The Internet has certainly given birth to strange phenomena over the years. From trolling and the cinnamon challenge to planking and the Harlem Shake, it seems that something new is always waiting around the next (digital) corner. The increasing popularity of meme coins is yet another example that has taken centre stage in recent times.
However, the "term" meme is actually nothing new. Its origins can be traced back to a book written by Richard Dawkins in 1976 titled "The Selfish Gene”. Dawkins introduced the word "meme" as a way to describe concepts introduced to mainstream culture, and that can change over time. He likened these to the human genome; hence the similar spelling.
All semantics aside, we still need to ask why some have already termed 2025 "the year of the meme coin". Are these quirky digital assets here to stay? What makes them so unique? Do meme coins contain any real value, or are they nothing more than smoke and mirrors wrapped up in attractive packaging? If you're curious to learn more about the latest investment trends, or you are considering a venture into the cryptocurrency marketplace, be sure to keep reading.
What is a Meme Coin?
We should first take the time to differentiate a meme coin from a standard cryptocurrency token. Meme coins are essentially intangible digital assets that have been hyped by social media circles, and other influencers. As a result, their allure tends to be short-lived. Some have even come to be known as catchy one-off jokes. Others (such as the $Trump coin) are even used to promote political agendas. However, the intrinsic value of meme coins is often questionable at best (although we'll examine some exceptions to this rule a bit later).
On the other hand, mainstream cryptocurrency tokens can be openly bought and sold. This results from a substantial amount of supply and demand. Unlike tokens such as Bitcoin and Ethereum, meme coins rarely possess any underlying technical purpose. This makes their appeal limited to somewhat spurious trends, and these movements can quickly fade.
What is the Appeal of Meme Coins?
In some ways, meme coins appear to offer the very same level of liquidity attributed to other online opportunities (such as partnering with cutting-edge Forex trading platforms). Assuming that one monitors a meme coin since its official launch, it is not uncommon to witness an exponential rise in value over a short period of time. On the surface, this seems to represent an excellent buying opportunity. Those with little previous investment experience could very well choose to take the plunge.
We also need to mention the psychological side of meme coins. These assets are designed around cultural trends, and some appeal to inherent belief systems. For example, the Trump coin resonated with his voters long before it was actually released. Other coins have been associated with anti-government stances, and these were obviously used to attract individuals wary about the influence of big brother. This is why the emotional side of meme coins cannot be overlooked.
A Viral Trend, or a Flash in the Pan?
Notwithstanding the inherent qualities of meme coins, why has 2025 represented a watershed year for so many of these assets? One reason involves the belief that we may soon be headed into another cryptocurrency bull market. Assuming that the values of mainstream tokens begin to rise, many feel that meme coins will reflect this very same trend. This is why meme coins have enjoyed a fair amount of attention throughout social trading circles.
Another reason why some have begun to take notice of meme coins involves the short-term nature of the investments themselves. Values that suddenly rise by more than 100 per cent over a matter of days are not entirely uncommon. So, the attraction becomes clear. However, this is when a very real problem emerges.
Paper Profits Alone?
Some meme coins have enjoyed meteoric rises that would put the average blue-chip holding to shame. So, why have we not witnessed a new generation of overnight millionaires? The answer is simple. Although prices can rise to extraordinary levels, there are very few buyers. It makes little sense to purchase a large block of meme coins if these cannot be sold. This is also why the vast majority of meme coins have little (if any) real-world trading volume. In some ways, we can liken a promising meme coin to a pink sheets (OTC) share that is predicted to perform extremely well, only to later devolve into financial oblivion.
Not All Doom and Gloom
It would be entirely unfair to classify meme coins as worthless opportunities. On the contrary, a handful have performed quite well since their launch. Here are some examples:
- Shiba Inu
- Dogecoin
- Pepe
- Floki
- Bonk
Their performance is largely due to the fact that these coins also provide some type of utility (as opposed to offering nothing more than a clever concept).
The other reason why some are keen to follow the meme coin market involves macroeconomics. A handful of analysts feel that mainstream cryptocurrencies are soon to enter into bearish territory. This could signal an influx into their meme counterparts (although such a theory has yet to be actually proven).
However, it could still be fun to monitor the performance of specific coins over time. The associated mechanics are not altogether different from those found within a demo account for trading Forex pairs, and some meme coins display similar levels of liquidity (at least on paper).
The only question remaining involves whether meme coins will continue to enjoy such a viral appeal, or they are destined to fall by the digital wayside. When we remember that the next generation of investors is often keen to examine alternative strategies, it is relatively fair to say that meme coins are here to stay.
