The evolution of memecoins has been astounding to watch. In recent times, it seems like every single day a new meme is pumped into the market, with some of them gaining significant value in a very short period.
Sure, these types of cryptocurrencies are not everyone’s cup of tea. After all, for every memecoin that gets pumped, there are like… thousands of them that go unnoticed. Also, these tokens are highly speculative and volatile by nature, with very few memecoin projects going out of their way to provide real-world utility.
History Of Memecoins
It all began in 2013 when Billy Markus and Jackson Palmer decided to create a cryptocurrency inspired by Bitcoin. Why? Well, the two developers thought it would be funny… and to be honest, it kinda was.
At the time, the IBM software developer Billy Markus had already created a joke currency inspired by the game Animal Crossing, known as “Bellscoin”. The project never really took off, different from his second attempt at turning crypto into a joke.
The crypto in question is the well-known memecoin “Dogecoin”. A cryptocurrency inspired by the “doge” meme, featuring the iconic Shiba Inu dog.
Dogecoin would quickly gain notoriety as a joke among the cryptocurrency community. However, on December 19, 2013—only a couple of days after its launch—the currency would see a 300% growth in value in a single day due to China banning Bitcoin investments, making Doge a great alternative.
Today, Dogecoin is one of the top 10 most valuable cryptocurrencies, with a market capitalization of $37 billion. DOGE also reigns as the memecoin king, with the largest market capitalization among all meme tokens.
Memecoins In Crypto
Dogecoin’s success paved the way for hundreds of thousands of memecoins to enter the market.
The trend really caught on after 2020, with the creation of the Shiba Inu Token (SHIB). The world’s second-largest dog-inspired crypto gained notoriety that year after Ethereum co-founder Vitalik Buterin burned nearly half of the total supply of SHIB, causing its price to catapult in value.
Several new memes began making their presence known in the market after that. Currencies like Floki Inu, Doge, Shiba Inu, DogwifHa, and Pepe rapidly cultivated a large following in the market.
Today, even the President of the United States has his own official meme token, make of that what you will. Nonetheless, it is undeniable that memecoins are now highly influential in the market.
Memecoins vs Traditional Crypto
The fact that these currencies are created to make fun of or satirize something, memecoins tend to enter the market without a clear purpose of why they exist as a tradeable digital currency.
Meanwhile, traditional cryptocurrencies like Bitcoin and altcoins have well-defined use cases and utility from the get-go. For instance, Bitcoin was developed to be just what it is, a means of payment that also serves as a store of value. Ethereum was also created to enhance the capabilities of blockchain technology by providing a platform for decentralized applications.
Memecoins, however, tend to have none of that, at least at its early stages. These types of cryptocurrencies are generally driven by market speculation, online presence, and community hype.
For this reason, a public endorsement from a famous celebrity tends to cause a fuss of excitement and value-growth for memecoins.
Despite being memecoins, these currencies still are tradeable assets, and—as assets—they will always long for utility to keep the good health of the ecosystem.
When Elon Musk tweets something positive about doge, the currency is not going up only because Musk endorsed it, but rather because investors bet on the off chance that the richest man in the world could adopt doge in one of his many projects—therefore giving it utility.
Dogecoin vs Shiba Inu
Dogecoin (DOGE) and Shiba Inu (SHIB) are the two most well-known memecoins in the cryptocurrency world.
Dogecoin has a larger market capitalization of $37 billion, while Shiba Inu has a market cap of around $9 billion. Each $DOGE token is valued at around $0.25 at this time of writing, while $SHIB is worth a fraction of a cent, at $0.00001532 as of February 20.
When it comes to utility, Shiba Inu may hold an edge against Dogecoin, but it depends on how you look at it.
Dogecoin enthusiasts argue that since Doge has been used as currency for tipping systems, plus the fact that the asset has been integrated into payment processors like Bitpay and Coinbase—the memecoin has as much utility as any other type of money.
In counterpart, Shiba Inu appears to be more focused on developing a comprehensive ecosystem around its token. With the introduction of ShibaSwap blockchain, a DEX, and Shiboshis, unique NFTs within the Shiba Inu ecosystem, SHIB is positioning itself as a more comprehensive project as far as DeFi projects go.
To make it simple, Dogecoin holds an edge in adoption, notoriety, and willingness people have to adopt it as a currency—while Shiba Inu fairs better when talking about utility-driven results. By the way! We have a more fleshed-out piece specifically about the Doge vs Shib rivalry… you can check it out here!
Investing In Memecoins
The potential million-dollar question right? How to find “the one” memecoin that will lead you to unthinkable wealth? Well… the first step is always to not approach any sort of investment with this mindset.
The speculative nature of memecoins makes them a horrible bet to go “all in” into. Sure, you may score big, but chances are you won’t. So always make sure to keep your risk management on point.
However, there are a few things to understand about memecoins to make them potentially more profitable for you. Here is a quick list:
How Memecoins Gain Value
Meme-based cryptocurrencies function exactly like any other crypto. The value of each token is dictated by the collective actions of buyers and sellers in the market—driven by supply and demand, market sentiment, and perceived utility.
In other words, their value comes from how many people want to buy or sell them, what people think they’re worth, and how useful they are.
Memecoins And Social Media
Social media serves as a “meter” for the popularity and market sentiment surrounding memecoins. Outlets like Twitter, Reddit, and TikTok are essential in creating hype, spreading memes, and engaging communities.
The Pepe Token entered the market and quickly became the third most valuable meme currency in the world. This happened primarily because even before its launch, the Pepe community was already very significant.
The same thing happened very recently with the launch of the Pudgy Penguins (PENGU) memecoin, as they were already one of the most successful NFT lines in history.
Generally speaking, a larger following will likely translate to more trading volume, which will definitely be beneficial for a memecoin that is about to launch.
Celebrity influence on memecoins also has a significant impact on their value. Led by Elon Musk’s relationship with Dogecoin, celebrities like Dave Portnoy have shown immense ability to profitably promote these assets.
Memecoin Market Cycles
As a whole, memecoins tend to trade similarly to other altcoins. For this reason, these currencies tend to gain the most amount of value during altseason, also known as the period in which altcoins outperform Bitcoin.
However, these assets also see great growth in periods when Bitcoin is gaining value. For instance, when Bitcoin was climbing to reach above $100,000 per coin in the late quarter of 2024, memecoins like Dogecoin and Pepe also gained a significant amount of value.
Given their volatility and extreme speculative nature, memecoins tend to perform well in favorable market conditions, often outperforming Bitcoin and other altcoins. However, the same is true in a bearish market, where it is not unusual to see them dropping more than other established currencies.
Future Of Memecoins
Over the past couple of years, memecoin projects have taken a shift from being just memes and trying to become relevant and useful to the overall growth of the cryptocurrency sector. With the introduction of new utility features and real-world applications, memecoins are now striving to serve a bigger audience, surpassing their status of just “memes” and providing the market with tangible and innovative solutions.
Memecoins With Utility
Shiba Inu
- The Shiba Inu project has evolved from just a regular memecoin to arguably the most innovative ecosystem in the meme market.
- Includes a DEX (ShibaSwap), staking options, and a layer-2 blockchain (Shibarium).
- Shibarium aims to provide better transaction scalability, reduce fees, and improve the SHIB burn rate.
Pepe Token
- The Pepe token offers a zero-fee exchange platform (PepeSwap) to make Pepe holders get the most out of their transactions.
- A cross-chain bridge named “PepeBridge” for seamless transactions between different blockchains, improving liquidity and accessibility.
- Provides attractive staking rewards through PepeStaking, incentivizing long-term holding and engagement within the community.
Dogecoin
- Despite not having as many projects geared towards utility, Dogecoin partners with several different crypto wallet brands, making the currency potentially more acceptable for everyday transactions.
Bonk Inu
- Bonk Inu is innovating with the introduction of a decentralized exchange (BonkSwap), allowing users to swap their BONK tokens to other assets.
- The project is also expanding into the gaming sector with BonkGaming, exploring use cases in gaming and NFTs to offer unique value propositions and tap into new user bases.
Memecoin Trends 2025
As of February 2025, the market is certainly at a peculiar moment. While established memecoins are betting on more utility-driven solutions—there is a new trend in the market of “collectible” memecoins.
The craze was led by the unexpected launch of the $TRUMP token, endorsed by Donald Trump himself. This event led to the creation of new similar tokens, like the First Lady’s $MELANIA token.
On top of that, the market appears to be entering a new stage of a “memecoin race”, with new projects becoming extremely volatile after a potential endorsement by a celebrity or not. Under the connotation of “collectible”, this new trend has been responsible for a handful of tokens gaining a significant amount of value in a very short time frame.
However, this “collectible” trend is not likely to endure a very long shelf life. Excluding already established currencies with a significant market cap like the two “Presidential” memecoins, chances are that investing in a new meme promoted by a random celebrity will only make you lose money.
Meanwhile, staying tuned to the new memecoin launches, while reviewing the growth potential of each project after analyzing key elements like online presence, roadmap projects, and so on still seems like the best bet for memecoin investors.
Top Memecoins to Watch
For already established projects like Dogecoin, Pepe, and Shiba Inu, staying close to the action and following the news about new developments in each ecosystem is still a great way to find potentially lucrative bets.
Also, it will certainly be interesting to see how the $TRUMP and $MELANIA tokens behave during Donald Trump’s presidency. Once the dust settles, there is a strong possibility that these two tokens act like a “meter,” potentially going up when the Government implements popular policies, and potentially losing value if Trump’s rejection grows.
Conclusion
In 2025, memecoins have proven to be more than just fleeting internet jokes. With the introduction of new utility features and real-world applications, memecoins are striving to serve a larger audience and provide the market with innovative solutions.
The success stories of several memecoins highlight the significant impact that community support, social media influence, and celebrity endorsements can have on the value of these assets. As of 2025, Dogecoin, Shiba Inu, and Pepe Token are among the most popular memecoins today, leading the way for more innovation in the meme market, potentially leading to a less speculative and more sustainable market.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
