In recent times, meme currencies have become more popular than mainstream cryptocurrencies like Bitcoin and Ethereum. According to Coinmarketcap.com, the top two meme cryptocurrencies, Shiba Inu and Dogecoin, are now in the top 10 by market value. Let's understand what meme coins are, their origin and their position in the market.
What are Meme Coins?
Meme coins are those cryptocurrencies that are inspired by jokes, sarcasm or popular puns on social media. According to Coinmarketcap, there are currently around 124 meme coins. Tokens like Shiba Inu and Dogecoin are some of the most popular meme coins on the market.
Market position
According to CoinGecko, Dogecoin, which originated in 2013 as a hoax, is ranked No. 10 for a market value of more than $ 35 billion. It is currently trading at around 27 cents, while rival Shiba Inu token, which was started in 2020 by an anonymous person known as 'Ryoshi' to poke fun at Dogecoin, is ranked No. 9 with a market value of over $ 38 billion. Additionally, Shiba Inu (the supporting community calls him the "Dogecoin killer") hit an all-time high of $ 0.00008616 per token on October 26, 2021.
How are Meme Coins Different from Conventional Cryptocurrencies?
Conventional cryptocurrencies like Bitcoin have been created with specific technology to drive trade and transactions in the cryptocurrency market, while meme currencies have not been created with a specific use or inherent value. โThe Meme Coins are baseless. They're more of a community-driven phenomenon, a form of expression for millennials and Gen Z. It has all the bells and whistles of reckless gaming, so to speak. Investing in Meme Coins is not devoid of associated risks and rewards. The recent rise and fall of the Squid Games token is a testament to this fact, โsays Sharat Chandra, a blockchain and emerging technology evangelist.
Volatile nature
Volatility is always a major concern in cryptocurrencies and these meme coins are even more volatile than conventional crypto tokens. Meme Coins are highly community driven. His performance and fame are mainly related to the support of social networks and the hype created by influencers. For example, billionaire Elon Musk, CEO of SpaceX and Tesla, often tweets about different cryptocurrencies and in doing so has apparently affected their prices.
โAlthough the Ethereum-based Shiba Inu token ecosystem enables creators through NFT (non-fungible token) art incubators, a Shibaswap, a decentralized exchange, is also being worked on. It's too early to comment on the usefulness and promise of these meme coins. The Dogecoin mania is driven entirely by Musk's whims and fantasies. Shiba Inu is touted as the 'Dogecoin Killer' by Shiba Army fans. The price duel between these two dog-themed coins is nothing more than a fun spectacle for retail investors who are in this game just for fun, โsays Chandra.
Are meme coins here to stay? No one can tell because they could become mainstream or die a sudden death as soon as some other show grabs everyone's attention.
