What is a Memecoin? From Dogecoin to Dogwifhat

In the early days of cryptocurrency, things were fairly serious. Bitcoin aimed to fix money with a decentralized system, and Ethereum tried to build a global computer for apps and smart contracts.

Then Dogecoin showed up.

Launched in 2013 as a joke that poked fun at how self-important crypto had become, it used a Shiba Inu dog from a viral meme as its mascot.

The joke did not fade. It turned into a multi-billion dollar market segment that ignores most traditional financial logic. Today, memecoins sit at the center of crypto trading, where value comes from humor, community strength, and attention, not from cash flow or complex technology.

Defining a Memecoin

A memecoin is a cryptocurrency whose value is tied to internet memes, viral trends, or pop culture references.

Unlike a utility token, which might let you use a specific app or platform, or a store-of-value asset like Bitcoin, memecoins are driven mostly by social mood and hype.

They often run on advanced blockchains and can use the same infrastructure as serious projects. In practice, though, their core purpose is usually engagement, speculation, and entertainment.

If the community is loud, active, and growing, prices tend to climb. When interest fades, prices can crash extremely fast, sometimes all the way down to nearly zero.

The psychology of "unit bias"

Most memecoins have huge total supplies, often in the billions or trillions of tokens. That leads to tiny prices per coin, such as $0.00001.

This plays into something called "unit bias." Many people feel better buying a million units of a cheap token than a small fraction of a more expensive one like Bitcoin, even if they put in the same amount of money.

Holding a large number of tokens can feel more satisfying, even though it does not mean the investment is better or safer.

The major players

The memecoin market has grown far beyond one dog mascot. Here are some of the best-known projects that help define the category.

Dogecoin (DOGE)
Dogecoin is the original memecoin. It runs on its own blockchain, which is a fork of Litecoin, and not on Ethereum or Solana like many newer tokens.

Over the years, it has been publicly supported by high-profile figures such as Elon Musk. It is sometimes used for real payments, tipping, and small transfers, helped by relatively low fees and quick confirmations.

Shiba Inu (SHIB)
Shiba Inu launched on Ethereum and branded itself as the "Dogecoin Killer." It started as another dog-themed joke, but the team tried to expand it into a broader ecosystem.

Developers released ShibaSwap, a decentralized exchange, and Shibarium, a Layer 2 network, in an effort to add more real-world use cases and move SHIB beyond pure meme status.

Pepe (PEPE)
Pepe launched in 2023 and leaned fully into being a pure memecoin. It is based on the long-running "Pepe the Frog" internet character.

Unlike SHIB, Pepe did not focus on building products or complex features. Its appeal came from name recognition, meme culture, and the energy of traders who were looking for high-risk, high-reward moves.

Bonk (BONK) and Dogwifhat (WIF)
BONK and dogwifhat highlight how important the Solana blockchain became in the 2024–2025 cycle.

Bonk launched with a large airdrop to Solana users after a major market downturn. The goal was to bring attention back to the ecosystem and reward early supporters.

Dogwifhat, often written as WIF, is built around a simple image of a dog in a pink knitted beanie. That basic, absurd visual became a symbol of how random and humorous memecoin culture can be, yet it still attracted serious trading volume.

How it works in practice

To really understand memecoins, it helps to think of them less like tech startups and more like social networks or online fan clubs.

The launch and viral spread
On fast and cheap blockchains such as Solana, a new token can be created in minutes. A developer might spin up a token linked to a viral clip, a celebrity moment, or breaking news.

They then add liquidity so that the token can be traded and start pushing it on platforms like X (formerly Twitter), Telegram, or Discord. Early holders try to generate attention as quickly as possible.

Community takeover
The success of a memecoin often depends on building a loyal, almost fanatical community. Holders jump into replies, post memes, and encourage friends and followers to join in.

This kind of unpaid promotion is called "shilling." If the story around the token catches fire, a feedback loop starts. Prices rise, more people notice, fear of missing out (FOMO) kicks in, and new buyers push prices even higher. The same process can run in reverse when interest dies.

The "Supercycle" shift
In 2024 and 2025, many traders began referring to a "Memecoin Supercycle." During this period, memecoins outperformed a lot of serious infrastructure and DeFi projects, at least over short time frames.

New themes appeared too. PolitiFi tokens made fun of political figures and election drama. AI-related memecoins experimented with bots and agents that tried to market or trade their own tokens on social media.

Risks and red flags

Memecoins are widely seen as one of the riskiest corners of the crypto market. For every token that briefly explodes in price, there are thousands that never recover after the first hype wave.

• Extreme volatility: It is common for a memecoin to fall 50% in an hour or double in a single day. This cuts both ways. Many people buy during peak excitement and watch their investment collapse once attention moves on.

• Rug pulls: Creating a token is cheap and simple, which attracts scammers. In a rug pull, the team or early insiders encourage people to buy, then remove the liquidity or sell their entire holdings at once. This usually sends the price straight toward zero and traps late buyers.

• Concentration risk: In many memecoins, a small group of large holders, known as whales, control a big slice of the supply. If they decide to sell, the selling pressure can overwhelm the market and cause a rapid, sharp crash.

• Lack of staying power: Most memes do not last. When a joke stops being funny, trading volume tends to fall and liquidity often disappears. Only a very small number of memecoins manage to stay relevant across multiple market cycles.

Why memecoins matter

Even with all the risk, memecoins have become a lasting part of crypto.

They act as an on-ramp for many first-time users in the US and elsewhere, who might not care about mining, staking, or complex smart contracts, but are curious about a trending token on X or TikTok. That attention pushes people to learn how to use digital wallets, centralized and decentralized exchanges, and basic crypto security.

Memecoins should still be treated with caution. They are speculative, largely driven by social media, and can lose value quickly.

At the same time, they show what happens when internet culture and open financial systems collide. In many ways, memecoins are the raw, unfiltered version of online attention being turned into money.