Memecoins
From Dogecoin to SHIB: The Rise and Resilience of Memecoin in Cryptocurrencies
Love them or hate them, memecoins can’t escape. The impressive gains boasted by top dog and catcoin traders regularly make headlines, fueling FOMO (fear of missing out). It would be easy to dismiss memecoins as a fad if it weren’t for their persistent growth and growing share of the cryptocurrency market.
When a respected figure like Vitalik Buterin feels compelled to comment, posting a treaty by claiming “higher quality, fun projects that contribute positively to the ecosystem and the world around them,” it catches the attention of the few remaining industry watchers who weren’t already tracking memecoins. The growing popularity of these assets is attracting talent and user activity to the space highlighted by Bitmex CEO Arthur Hayes in May.
Now everyone watches and many mistake them. The question is: are memecoins the natural evolution of cryptocurrencies or the last resort for desperate gamblers looking for a quick win?
In the beginning there was one
Just as there was initially only one cryptocurrency, Bitcoin, there was once only one memecoin: Dogecoin. Launched as a joke by Billy Markus and Jackson Palmer in 2013, it quickly gained a cult following, but it wasn’t until 2021 that memecoin mania really took off. That year, Dogecoin reached a market capitalization of $85 billion, surpassing many of the best 100 American companies.
Predictably, a multitude of other memecoins followed, each attempting to dethrone Dogecoin. While no one has succeeded yet, some have come close, notably $SHIBwhich is currently located just outside the top 10 cryptocurrencies. Memecoins are now a $56 billion industry with popular tokens like $PEPE, $WIFand $FLOKI regularly sees daily volumes exceeding everything except ETH and BTC.
The appeal of Memecoins
From a consumer perspective, the attractiveness of purchasing memecoins is obvious: their high supply and low unit price make them accessible to retail investors, while their affordability simplifies the acquisition process. Even the record-breaking returns achieved by holders of the most successful memecoins far exceed those of traditional assets like BTC. For example, $WIF is up 185.498% from its low five months ago.
But beyond simple speculation, there are several reasons why memecoins are now the face and future of cryptocurrencies.
The closest thing to a fair throw
It must be said that memecoins are among the fairest cryptocurrencies ever created. They do not require technical skills or specialist equipment to acquire; you just need to believe in the potential of the token. While the odds are stacked heavily against the buyer, identifying a coin with the right attributes – meme, community, content, uniqueness and that certain je ne sais quoi – is an underrated skill.
Even for those without the ability to identify one gem among the many launched simultaneously, there is still money to be made by purchasing memecoins that have already been successful. There’s a reason why memecoins like $PEPE are hitting all-time highs while major DeFi assets are declining, even in a bear market: distribution.
The main feature of memecoins is not their high supply or low unit price; it is their fair launch that allows everyone to enter on the ground floor. Memecoins stand in stark contrast to low-float, high fully diluted value (FDV) “VC coins,” whose charts often show perpetual decline. With the launch of memecoins, no one, except perhaps some internal wallets, gets an unfair advantage. It’s the ultimate PvP (player vs. player).
Rather than venture capitalists and influencers selling out to retail investors, it is often retail investors who force professional investors to buy their assets after realizing that memecoins are not a fad but an enduring asset class. There is no completely right launch, but memecoins come pretty close.
It’s not just retail investors who are interested in high-supply tokens. From the perspective of cryptocurrency exchanges, AMMs and DEXs, memecoins are extremely beneficial, as they increase trading volumes and increase protocol fees. Issuing a memecoin has now become the default way to launch a new DEX or layer2, similar to christening a new ship with a bottle of champagne.
Protest money for the people
Looking at new tokens traded on platforms like Cielo or the latest Solana tokens funded on Pump Fun, it is clear that most memecoins have a high level of hype and low originality. In the time it takes to read this sentence, a dozen memecoins will be launched on the EVM and Solana chains. By the time you finish this article, half of those coins will have failed. It is a fact that 99% of all memecoins will go to zero.
However, the same can be said for many “serious” cryptocurrencies that claim to have genuine utility and support. Whether it’s DeFi, GameFi, or RWA, the charts are full of tokens that peaked shortly after launch and have been declining ever since. At least with memecoins, people accept these risks, understanding that their value is driven by memes and community energy.
The fairness of memecoins also extends to their creation. Thanks to numerous Token-Launch-as-a-Service platforms, anyone can now create and issue their own token with no technical skills required. This allows for the spontaneous issuance of tokens to commemorate breaking news or latch onto the latest popular meme.
Memecoins represent protest money for people: a way to push back against those who hold power and wealth. In a space where ideas are judged on their merits, memecoins give a voice to the voiceless and an opportunity to the disenfranchised. The memecoins that succeed, reaching billion-dollar valuations and tier one listings, are the crypto equivalent of the underdogs who fought their way to the top through sheer grit.
Often simple and short-lived, memecoins nevertheless represent a unique opportunity for outsiders to make it big. Plus, they add a fun element to the crypto space. In a world where humor is increasingly regulated and open discussion is discouraged, memecoins remain a bastion of free speech. Regardless of the popularity of the concept, no one can stop a token from launching, thanks to the power of permissionless blockchains.
We may not like them all, but we cannot deny their place in the world of cryptocurrencies. Memecoins are here to stay.