17. Dogecoin and memecoin – what are they?

You’ve probably heard of Bitcoin or Ethereum, but did you know there are also cryptocurrencies created as jokes? Memecoins are digital coins inspired by memes and online trends. They started as fun projects, but some have reached astonishing valuations.

The best example is Dogecoin – a cryptocurrency based on a meme featuring a Shiba Inu dog. It was created as a joke in 2013, yet today, it has a market capitalization worth billions and is held by thousands of investors.

Why are memecoins so popular?

Memecoins operate differently than “serious” cryptocurrencies. Their popularity is not driven by technology but by community hype and celebrity endorsements. Billionaire Elon Musk, the CEO of Tesla, has repeatedly tweeted about Dogecoin, causing its price to soar. As a result, other investors started buying DOGE, hoping to profit.

By 2021, the memecoin boom had fully arrived – thousands of new projects emerged within just a few months. Some proved to be good investments, while others were merely temporary trends.

Key characteristics of memecoins

Memecoins share several common traits that distinguish them from traditional cryptocurrencies:

• Large supply – Unlike Bitcoin, which has a maximum supply of 21 million coins, memecoins often have trillions of tokens in circulation. This keeps their unit price extremely low.

• Lack of real utility – Bitcoin can be used as a means of payment, and Ethereum enables smart contracts, but most memecoins serve no practical purpose. Their value is purely speculative.

• High volatility – Memecoin prices can skyrocket by hundreds of percent in a matter of days, only to crash just as quickly. This market carries significant risk and frequently resembles gambling.

• Community-driven – With memecoins, technology takes a backseat to community engagement. Projects with active supporters have a greater chance of survival and growth.

Most Popular Memecoins (as of 1 July 2025)

1. Dogecoin (DOGE) – The market leader with a capitalization of approximately $32 billion. The test phase for integration with the X Money payment system is underway. The U.S. Securities and Exchange Commission (SEC) has approved the review process for a DOGE-based ETF application.
2. Shiba Inu (SHIB) – The second-largest meme coin by market cap (around $9 billion). The Shibarium network processes over 2 million transactions daily, and weekly token burn mechanisms have reduced the supply by a total of 41 billion SHIB over the past three months.
3. Pepe (PEPE) – Market capitalization has stabilized at $5.7 billion after a significant rally in May. PEPE ranks in the top 3 for daily liquidity on Uniswap and Bybit.
4. dogwifhat (WIF) – With a market cap of $1.3 billion, WIF is listed on over 30 centralized exchanges, and daily trading volume exceeds $100 million. It holds a leading position among Solana-based meme coins.
5. Bonk (BONK) – Currently valued at $1.6 billion. The latest tokenomics update includes weekly buybacks funded by DeFi fees. BONK is widely used as a utility token in NFT platforms and play-to-earn games.
6. Floki Inu (FLOKI) – With a market cap of $1.1 billion, its “Valhalla” metaverse platform is in open beta across four continents. FlokiFi has launched a new staking product offering a 12% APR over six months.
7. Popcat (POPCAT) – Market capitalization has exceeded $400 million. Listed on Solana, the number of wallets grew by 36% in June. POPCAT is among the top 10 most searched tokens on DexTools.
8. TRUMP (TRUMP) – Market cap remains below $10 million. The token peaked during the June presidential debate, but daily trading volumes have dropped 68% since early July.
9. Zerebro (ZEREBRO) – With a market cap of $41 million, this AI-driven project gained notoriety after a PR crisis. It is currently testing GPT-4o integration for meme strategy generation.
10. Fartcoin (FARTCOIN) – Market value stands at $1.2 billion. Following the launch of a dynamic fee system, the token is experiencing record interest on Pump.fun and Solana DEX platforms.

Is investing in memecoins worth it?

Potential benefits

• The possibility of massive profits in a short time.
• Large communities and hype can attract new investors.
• Some memecoins are developing ecosystems that increase their usefulness.

Main risks

• Highly speculative – prices can drop to zero.
• Lack of fundamental value – most have no real-world applications.
• Risk of scams – some memecoins turn out to be fraudulent schemes.

Summary

Memecoins are a unique sector of the cryptocurrency market – some started as jokes, while others have built strong communities and growing ecosystems. However, it is crucial to remember that investing in them carries significant risks. If you decide to buy a memecoin, never invest more than you can afford to lose.

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