- 2021 is the Year of Meme Coins.
- Meme coins in nature are extremely volatile.
- The most famous memes are,, Dogelon Mars and.
The year 2021 will be the year of meme currencies. The meme coin market is continuing to grow in popularity within crypto. Dogecoin’s skyrocketing popularity (DOGE), and Shiba Inu(SHIB), is evidence of this fact.
Meme coins, cryptos that are inspired by memes and jokes on social media or the internet, are called meme coins. DOGE was the first to launch a meme coin. This meme was inspired from the Doge meme featuring a Japanese Shiba Inu.
Meme coins, unlike major cryptos such as (BTC), are extremely volatile. Because these cryptocurrencies are mostly community-driven, this is probably why they can be volatile. These cryptocurrencies’ prices can be affected by social media or FOMO. This means that they could either rise or fall overnight.
Meme cryptos also have an abundance to unlimited supply. DOGE, for example, has no limit on supply while SHIB, however, has 1 quadrillion tokens. The large supply of coins keeps the prices low because they don’t have a coin-burning device.
The COVID-19 epidemic was the catalyst for the overwhelming demand of meme coins. It began in late 2020, right after the “meme stock” saga of AMC Entertainment (NYSE:) and GameStop (NYSE:). Reddit’s community pulled off this feat by pushing the shares prices up to 100 times.
A few months later, a Reddit group joked about creating a crypto equivalent of GME–pumping the price of DOGE. This trend became so popular that Tesla CEO Elon Musk (NASDAQ:) tweeted it. DOGE prices rose as a result. The DOGE price reached a new ATH at $0.73. This was an increase of over 2000% in five days.
Elon Musk joked about DOGE in May 2021 on national TV. Some believe it caused the subsequent price fall. The traders then turned their attention to SHIB and other meme coins on the market.
Jackson Palmer, a software engineer and Billy Markus created DOGE. They were inspired by a Shiba Inu-dog meme. DOGE has no supply limit and uses the same Proof of Work mechanism (POW).
Shiba Inu is the main competitor of DOGE and it is frequently referred to as the “Dogecoin Killer”. The name of the DOGE-like dog also came from a Japanese breed. It was created by Ryoshi, an anonymous developer.
SHIB’s token supply is limited to 1 quadrillion tokens. DOGE has half of this token stock. The rest were donated or burned. Furthermore, SHIB’s ecosystem also has a decentralized exchange, NFTs, an NFT art incubator, and an NFT game.
ELON, which is the name of the coin itself, was named after Elon Musk (Tesla CEO) and SpaceX. This coin is a fork from Dogecoin. Currently, 557 trillion tokens are in circulation. ELON has grown by more than 3,780% in the three years since it was launched on April 20, 2021.
The volatility of meme coins is something we have already mentioned. Meme coins are susceptible to unanticipated pumps and dumps. The internet community will tell you whether it can crash or rise unexpectedly.
Noting that the meme cryptocurrency market is growing, it’s important to realize that scammers are also taking advantage. Traders are strongly encouraged to DYOR prior to trading or investing in meme currencies.
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