No matter what generation you are a part of, if you use the internet, then you are part of meme culture. Which is honestly the fun part of this digital era. The blockchain sector takes meme to the next level with memecoins. The traditional cryptocurrencies are shaped by vision and goals but not memecoins. Meme coins are a result of humorous culture, memes and the fun side of the internet. Although the name makes it sound like non-serious projects (which they kind of are), not to underestimate their impact, dogecoin reached a $80Billion market cap in 2021. Now, projects like pump.fun have contributed even more in democratization of these memecoin projects.
Memecoins have continued to solidify their position as a significant and dynamic component of the cryptocurrency market. As of 2025, memecoins account for approximately 4.2% of the total crypto market capitalization, with their combined valuation reaching $150 billion. Memecoins are responsible for 15-20% of all blockchain transactions, making them one of the most active sectors in the crypto space. They account for 25% of the total trading volume on centralized exchanges (CEXs) and 30% on decentralized exchanges (DEXs).
Source: Artemiz
What Are Memecoins?
Memecoins are cryptocurrencies inspired by internet memes, jokes, or pop culture. Unlike Bitcoin or Ethereum, which were created with serious technological and financial goals, memecoins often start as lighthearted projects. They thrive on community engagement, viral marketing, and social media hype.
‘’Doge’’ The First Meme Coin
The first and most famous memecoin is Dogecoin (DOGE), created in 2013 by software engineers Billy Markus and Jackson Palmer as a parody of the cryptocurrency boom. As you can guess, it was a meme, but it gained popularity.
Source: X.com
In its initial years, Dogecoin maintained a low profile. It was valued at fractions of a cent, with its market activity driven by community-led initiatives and tipping on social media platforms. Between 2013 and 2017, Dogecoin’s price remained relatively stable, with occasional spikes during broader cryptocurrency market rallies.
In 2019, Elon Musk declared ‘’Doge’’ as his favourite cryptocurrency.
From here on, doge gained even more popularity, reached an All-time high on May 08, 2021 at $0.7376. This was an effect of Elon Musk posting about Doge ahead of his SNL performance and then mentioning the coin on the show as well.
Caption: Dogecoin price chart
Source: CoinMarketCap
Fast forward to 2025, Elon Musk has taken doge from memecoin to a govt sector department for U.S.
Why Use Memecoins?
Economies have seen an increasing interest in memecoins. Several factors contribute to this trend:
a) Accessibility and Affordability
Many people in emerging markets lack access to traditional financial systems or have limited options for wealth generation. Memecoins are often inexpensive to purchase, making them attractive to retail investors looking for quick profits.
b) Social Media and Community Influence
Memecoins thrive on hype and community engagement, often driven by platforms like X (formerly Twitter), Reddit, and Telegram. Influencers and celebrities have played a major role in promoting memecoins, leading to massive retail investor participation.
c) Political and Ideological Influence
In January 2025, Donald Trump launched $TRUMP, a memecoin on the Solana blockchain ahead of his presidential inauguration. With a market capitalization exceeding $10 billion within a few days, this marked the first time a U.S. president introduced a cryptocurrency. The token, backed by Trump-linked entities, blurs the line between politics and financial speculation, showing how memecoins can be used for more than just entertainment.
Risks and Challenges of Memecoins
Despite their popularity, memecoins come with significant risks, especially for investors in emerging markets.
a) High Volatility and Speculation
Memecoins experience extreme price fluctuations, often rising and crashing within days or weeks. For example — Dogecoin surged from $0.004 in early 2021 to $0.73 in May, only to drop back to $0.20 within months. Investors with low financial literacy often struggle to manage such volatility, leading to massive losses.
Source: https://x.com/dubzyxbt/status/1881960040153620577
b) Market Manipulation and Pump-and-Dump Schemes
Many memecoins rely on hype rather than fundamental value, making them prone to pump-and-dump schemes where early investors sell off, leaving retail investors at a loss. For example — Various low-cap memecoins launched on Solana in late 2023 gained attention only to crash within weeks due to rug pulls (where developers exit after raising funds).
c) Regulatory Uncertainty
Governments in India, China, and the U.S. have expressed concerns over speculative tokens like memecoins, often warning investors about their risks. Political figures launching coins, such as Trump’s $TRUMP token, raise ethical concerns and could attract regulatory scrutiny.
d) Lack of Utility and Long-Term Value
Unlike stablecoins or DeFi tokens, most memecoins lack real-world applications, relying solely on community-driven momentum. While Dogecoin has gained some acceptance for payments (Tesla and AMC accept it), most memecoins fade into obscurity once hype dies down.
Source: https://x.com/cryptobuilder_/status/1873702447493070971
What Drives The Market Sentiment?
The memecoin market sentiment remains highly speculative, with waves of bullish excitement followed by deep crashes.
a) Political and Social Influence
The Trump Coin ($TRUMP) launch in 2025 has set a new precedent—political figures may use memecoins to mobilize supporters and generate financial momentum. Similar political and ideological coins may emerge, as one did with Melania Trump coin, leading to new forms of crypto-backed political funding.
But as cryptocurrencies are permissionless, anyone can create coins in anyone’s name so always DYOR.
b) Continued Retail Interest and Celebrity Influence
Figures like Elon Musk, Mark Cuban, and now Donald Trump will continue to play roles in influencing the market. Social media trends and viral engagement will dictate price movements more than actual utility.
Even Hanks couldn’t stay separated from this madness!
https://x.com/coingecko/status/1883729967454020031
c) Memecoins as Entry Points to Crypto
For many first-time investors, memecoins serve as a gateway into the broader cryptocurrency world. Once they understand market risks, some investors move into more stable crypto assets like Ethereum, Bitcoin, and DeFi tokens.
Pump.fun: Democratizing Memecoin Creation
Launched in January 2024 by the pseudonymous founder Alon, Pump.fun is a Solana-based platform that enables users to create and launch memecoins effortlessly, without requiring technical expertise. The platform’s user-friendly interface allows individuals to mint tokens in minutes at no cost, leading to the creation of over 5.1 million tokens to date.
Pump.fun’s accessibility has made it particularly appealing in emerging markets, where traditional financial systems may be less accessible. By lowering the barriers to entry, the platform empowers individuals to participate in the crypto economy, fostering innovation and financial inclusion.
Despite its contributions, Pump.fun has faced significant challenges:
- High Failure Rate: Approximately 98.5% of tokens created on the platform fail to list on decentralized exchanges, rendering them illiquid and potentially worthless.
- Scams and Rug Pulls: The platform has been associated with fraudulent activities, including rug pulls where creators abandon tokens after inflating their value. Notably, a teenager profited $50,000 from such a scheme, leading to community backlash.
- Livestream Feature Abuse: Initially, Pump.fun introduced a livestreaming feature to promote tokens, which led to extreme stunts by creators to attract attention, prompting the platform to disable this feature amid regulatory concerns.
Source: https://x.com/lynk0x/status/1881491044015178099
With the launch of pump.fun, the memecoin market saw even more surge.
Conclusion
The rise of memecoins in emerging markets highlights the intersection of finance, technology, and social influence. While these assets offer accessibility and the potential for rapid gains, they also come with significant risks, including volatility, manipulation, and regulatory uncertainty. As more figures—both in entertainment and politics—enter the memecoin space, the landscape will continue evolving. However, for investors, the key to navigating this space is education, due diligence, and risk management.
With expertise in blockchain security, development, and consultation, BlockApex helps businesses, developers, and investors navigate the complexities of blockchain ecosystems. Whether you want to build your own memecoin or want to assess memecoin scams, rug pulls, and market manipulation, contact Blockapex today!
