What Is Meme Coin and It’s Current Position in the Market

Today meme coins are becoming more popular. These tokens overshadowed even the most trendy cryptocurrencies like Bitcoin and Ethereum. According to Coinmarketcap.com, the most-talked-about meme Dogecoin and Shiba Inu broke into the TOP 10 by market cap. What meme coin is? Where did it come from? What market position does it take? Let’s understand.

What meme coins are

Digital coins inspired by famous social media sarcasm, jokes, or puns are meme coins. The Coinmarketcap data shows that their current number has already exceeded 124. The Shiba Inu and Dogecoin tokens are the most popular among them.

Their market position

Starting in 2013 as a joke, Dogecoin is now worth over $35 billion, and one token is trading at around 27 cents. Dogecoin ranks number 10 by a market cap. The Dogecoin killer, Shiba Inu, is a creation of an anonymous person known as ‘Ryoshi.’ It originated in 2020 to make fun of Dogecoin. Today, Shiba Inu is the 9th digital coin with more than $38 billion market value. It can be bought for $0.00008616 per token.

The meme coin difference

Major cryptocurrencies, including Bitcoin, are created using unique technology to stimulate trade and transactions in the digital market. At the same time, meme coins carry no value. They have no fundamentals. It’s a kind of a community-driven phenomenon, a form of expression for millennials and Gen Z.

Meme coins volatility

Volatility is one of the main characteristics of digital coins in general. Meme coins are even more volatile than mainstream cryptocurrencies. The cost of meme coins is highly society-dependent. Their performance mainly depends on the support in social media and the hype created by influencers. For example, CEO of SpaceX and Tesla Elon Musk often causes price fluctuations of many digital coins with his Twitter posts.

Will meme coins stay with us for a long? It’s hard to say. Today they are at the peak of popularity, and tomorrow you may not hear about them at all as soon as something else will attract the public’s attention.