What Are Meme Coins?

Meme coins are a unique class of cryptocurrencies that originate from internet jokes and viral content. What began as a parody has evolved into a legitimate, though highly volatile, sector of the digital asset market. Today, the space has expanded to include over 300 different meme coins, with well-known names like Shiba Inu and PEPE joining the ranks alongside more obscure tokens.

These projects are often built around comical characters or cultural references to cultivate a strong community following. While many embrace an intentionally lighthearted model, some have achieved billion-dollar market capitalizations, demonstrating their significant, if unpredictable, economic power.

Dogecoin (DOGE): The Original Meme Coin

The entire phenomenon started with Dogecoin (DOGE). Launched in 2013 by software engineers Billy Markus and Jackson Palmer, the project was a satirical take on the explosion of new cryptocurrencies, particularly Bitcoin. It adopted the popular Shiba Inu dog meme as its mascot and, despite its humorous origins, quickly gained traction.

After years of relative obscurity, Dogecoin’s popularity surged in the late 2010s, fueled in part by promotional social media posts from figures like Elon Musk. It has since weathered market cycles and corrections to solidify its place as one of the most recognized cryptocurrencies. To this day, Dogecoin remains the largest meme coin by a significant margin.

Shiba Inu (SHIB): A Challenger Emerges

Inspired by Dogecoin’s remarkable success, Shiba Inu (SHIB) was launched by a pseudonymous creator known as Ryoshi. Running on the Ethereum blockchain, the project was positioned as a direct competitor, even earning the nickname the “DOGE killer.” It closely mirrored Dogecoin’s branding, using the same Shiba Inu dog as its symbol.

SHIB experienced a rapid ascent during a bull market, sparking speculation that it could overtake its predecessor. While that prediction has not come to pass, the Shiba Inu team has since worked to build a unique identity by introducing more utility into its ecosystem, moving to establish itself as more than just a parody.

Once dismissed as internet novelties, meme coins have carved out a significant and highly volatile niche within the cryptocurrency market. These tokens often derive their value from viral trends and community enthusiasm rather than underlying technology. While this can lead to explosive growth, the sector is also prone to sharp downturns, as seen in the summer of 2024 when a period of rapid expansion was followed by a broad market decline.

The Established Contenders

The breakout star of 2023 was Pepe (PEPE), an ERC-20 token based on the popular “Pepe the Frog” internet meme. It quickly ascended the charts, demonstrating the classic meme coin trajectory: a massive rally fueled by hype, followed by a significant correction. Despite the volatility, it has maintained its position as one of the top meme coins by market capitalization.

The Solana blockchain has also become a major hub for meme coin creation. Dogwifhat (WIF), featuring a Shiba Inu in a knitted beanie, launched in late 2023 and became an instant success. After reaching a peak of $4.58 in April 2024, its price experienced a sharp fall and has since struggled to reclaim its previous high. Another Solana-based token, Bonk, was introduced in December 2022 with a community-first approach. It gained widespread attention after airdropping 50% of its total supply to Solana users, aiming for deep integration across the network’s decentralized applications (DApps).

A Shift Towards Utility: The Case of Floki

The influence of high-profile figures like Elon Musk remains a powerful force in the sector. After Musk named his puppy Floki, a new meme coin of the same name emerged. However, the Floki project aims to distinguish itself by building an ecosystem with tangible utility. This includes plans for an NFT marketplace, decentralized finance (DeFi) services, and crypto education platforms. While the long-term success of these ventures is still uncertain, Floki represents a growing trend of meme coins attempting to add substance to their viral appeal.

The New Wave: Gaming and Politics

The meme coin landscape continues to expand into new territories. Hamster Combat, a play-to-earn game on Telegram, became a sensation during the summer of 2024. The game allows players to manage a virtual crypto exchange, with the promise of an upcoming token airdrop. Telegram’s founder, Pavel Durov, has indicated the Hamster (HMSTR) token is expected to launch on The Open Network (TON), though the highly anticipated airdrop has faced delays.

Politics has also become a new frontier for meme tokens. A coin named Official Trump (TRUMP) launched on the Solana blockchain, quickly gaining a multi-billion dollar market capitalization and breaking into the top 20 cryptocurrencies. The project is notable for its token economics, with reports indicating that 80% of the supply is held in a single wallet and subject to a vesting schedule that releases tokens quarterly. This concentration of ownership and planned dilution has drawn significant attention. The emergence of TRUMP alongside other politically-themed coins highlights a new trend of using meme tokens for social and political commentary.