As with the cryptocurrency market, 2022 hasn't been a good year for meme coins. Dogecoin (DOGE), whose fan followers include Elon Musk, fell as much as 60 per cent this year.
Likewise, Shiba Inu (SHIB), also a meme coin, plummeted 76 per cent this year.
Dogecoin's drop has been relentless despite the Tesla chief's obscure tweets, turning the digital currency into one of the people's favourite bets. Dogecoin was launched in 2013, ridiculing the euphoria over cryptocurrencies at the time, when digital coins were yet to capture people's imagination fully.
Meme Coins’ Journey In 2022
Dogecoin's popularity hasn't diminished despite some hard times in the market. It climbed up two positions to rank eighth by market capitalisation.
"Elon Musk has had a significant impact on the trajectory of cryptocurrencies, and Dogecoin is his favourite. Musk and other influencers are playing the market in their interest," says Kumar Gaurav, founder & CEO of Cashaa, a crypto-friendly neo-bank. Depending on their stature, Kumar said influencers manipulate the market to get large instant profits.
Musk's tweets have impacted Dogecoin’s price. On June 19, 2022, Musk tweeted, “I will keep supporting Dogecoin.” He was sued for $258 billion for allegedly running a pyramid scheme to support Dogecoin.
DOGE ’s highest price was $0.1933, recorded on January 14, 2021, and the lowest price was $0.05155, registered on June 19, 2022.
However, it was not among the top most-searched cryptos in 2022. According to Binance research, Bitcoin (BTC), Ethereum (ETH), and Shiba Inu (SHIB) were the most-watched cryptos in 2022.
What Are Meme Coins?
Meme coins are cryptocurrencies inspired by popular social media jokes, sarcasm, or puns. For example, Shiba Inu and Dogecoin are popular meme coins in the market.
On the other hand, mainstream cryptos, such as Bitcoin, are created with a specific technology to boost trading, while meme coins do not have a particular use or inherent value.
“Meme coins are devoid of fundamentals. They are more of a community-driven phenomenon, a form of expression for millennials and the Gen Z generation. Hence, it has all the bells and whistles of reckless gambling. However, meme coin investing isn’t bereft of associated risks and rewards. The recent boom and bust of Squid Games token is a testament to this,” says Sharat Chandra, a blockchain and emerging technology evangelist.
Are meme coins here to stay? No one can say. He adds that they might become mainstream or suddenly die as soon as some other spectacle catches everyone’s fancy.
