Meme coins are a crypto category that few could have predicted would become so huge and influential. The assets have much lower price points, which is why detractors outright say that adding them to your portfolio is a waste of time and funds as they’ll never be able to amount to anything. But for those who buy and trade them, that is one of the features that makes them such a good investment in the first place. The smaller prices mean that volatility won’t affect you so hard and that the financial losses won’t be anywhere near as serious as in the case of more standard crypto coins.
If you’ve been thinking about investing in Shiba Inu or Doge, or are simply puzzled by the hype surrounding these assets and would like to understand where the popularity stems from in the first place, here are a few things you should know.
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What are meme coins?
All cryptocurrencies have the same fundamental characteristics, as they are assets that exist solely in the digital world and which are powered by the blockchain. However, each offers something new and unique, or they wouldn’t be successful in the fast-paced and highly competitive crypto environment. So, what makes meme coins different from their peers? They are part of the larger category of altcoins and are named after humorous topics, memes, and other parts of Internet culture. As a result, most of those who engage with them are people who are knowledgeable about these aspects.
The primary appeal of meme coins comes from their ability to foster a sense of community for their users and drive increasing engagement as a result. Peer-to-peer payments, speculative investments, and trading are all possible on the platforms. Nonsensical terms and amusing themes are common, and although outsiders might not be aware of what the coins reference, there’s also a large group of people who do, and they’re the ones who are most likely to invest. Interacting with cryptocurrencies occurs pretty much the same way as in the case of other digital assets. You will need a wallet that can hold your coins and passwords that will protect the integrity of your assets.
How do meme coins work?
Meme coins tend to work the same way as any other cryptocurrency, so investors don’t need to learn how to handle an entirely new class of holdings. Both individual developers and groups can conceive and create tokens, which will be hosted on a blockchain. The next step is to start marketing them and see the engagement begin to pour in. Solana has been the go-to platform for meme coin trades and creators over the last few years, and data indicates that the trend will continue in the near future. However, a growing number of market participants are increasingly drawn to BNB chain as an alternative.
Most meme coins are created without a predetermined use case apart from being convertible and tradeable. As of the first quarter of 2025, meme coin trading volumes surpassed $6 billion, with investors believing the marketplace is currently going through a super-cycle. During this period, the assets grew considerably and attracted large numbers of new investors willing to join in on the hype. Much like most other crypto holdings, meme coins don’t have anything backing them or generating value. Hype and speculation are at their core, meaning that volatility and price fluctuations are common.
As a result, traders must still develop strategies and game plans that are perfectly tailored to their needs and financial goals. Approaching the market in a systematic manner is the only way to see results.
The hype
Meme coins are nowhere near close to outshining Bitcoin, Ethereum, or Solana, and they most likely won’t be for a long time, if ever. In fact, some analysts believe the market is decreasing in intensity, with liquidity drying up and prices tanking all over the ecosystem. However, others point out that this isn’t the first time when meme coins were believed to be completely obliterated. This behavior can be observed in the larger crypto market as well, as marketplaces are frequently believed to be in ruins before eventually springing back up.
Meme coins are based on jokes and trends, and if there’s something you can bet on, it is that the Internet will always move on to the next thing and that something will always generate a lot of hype. As a result, there will always be meme coins to invest in as well. Some of the tokens existing at the moment have valuations that are worth several billions of dollars, which is crazy in and of itself when considering that these tokens are nothing more than jokes.
Why are meme coins special?
If you’re used to spending time online, you’ve most likely noticed how intense people can become. Whether it is fandom, politics, or anything else, you will always see someone with very strong opinions, most likely arguing with someone else. It is also the place where videos become viral overall and can amass hundreds of thousands of likes overnight. Meme coins attract invested and engaged crowds as well since they reflect popular memes from the Internet. They are, in a sense, an embodiment of the funnier and more light-hearted parts of online culture, although they are functionally so complex, combining financial markets with computer science.
Celebrities and influencers have changed the ways in which cryptocurrencies are regarded as well, and that includes meme coins. The endorsement of these individuals who have large online followings means that a substantial number of people are exposed to meme coins and end up wanting to invest in them as well since they see influential people adding them to their portfolios. Meme coins are also great if you’re looking to experiment in the crypto ecosystem since the prices are much lower, so even if you make mistakes, the losses won’t be enough to destabilize your financial well-being.
If you’re new to crypto coins and want to make sure you minimize the risks as much as possible remember to come up with a comprehensive strategy that can help you achieve your financial goals. It’s the only way to ensure your success.
