What Are Meme Coins And Why Are They Becoming Popular?

Trends are changing everywhere. Whether we talk about the sector of entertainment or finance, games have changed, coins have flipped, and so has the way people think. When we talk about investment, in particular, it was and is still considered a serious and technical topic for most of us. But what has changed in this sector over the years? It’s the way we invest! 

For so many years, people have become familiar with the term Cryptocurrency and have been trading in it since then (well, a lot of the population). Being a new subject in the market, it has also evolved over the years. The first and original Crypto, the Bitcoin, is the most heard coin among all the others. It is because when the subject was new, Bitcoin was ruling the market. But as time passed and people started gaining knowledge, they understood there are other coins other than Bitcoin, popularly called Altcoins. The term Altcoin is not for a specific coin, but all the other coins other than Bitcoin are called Altcoins. A few of the examples consist of Ethereum, Solana, Tether, and the list goes on. One interesting fact: Bitcoins are limited; though the number is not very short, but they are finite. At the same time, there are new Altcoins coming up every now and then. So, it makes them available in a large numbers. 

Now there’s another kind of category called meme coins. Yes, their name is inspired by memes and funny ideas. Interesting how things like Cryptocurrencies can be named after something that netizens find a source of entertainment. Anyway, meme coins have become popular, and the two most well known meme coins are Dogecoin and Shiba Inu. Though meme coins were initially a joke, but have now become mainstream, and there are various people putting their money into it. For instance, Dogecoin was started after the dog meme started getting likes and endless shares. Never thought a meme or a joke could lead to something serious. :P

What are Meme Coins?

Meme coins are basically Crypto coins that got their inspiration from social media memes and are given support by netizens or specific communities. They have gained quite the recognition and even become more popular than the mainstream 

Cryptocurrencies. Though the word ‘meme’ might sound like it is not something serious, but there are various meme coins that are also termed as utility meme coins. As interesting as the name might sound, they are equally important and affect the market.

Now talking about meme coins and how they have evolved with time. Let’s take a look at the few key takeaways they have to offer:

Key Takeaways

It is a clear fact that all Cryptocurrencies are volatile. Meme coins have a higher rate of volatility over short intervals of time. They are extremely driven by pop culture and have an unlimited supply. 

Though the name may not sound much promising, meme coins also work like other Cryptocurrencies. They have a total advantage of the blockchain and similar technology. 

As mentioned earlier, Dogecoin and Shiba Inu top the chart of endless meme coins. They have different values and are volatile in nature. 

Though many people might still be in a dilemma about how to buy meme coins, they can be bought and sold just like mainstream coins giving you the benefit of investing your money.

There are coins like the squid game meme coin, which was inspired by a web series. It took over the market by its popularity and fame among the audience and influencers as well.

The fluctuation in the prices is also often defined by the emotions of the associated communities that play a major role.

What makes meme coins different from mainstream Crypto coins?

Regular Cryptocurrencies like Ethereum or Bitcoin were built on a particular technology to increase the transaction as well as trading in the crypto market. Meme coins, on the other hand, are not built with a particular use or inherent value. “Meme coins are devoid of fundamentals. They are more of a community-driven phenomenon, a form of expression of sorts for millennials and the Gen Z generation,” says blockchain and emerging tech evangelist Sharat Chandra.

Another thing that makes them different is their volatile nature. Though mainstream Cryptocurrencies are volatile, but meme coins have comparatively higher volatility rates. This is major because they are community-driven coins, meaning their fame and performance are linked to social media support and the hype and craze created by influencers. 

How do meme coins work?

Like any other Cryptocurrency, meme coins also take full advantage of the blockchain technology. They have made use of the blockchains using smart contracts like Ethereum and Solana. At the present time, there are more than 200 meme coins flooding the market with their existence. 

Now, how do you trade in meme coins? It is just the same like other Cryptocurrencies. They can be bought, sold, and traded on various platforms that are hassle-free to use.

While Bitcoin has been a topic of interest since 2009, meme coins have just entered the market. But are they really here to stay? Well, it all depends on the hype influencers create on social media. Though it is still a surprise how the Gen Z practices like social media can affect something so crucial as Cryptocurrencies. 

Let’s Conclude

Meme coins are designed to be traded rather than be defined as utility tokens.

They are highly volatile, and the prices change in a short span of time depending on social media charts.

They have uncapped supplies (exception being Shiba Inu).

Meme coins were brought in the market by the current buzz that surrounded us.

They usually have a low to very low price per token.

Whether or not you should invest in meme coins is an individual choice. While all the coins may be categorized, they all fall under the big name Cryptocurrency which has taken the market by its name and functionality. 

I hope you had fun reading all about meme coins. You can connect with me here.

Happy Reading! :)