A Beginner's Guide to the Top 5 Memecoins by Trading Volume
Since the launch of Dogecoin (DOGE), memecoins have carved a niche in the crypto space. In fact, as of June 21, 2024, they account for nearly $47 billion of the $2.35 trillion digital asset industry, with a 2% market share.
In this article, we will explore the top 5 memecoins, along with an introduction to meme-based cryptocurrencies, their history, as well as the potential risks and dangers of investing in them.
What Are Memecoins?
Memecoins are cryptocurrencies that are inspired by internet memes and jokes. Often identified with animal meme images (like the Doge meme) or animated characters, these digital assets are intended to provide crypto users fun, even when the market is down.
Like the memes they are based on, these digital assets are meant to go viral. For that reason, most memecoins are backed by passionate communities that are very active on social media, posting regularly and sharing memes and videos about the tokens.
The history of memecoins dates back to 2013 when software engineers Billy Markus and Jackson Palmer created Dogecoin (DOGE) as a fun project to mock the wild speculation in the crypto market at the time. Due to its active community and support from celebrities like Elon Musk, Gene Simmons, and Snoop Dogg, DOGE started to take off in late 2020, marking the start of the memecoin mania characterising 2020's and 2021's bull market.
With the increased popularity of Dogecoin, multiple memecoin projects have followed in DOGE's footsteps and rolled out their meme-based cryptocurrencies. However, not all were successful, and many were involved in pump-and-dump and other fraudulent schemes. Examples of meme tokens that were launched at the time and have remained popular today include Shiba Inu (SHIB) and Floki Inu (FLOKI).
While Dogecoin has its own blockchain, most memecoins have launched on Ethereum, Solana, and Base.
The Risks of Investing in Memecoins
Due to their community-driven nature, the hype surrounding them, and the fact that many have no practical use cases beyond speculation, memecoins are high-risk assets that tend to be subject to extreme volatility.
Moreover, while legitimate meme-based tokens are present on the market, fraudsters have been exploiting the memecoin frenzy and investors' fear of missing out (FOMO) to mislead investors. With their strategies ranging from exit scams to pump-and-dump schemes and rug pulls, these fraudulent projects lure unsuspecting users with memes and bullish social media posts to later leave with victims' funds.
Even if memecoin projects are not fraudulent, many do not follow best practices around security. According to a recent report by Cointelegraph's Magazine, one in six newly launched Base memecoins is a scam. While 90.8% of the 1,000 analysed tokens have at least one security vulnerability, 90.5% lack locked liquidity, and 23.2%'s contracts are unverified.
Unaudited smart contracts significantly increase the risks of potential hacks. At the same time, locking a part of a cryptocurrency's liquidity in contracts minimises rug pull risks and offers users a more seamless trading experience.
Due to the above, it is critical for every crypto investor to do their own due diligence before gaining exposure to a memecoin. Moreover, meme-based cryptocurrencies involve very high risks, so it is advised to invest only what you can afford to lose.
The Top 5 Most-Traded Memecoins of 2024
Now that you know what memecoins are and the risks involved with such investments, let's see the top 5 meme-based tokens by trading volume (as of June 21, 2024).
1. Pepe (PEPE)
As of June 21, 2024, Pepe (PEPE) is the top memecoin by 24-hour trading volume, which stands at $785.84 million at the time of writing. At the same time, PEPE has a $4.53 billion market cap, making it the 23rd largest cryptocurrency (by market capitalisation).
Launched in April 2023, PEPE (also known as Pepe Coin) is an Ethereum-based memecoin inspired by the Pepe the Frog meme. Regarding the latter, there has been some controversy around the meme's use in white supremacist and far-right circles, which has resulted in the Anti-Defamation League (ADL) adding it to its database of hate symbols.
However, multiple members of the PEPE community have stood up to defend the memecoin. In fact, one Twitter (X) user argued that "the $pepe movement is about love, equity, & a protest against VC-backed entities/influencers that have been criminally taking advantage of the web3 community for the past 2 years."
Historical price chart of Pepe (PEPE). Source: CoinMarketCap
Since its launch on April 17, 2023, PEPE's price has increased exponentially, featuring an all-time return on investment (ROI) of nearly 16,300%. However, it's important to note that the majority of this growth could be attributed to this year's memecoin frenzy.
Until February 23, 2024, PEPE's all-time ROI stood at 790%. But, later that month, as the hype around memecoins started to increase, the cryptocurrency entered into a significant bull run. As a result, its value surged from $0.000001212 to as high as $0.0000167 on May 28 (representing a 1,277% growth) before dropping to $0.00001079 on June 21.
2. Dogecoin (DOGE)
Dogecoin (DOGE) is the original memecoin, which was launched on December 6, 2013. With over 10 years of history, DOGE has remained the top meme-based cryptocurrency by market capitalisation (it is the eighth top coin among all digital assets). With $645.7 million in the last 24 hours, it features the second-highest trading volume among memecoins.
What started out as a joke of two software engineers back in 2013 has turned into a project with a $17.92 billion market capitalisation. Unlike most other memecoins, Dogecoin has its own blockchain, forked from a digital asset called Luckycoin, which is also a fork of Litecoin (which is a fork of Bitcoin).
As of today, Dogecoin is backed by a strong community, has been adopted and supported by numerous celebrities and millionaires, and has been involved in multiple initiatives. Examples include the planned DOGE-1 CubeSat mission to the Moon and sponsoring the Watford Football Club.
Historical price chart of Dogecoin (DOGE). Source: CoinMarketCap
In terms of price action, Dogecoin's all-time ROI stands at nearly 41,200%. A notable period in the cryptocurrency's history includes the bull market of 2020 and 2021, when the hype around the project pushed DOGE's value from $0.003405 on November 29, 2020 to as high as $0.5811 on May 7, 2021.
Despite new meme-based tokens gaining traction, Dogecoin has also benefited from the ongoing memecoin frenzy, increasing its price from $0.086 on February 25 to a high of $0.22 on April 1. Since then, DOGE's value has fallen to $0.1221.
3. dogwifhat (WIF)
dogwifhat (WIF) is the third-largest memecoin by 24-hour volume and the 4th by market capitalisation. While the former stands at $385 million, its market cap equals $1.83 billion.
Described as "literally just a dog with a hat," dogwifhat is a Solana-based memecoin that launched in November 2023. Just like SHIB and DOGE, it is based on Shiba Inu dog memes and has been at the centre of the renewed hype around meme-based tokens.
Historical price chart of dogwifhat (WIF). Source: CoinMarketCap
Between December 19, 2023 and June 21, 2024, WIF's price has increased tenfold, with most of the growth taking place between late February and early April. After some correction, the memecoin is currently trading at $1.85.
4. Floki Inu (FLOKI)
Floki Inu (FLOKI) is a multichain memecoin on Ethereum and BNB Chain that was launched in July 2021. It is currently ranked the fourth meme-based token by trading volume ($296.12 million) and the fifth by market capitalisation ($1.59 billion).
Historical price chart of Floki Inu (FLOKI). Source: CoinMarketCap
Inspired by Elon Musk's Shiba Inu dog (also named Floki), FLOKI capitalised on the hype around memecoins and Musk's support for such projects during 2021's crypto market. Despite a steep fall after a brief bull run in late 2021, the cryptocurrency's price has recovered most of its losses in March 2024. After nearing its all-time high at $0.0003118, FLOKI entered into correction territory, trading at $0.0001667 on June 21.
5. Shiba Inu (SHIB)
Created by the anonymous Ryoshi in August 2020, Shiba Inu (SHIB) is an Ethereum-based dog-themed memecoin that became the first major competitor of Dogecoin after its launch. Thus, like DOGE, it is considered a "blue chip" meme-based token by many in the crypto industry.
Despite claiming the second rank by market cap among memecoins (and the 12th among all cryptocurrencies), SHIB is only the fifth most traded meme-based token, featuring a volume of $294.26 million. At the same time, its market capitalisation is standing at $10.43 billion.
Historical price chart of Shiba Inu (SHIB). Source: CoinMarketCap
Interestingly, SHIB features a whopping 1,759,067% ROI since its launch in August 2020. Similarly to FLOKI and DOGE, it benefited from the memecoin mania during the 2020-2021 bull run, increasing its price by over 143,000% between April 3 2021 and November 2, 2021. Moreover, Shiba Inu has had a 72.14% year-to-date (YTD) ROI this year after a rise to $0.00003592 in March and a correction down to $0.0000178 by June 21.
Trade Cryptocurrencies on VALR
In the past few years, memecoins have become a significant market sector in crypto. However, investors should be aware of the very high risks related to their limited utility, extreme volatility, hype, potential illicit schemes, and security vulnerabilities. Thus, we can't stress enough that you should do your own research before interacting with them.
Just like other cryptocurrencies, memecoins like SHIB, DOGE, BONK, BOME, and WIF are available on VALR. Head to this page to start trading!
Frequently Asked Questions (FAQ)
What memecoins can I buy on VALR?
You can buy Dogecoin (DOGE), Shiba Inu (SHIB), Book of Meme (BOME), Bonk (BONK), and dogwifhat (WIF) on VALR.
What Solana memecoins does VALR have?
Currently, VALR has listed the following Solana-based memecoins:
Book of Meme (BOME)
Bonk (BONK)
dogwifhat (WIF)
How many memecoins does VALR have?
You can currently trade five different memecoins onVALR: Dogecoin (DOGE), Shiba Inu (SHIB), Book of Meme (BOME), Bonk (BONK), and dogwifhat (WIF).
What is an example of a memecoin?
An example of a memecoin is Dogecoin (DOGE), which was created as a joke but has gained significant popularity and market value. Other examples include Shiba Inu (SHIB) and Floki Inu (FLOKI).
What is the point of memecoins?
The point of memecoins is to provide a fun and light-hearted alternative to traditional cryptocurrencies. They often rely on viral internet memes and active social media communities to gain popularity. Memecoins are primarily driven by community hype and social media activity, rather than having a serious underlying technology or use case.
How do you identify a memecoin?
You can identify a memecoin by its association with internet memes, jokes, or animated characters. They often have names and logos inspired by popular internet culture and are heavily promoted on social media platforms. Memecoins typically have strong community backing but lack serious underlying use cases compared to other cryptocurrencies.
What causes memecoins to rise?
Memecoins rise due to social media hype, community engagement, celebrity endorsements, and speculative trading. The influence of high-profile individuals, such as Elon Musk's tweets about Dogecoin, can significantly drive up the value. Their price increases are often fueled by the Fear Of Missing Out (FOMO) among investors.
What is the difference between a memecoin and a coin?
The difference between a memecoin and a regular cryptocurrency is that memecoins are created primarily for fun and are based on internet memes and jokes, while regular cryptocurrencies are typically developed with specific technological innovations, utility, or use cases in mind. Memecoins often lack serious long-term value propositions and are more susceptible to market speculation and volatility.
What are the oldest memecoins?
The oldest memecoins include Dogecoin (DOGE), which was launched in December 2013, and Shiba Inu (SHIB), which was launched in August 2020. These coins have remained popular over time and have inspired numerous other meme-based cryptocurrencies.
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.
VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
