The cryptocurrency market has undergone a phenomenal period of growth and mainstream integration in recent years. Leading coins have broadened their appeal with individual investors and institutions alike, with Bitcoin and Ethereum in particular performing the most strongly. As a burgeoning tech sector as much as a financial one, the industry is no stranger to trends. However, a new movement is sweeping through the decentralized sectors that’s capturing a totally different corner of the market.
Leveraging humor, collectability, and the power of social media, the memecoin is reigning supreme. Novelty tokens like Dogecoin and Shiba Inu have proved to be anything but; instead, creating an ecosystem that engages investors who are more interested in internet culture than trading and investing. The memecoin stands at the intersection of DeFi, gamification, and speculative investing, and it might just be one of the core innovations to ensure the future of decentralized currencies.
Meme Coins Explained
Meme coins are decentralized digital currencies, not unlike the alt coins you’re already familiar with. However, unlike traditional cryptocurrencies, which are primarily driven by technological value propositions, meme coins are borne from internet trends and social influence.
Dogecoin, for example, came into existence as a “joke” currency, playing on the widely-shared Doge meme. Bizarrely, high-profile endorsements came flooding in — with future X mogul Elon Musk being a prominent one — and the coin’s market cap shot up to peak levels in 2021.
Despite a lack of intrinsic utility, meme coins often offer unique value as community assets. They’re accessible, easily recognizable, and — crucially — invite speculative buying behavior that aligns with digital culture. There’s an element of gamification at play too; their limited utility means that price movements are driven more by social hype than underlying tech functionalities, so they are often highly volatile.
A Strange Kind of Appeal
The vast majority of crypto enthusiasts and investors choose projects with long-term utility or high-value propositions. Meme coins live at the other end of the spectrum; they usually debut at extremely low prices and the potential is speculative at best. But herein lies their appeal…
One could actually “invest” in thousands of tokens like the Shiba Inu coin with a relatively modest fund. While this won’t deliver the returns serious investors expect, it nevertheless creates a feeling of abundance that contrasts with higher-priced assets like Bitcoin. Crypto investing suddenly becomes accessible… and this popular investment gateway is especially appealing to certain demographics.
For Gen Z, meme coins are a natural fit. This is a generation that’s grown up embedded in internet culture, making the community-driven appeal of meme coins all the more relevant. According to stats published by Altify, the likes of DOGE, SHIBA, and PEPE have been consistently outperforming BTC and ETH since the beginning of the 2023/24 bull run. And with the target demographic for such coins being younger adults, a clear pattern of growth begins to emerge.
In a strange way, meme coins offer buyers a sense of collective identity and belonging — evident in the hundreds of active discussions filling up communities like the r/dogecoin subreddit. The sharing of holding strategies combined with the FOMO that comes from leading digital-native lifestyles only serves to cement meme coins’ status as an era-defining cultural moment.
Moving into the Mainstream
Beyond their niche appeal, these experimental digital assets are slowly becoming more and more integrated into the mainstream crypto ecosystem. The gaming and entertainment industries, especially, have opened their doors to meme coin absorption.
For instance, let’s take the crypto gambling sector, which contains interactive online casino platforms where you can play games like roulette, blackjack, and slots for real money prizes. Here, you’ll see Doge listed alongside BTC and familiar altcoins as accepted payment and withdrawal methods at platforms including the mBit Bitcoin casino, providing consumers with an alternative to debit cards. Lots of people are enthusiastic about this new way of using crypto and increasing the security of their online play sessions - so it’s proving pretty popular as a new way of playing!
Similarly, meme coins are making their way into play-to-earn ecosystems, cropping up in GameFi titles, or being bought by players trading their asset rewards.
Meme Coins to Watch
As we’ve mentioned before, meme coins very much fall into the experimental crypto asset category, but their novel value strengthens their appeal to the curious investor. The nature of this sector also means new “coins” hit the market with some frequency, so which are the projects worth investing in?
Dogecoin (DOGE)
As the OG meme crypto, Dogecoin continues to maintain its reputation with a loyal following and an impressive market cap. The project is a strong option if you’re looking to invest in meme coins with a history of high-volume trading.
Shiba Inu (SHIB)
Aka the “Dogecoin killer,” SHIB is the meme coin answer to ETC. Its ecosystem has been boosted by ventures into DeFi and blockchain gaming, and the decentralized ShibSwap exchange gives legitimate ways to engage with this coin beyond simple trading.
Floki Inu (FLOK)
Another Elon Musk-inspired meme token, Floki Inu was so named for the billionaire’s pet dog. This is another coin with a large, enthusiastic community fueling its growth, and it has often been used for social media-driven campaigns.