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John Martin 27 Apr 2024 ◦ 12 min read

Dog days: dog-themed memecoins' lasting popularity and the reasons behind it

Dog days: dog-themed memecoins' lasting popularity and the reasons behind it

Dogecoin, the first meme coin, was initially a lighthearted poke at the cryptocurrency market. However, it quickly garnered a community of crypto enthusiasts, who viewed it as a playful and amicable Internet currency.

The dog-themed meme coins, such as Shiba Inu, Bonk, Dogwifhat, and FLOKI, led by Dogecoin, have achieved high market capitalization and have seen their prices skyrocket, making some investors wealthy while also signaling potential opportunities for others.

Despite lighthearted origins and significant risks owing to the volatile nature of meme coins, and limited utility, investing in dog-themed meme coins comes with enduring popularity.  In this text, we will delve into the factors contributing to their widespread appeal.

What is a meme coin?

Memcoins are a type of digital currency used in online communities to reward users for creating engaging content or to participate in various activities.

"Memcoins" is a term in the cryptocurrency world that refers to tokens supported exclusively by an online community of followers and traders. Simply put, they are based on hype and not utility.

These coins are usually associated with famous memes, such as Doge, Pepe, and Chad. Although meme coins can be fun and sometimes bring significant profits, they are considered risky investments, primarily because of the lack of intrinsic value and their enormous volatility.

Unlike Ethereum and other practical cryptocurrencies, memcoins function primarily as trading instruments. Consequently, prices are determined solely by speculative actions in the market.

Why do people buy meme coins?

Some people invest in meme coins solely for entertainment purposes, whereas others are guided by the potential for financial gain. Yes, meme coins have shown significant value spikes, and there are many success stories in which people have become millionaires by investing in small amounts. At the same time, many people have lost money to invest in such coins. Let us be honest: memcoins are essentially a cryptocurrency casino, making it impossible to discuss any significant prospects or technologies here.

The rise of Dogecoin

Dogecoin was created in 2013 as a lighthearted response to the wild speculation prevalent in the cryptocurrency market.

The community formed around Dogecoin saw it as a way for new investors to learn about and experiment with the technology without the high stakes associated with Bitcoin.

Dogecoin was marketed as a fun and friendly Internet currency, emphasizing use cases over prices.

Other dog-themed memecoins

Dogecoin's popularity sparked a wave of cryptocurrencies featuring the image of a dog, resulting in the emergence of dog-themed coins, which existed long before that.

Bonk (BONK)

Blockchain: Solana;

Capitalization: $1.5 billion (as of March 2024)

Maximum price: $0.000037

Minimum price: $0.00000014

Emission: 93 trillion.

Bonk is the first "dog" meme coin created on the Solana blockchain. Approximately half of the initial airdrop emissions were transferred to the community in this ecosystem. This was done to support the Solana ecosystem after the sharp collapse of the coin's exchange rate. Indeed, the appearance of BONK provoked activity in the ecosystem, such as the release of new mem tokens, coin-burning campaigns, the creation of NFT collections so on.

Shiba Inu (SHIB)

Blockchain: Ethereum;

Capitalization: $16 billion (as of March 2024)

Maximum price: $0.000072

Minimum price: $0.00000000017;

Emission: 589 trillion.

Unsurprisingly, the next most popular memtoken was associated with dogs. It is simply named after the breed that gave birth to the DOGE: Shiba Inu. Half of the token issue burned shortly after the coin was issued.

The development team simply sent these funds to the wallet of Vitalik Buterin (the creator of Ethereum and, according to some conspiracy theories, one of the two creators of the SHIB). The authors of this cryptocurrency launched their own decentralized exchange, ShibaSwap, in 2021.

dogwifhat (WIF)

Blockchain: Solana;

Capitalization: $2.7 billion (as of March 2024)

Maximum price: $3.4;

Minimum price: US$ 0.078.

Issue: 998 million

Again, a dog of the Shiba Inu breed. This time, the cap contains the name of the token in English with an error meaning "dog with a hat.”

The creators have never claimed the serious status of the coin and insisted that the name of this cryptocurrency should always be written in a small letter. It is with the WIF that the famous story is connected, and how a trader who bought a new meme coin for about $310 for fun turned it into $1.4 million in a few months.

FLOKI (FLOKI)

Blockchain: Ethereum;

Capitalization: ~$2.2 billion (as of March 2024)

Maximum price: US$ 0.0003.

Minimum price: $0.0000014

Issue: 9 trillion.

It would be surprising if, after Elon Musk announced that he had named his dog (of course, Shiba Inu) Floki, someone would not have issued a corresponding token.

The deflationary coin (holders receive profit simply for storing coins) immediately entered a scandal. The main developer took 20% of each transaction and sent them to the wallet. It was then that the Floki Inu project was taken over by a well-known crypto community calling itself Vikings, and the token was renamed FLOKI.

After that, the cryptocurrency began to be positioned not just as another meme but as a useful project and a potential competitor to well-known digital currencies.

What is the "Memcoin Season?”

In the context of cryptocurrencies, the term ‘season’ usually refers to a period when there is increased interest in a particular type of financial instrument. 

During an "altcoin season," alternative cryptocurrencies to Bitcoin perform well in the market, are actively traded, and increase in capitalization.

This concept is somewhat similar to traditional terms like "bull season," which refers to a period of rising prices and optimistic market sentiment. During the "bear season," there is a prolonged period of declining stock prices and pessimistic market sentiments.

The term ‘memcoin season’ is relatively new. During a meme coin mania, cryptocurrencies or other digital assets that have significant backing on social media platforms experience a surge in popularity and hype.

The risks of investing in dog-themed memecoins

Meme coins are often referred to as "shitcoins," created primarily for fraud or speculative purposes in the market. This raises significant doubts regarding the wisdom of investing in such coins.

Nevertheless, some members manage to develop thriving communities and extensive ecosystems, transforming them into potential opportunities for profit. Meme coins are uniquely intertwined with public sentiment and cultural trends, exerting a strong influence on their values through hype.

However, it is important to note that this influence is not always positive. For example, Elon Musk's tweet, in which he did not recommend investing in Dogecoin solely because of curiosity, caused an instant collapse in the price of $DOGE.

Like other meme-based cryptocurrencies, dog-themed meme coins are generally not serious or substantive projects. These are typically created by copying and pasting codes from another type of cryptocurrency.

They tend to need more significant developer communities, which hinders their ability to stay secure and technologically up-to-date. Dogecoin development, for example, has come to a near standstill at various points throughout its history.

Many meme coins are owned by small groups of people who hold large quantities of them, which can significantly impact the market because of their thin liquidity pools, which are highly volatile and significantly influenced by social media sentiments and "FOMO" (fear of missing out).

The future of dog-themed memecoins

Despite these risks, dog-themed meme coins continue to attract investors because of their potential for high returns and the entertainment they provide.

As the cryptocurrency market evolves, it remains to be seen how dog-themed meme coins adapt and whether they will maintain their popularity in the long term.

Conclusion

The popularity of dog-themed meme coins, such as Dogecoin and Shiba Inu, surged following the success of "meme stocks" like GameStop and AMC Entertainment. Influencers like Elon Musk have played a significant role in amplifying their popularity through social media mentions and endorsements. The low cost of these coins, often just a few cents, allows investors to buy large quantities with minimal investment, fueling the belief in significant profit potential. Additionally, the community aspect and the novelty of dog-themed coins, inspired by internet memes, contribute to their widespread appeal and popularity in the cryptocurrency market.

After that, dog-themed meme coins have captured the attention of retail investors and crypto enthusiasts alike because of their fun and friendly nature, as well as their potential for high returns.

However, it should be noted that meme coins can be profitable investments if the investor is prepared to react quickly to market events, closely monitor public sentiment, and actively participate in shaping a positive perception of the token. Judging by the daily trading volume of meme coins, which exceeds billions, it is safe to say that this category of cryptocurrencies has promising prospects. However, do not forget that meme coins have no long-term value and carry the risk of financial losses.

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