu] has been witnessing can also be attributed to the FOMO that typically arises as interest peaks, and traders rush to take part in the rally as a means to book profits.”
During the GameStop frenzy, traders were in search of a new obsession, and memecoins became a hot topic of discussion on Reddit, especially after receiving endorsements from billionaires. Since its launch in 2013, Dogecoin aimed to challenge Bitcoin by being more affordable and having a larger circulation, with a supply of around a quadrillion coins.
Nigel Green, the CEO of the deVere Group, stated:
“In the same way that the GameStop frenzy was pitched as a battle-play of ‘Wall Street versus The Little Guy’, Dogecoin is being pitched as a battle-play against the well-established crypto giants like Bitcoin.”
Another significant aspect of the memecoin boom is that it provides an opportunity for retail investors to maximize their small investments. Bitcoin may be out of reach for many new traders and small investors due to its high value. The faster minting and limitless coin acquisition of memecoins continue to attract more traders. Earlier this year, Dogecoin surpassed giants such as eBay and Kraft Heinz in terms of market value.
Popular Memecoins in 2021
As of now, the most popular memecoins include:
- Shiba Inu
- Dogelon Mars
You can find the complete list of top memecoins on CoinMarketCap.
What Can Memecoins Offer?
According to Nasdaq, memecoins primarily serve as a means to make money and currently do not offer real-world utility like Ethereum and Bitcoin. However, if the ongoing trend of memecoin endorsements by Musk and other influencers continues, there may still be short-term benefits for traders. While the popularity of memecoins continues to rise, they remain a more feasible option for new investors to make small gains.