Meta: Have you ever speculated as to why meme coins are consistently popular? If so, continue reading to find out everything you could ever want or need to know.
If you keep up to date with the latest news to emerge from the fast-growing cryptocurrency industry, you may have become aware of a number of meme coins to land on the market in the past couple of years. In 2013, for example, Dogecoin was launched by IMB software engineer Billy Markus and Adobe software engineer Jackson Palmer in an attempt to establish a peer-to-peer digital currency that would eventually surpass Bitcoin.
It ended up attracting over a million visitors within its first 30 days and launched something of a meme coin revolution by paving the way for inexperienced investors and like-minded individuals alike to follow suit. To find out why meme coins are consistently popular, continue reading.
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They benefit from virality
In 2020, a viral TikTok challenge saw Dogecoin’s volume spike by a staggering 683% and trigger a spending spree with both experienced and inexperienced cryptocurrency investors scrambling to grab a slice of the action and become a part of digital currency history. This led to its price soaring by up to 71% with the fundamental goal later revealed to be to push the value of the coin to $1 per coin. It may have caught the attention of some of the industry’s most prolific investors, but it also pointed to the virality of meme coins and their uncanny ability to start a movement by triggering something of a domino effect across social media in a mere matter of minutes.
In 2021, however, Dogecoin faced tough competition in the form of Shiba Inu, a digital currency designed to rival that of its competitor by bearing a striking resemblance to Dogecoin’s titular character and achieving record-breaking levels of growth in the weeks following its viral debut. If a meme coin relates or responds to a current trend or concept, for example, it is more likely to incite widespread publicity and public excitement which, in the cryptocurrency world, is crucial to the virality of a particular digital currency.
They are long-term investments
It may not necessarily be your best bet for a lower-risk investment but by investing in meme coins as opposed to better-known altcoins, for example, you are more likely to ride the wave and experience the true volatility of cryptocurrency on a long-term basis as opposed to in an attempt to make a quick buck.
This can, therefore, be a great way to diversify your existing cryptocurrency investment portfolio as an experienced investor without having to worry about its value suddenly plummeting with no forewarning. If you are an inexperienced cryptocurrency investor, it may, therefore, be worth viewing meme coin investments, and Dogecoin investments in particular, as long-term investments whilst continuing to keep a close eye on their market volatility on an ongoing basis.
In 2022, for example, there are over 250 meme coins battling for the attention of cryptocurrency investors and dominance of the cryptocurrency sphere with the vast majority largely inspired by previous meme coins or designed as part of an elaborate scam to capitalise on a current trend or movement.
They are familiar
In the cryptocurrency world, it can be difficult to know which digital currencies are worth your attention and which are perhaps worth avoiding. If a digital token emerges that references a popular trend or movement, for example, inexperienced cryptocurrency investors are more likely to get involved if they recognise or identify with its name, logo, or message.
This is one of the main reasons why meme coins have exploded in popularity in recent years and will more than likely continue to do so for years to come or until cryptocurrency eventually breaks into the mainstream on a global scale. It can, however, be easy to get lost in the excitement of meme coins and fail to conduct background research on the development team behind the success of the digital token. If you are an experienced cryptocurrency investor, for example, you will be familiar with how important this step can be when it comes to predicting how a particular coin will perform down the line.
It may, therefore, benefit you to take the time to unravel the identity behind a meme coin before jumping the gun by studying its economics, or tokenomics as it has become otherwise known, in advance.
They are new
It may have been 2009 when the first cryptocurrency was launched into the public eye but with a slow but steady infiltration into the mainstream in the years since, it remains a relatively modern phenomenon for the vast majority of people. The introduction of meme coins is, therefore, an even newer phenomenon with the trend unlikely to fade into obscurity or disappear forever any time soon as cryptocurrency continues to steadily infiltrate a growing number of global industries and sectors in the coming years.
If you are familiar with meme coins, you may be wondering why they have remained consistently popular since they first exploded into the mainstream a number of years ago. This is, however, mainly due to the fact that they benefit from virality, they are long-term investments, they are familiar, and they are new.
