The cryptocurrency market has been on a tear lately, with many coins reaching new all-time highs. Among them, Ether (ETH), the second-largest cryptocurrency by market capitalization, has been inching closer to the $4,000 mark, breaking its previous record of $3,985 set in May.
But while Ether and other major coins like Bitcoin (BTC) and Cardano (ADA) have been stealing the spotlight, some lesser-known tokens have also been making waves. These are the so-called meme coins, cryptocurrencies that are inspired by internet memes and often have little to no intrinsic value.
One of the most prominent meme coins is PEPE, a token that features the image of a frog with a human-like expression. PEPE was launched in 2016 as a parody of the popular Pepe the Frog meme, which became associated with various political and social movements.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
PEPE claims to be the “original rare Pepe blockchain trading card project”, and its website states that it is “a decentralized community experiment”. According to CoinMarketCap, PEPE has a market cap of over $1.2 billion and a circulating supply of 700 million tokens. It is currently trading at around $1.7 per token, up more than 1,000% since the beginning of the year.
PEPE is not the only meme coin that has been surging in value. Other examples include Dogecoin (DOGE), Shiba Inu (SHIB), and Akita Inu (AKITA), all of which are based on images of dogs. Dogecoin, which started as a joke in 2013, has become one of the most popular cryptocurrencies in the world, thanks to the endorsement of celebrities like Elon Musk and Mark Cuban. Shiba Inu and Akita Inu are newer projects that aim to be alternatives to Dogecoin, with similar names and logos.
The rise of meme coins has been attributed to various factors, such as the influence of social media, the appeal of humor and novelty, and the desire to make quick profits. Some analysts also see meme coins as a sign of market euphoria and irrationality, warning that they could pose risks for investors who are not aware of their volatility and lack of fundamentals.
However, some meme coin enthusiasts argue that these tokens have more value than meets the eye. They claim that meme coins represent a form of cultural expression and community building, and that they can also serve as a gateway for newcomers to enter the crypto space. Moreover, some meme coins have been developing their own use cases and features, such as governance systems, charity donations, and NFT platforms.
One factor that may affect the future of memecoins is regulation. As cryptocurrencies become more mainstream and attract more attention from governments and regulators, memecoins may face more scrutiny and challenges. For example, some countries may ban or restrict the use of memecoins, or impose taxes or fees on them. This may reduce the demand and liquidity of memecoins, and make them less attractive to investors and users.
Another factor that may affect the future of memecoins is innovation. As the cryptocurrency space evolves and develops, new technologies and features may emerge that may enhance or challenge the existing memecoins. For example, some memecoins may adopt smart contracts, decentralized applications, or layer 2 solutions that may improve their functionality and scalability.
On the other hand, some new memecoins may emerge that may offer better value propositions, user experiences, or communities than the existing ones. This may increase the competition and diversity of memecoins, and make them more dynamic and adaptable.
Whether meme coins are here to stay or just a passing fad remains to be seen. But one thing is certain: they have added a new dimension to the crypto landscape, and they have shown that anything is possible in this emerging industry.