Introduction

Meme coins have emerged as a distinct and increasingly influential category within the cryptocurrency ecosystem. Unlike traditional cryptocurrencies, which are typically driven by technological innovation and financial applications, meme coins primarily derive their value from internet culture, humor, and community engagement. Often inspired by viral memes, internet trends, or popular figures, these tokens appeal to both crypto enthusiasts and newcomers alike, offering an accessible and entertaining entry into the world of digital assets. In this paper, we explore the rise of meme coins, their impact on the cryptocurrency market, and the factors that contribute to their popularity. From dog-themed tokens like $DOGE to politically charged coins like $PNUT, we analyze how meme coins are reshaping the way people interact with cryptocurrencies, while also examining the challenges and risks that come with investing in these speculative assets.

What is Meme

Memecoins are a unique category of cryptocurrency that derive their identity from internet memes—humorous or viral images often paired with witty captions. Unlike traditional cryptocurrencies like Bitcoin or Ethereum, which are designed with technical utility and financial objectives in mind, memecoins focus primarily on community engagement, entertainment, and internet culture. Their value is largely driven by the strength and activity of their communities rather than any underlying technical innovations or financial applications.

The range of themes for memecoins is diverse, with some of the most popular being dog-themed tokens such as DOGE, WIF, SHIB, and NEIRO. Other common categories include animal-inspired coins (e.g., cat or penguin-themed) and Pepe-related coins, based on the viral "Pepe the Frog" meme. Additionally, there are tokens tied to political figures, celebrities, and internet subcultures like WallStreetBets and The Boy’s Club. Recently, the rise of AI and short video content has fueled the popularity of meme coins inspired by AI agents and viral video culture.

The defining characteristic of memecoins is their community-driven nature. These tokens often leverage humor and viral content to establish their brand and identity. Their value tends to rise as communities engage with memes through social media, creative content, and promotional events. Due to their low entry barriers and straightforward concept, memecoins are particularly appealing to newcomers to cryptocurrency or those looking for a fun, speculative investment.

To enhance visibility and attract new investors, memecoins frequently adopt bold marketing tactics, such as placing billboards in prominent locations or organizing high-profile events like lighting up famous landmarks. For instance, Dogwifhat, a popular memecoin, has raised funds to sponsor an ambitious campaign to illuminate the Las Vegas Sphere.

Despite their playful nature, memecoins have become a significant segment of the cryptocurrency market, boasting a combined market cap of over $121 billion and a market share of 3.62%. In the following section, we will introduce some of the most notable memecoins.

Animal Meme: $DOGE

In December 2013, software engineers Jackson Palmer and Billy Markus created Dogecoin as a satirical response to the speculative frenzy surrounding cryptocurrencies at the time. Drawing inspiration from the popular Doge meme, they adopted its image as the logo and named cryptocurrency Dogecoin.

Dogecoin's market value skyrocketed to $8 million within just two weeks after launched, briefly positioning it as the seventh-largest cryptocurrency in the world. The token quickly garnered a dedicated online community and built a loyal following. During the 2017-2018 cryptocurrency bull run, Dogecoin achieved its first market capitalization surpassing $1 billion.

Elon Musk has been a central figure in driving the popularity of Dogecoin. Musk first expressed interest in the token in 2018, and in the years that followed, his tweets and public endorsements significantly boosted its price, earning Dogecoin a prominent place in the cryptocurrency market. In 2021, Musk famously referred to himself as the "Dogefather," and the market capitalization of Dogecoin peaked at nearly $100 billion. However, in 2023, Musk faced allegations of insider trading related to Dogecoin, with claims that his actions led to significant losses for investors.

In 2024, the abbreviation "DOGE" gained renewed attention when President-elect Donald Trump used it to refer to the "Department of Government Efficiency" he planned to establish, with Musk and Vivek Ramaswamy slated to lead it. This brought fresh public focus to the term "DOGE," and as a result, Dogecoin's market capitalization rebounded to approximately $60 billion.