What Are Meme Coins? From DOGE to SHIB, PEPE to PENGU — The Hype, the Culture, and the Risk
Introduction
TradingKey – In July 2025, Pudgy Penguins (PENGU) surged over 400% in just one month, reigniting investor interest in meme coins and sparking a new wave of speculation. As retail traders hunt for the next breakout token, it’s worth revisiting what meme coins are, how they evolve, and why they continue to dominate headlines despite their volatility.
What are Meme Coins?
Meme coins are cryptocurrencies inspired by internet culture — often humorous, ironic, or satirical in nature. Unlike Bitcoin (BTC) or Ethereum (ETH), which aim to solve technical or financial problems, meme coins thrive on community hype, viral storytelling, and low entry barriers.
Feature | Meme Coins | Traditional Cryptos |
Development Team | Often anonymous or nonexistent | Professional and well-funded |
Volatility | Extremely high (±50% daily swings) | Relatively lower |
Motivation | Driven by internet culture & humor | Driven by utility and innovation |
Technical Complexity | Low — often forked from existing code | High — custom protocols and upgrades |
Evolution of Meme Coins
- DOGE (2013): Created as a joke by IBM and Adobe engineers, Dogecoin (DOGE) exploded thanks to Reddit and Elon Musk’s tweets.
- SHIB (2020): Dubbed the “DOGE killer,” Shiba Inu launched with a massive supply and gifted half to Vitalik Buterin, who burned most of it.
- PEPE (2023): A pure meme play with zero utility, PEPE soared 5,000x in three months, fueled by zero-tax trading and cultural resonance.
- PENGU (2024–2025): A governance token for the Pudgy Penguins NFT brand, launched on Solana. It surged 450% from $0.008 to $0.045 in June–July 2025, driven by low gas fees and retail speculation.
Current State of the Meme Coin Market
According to the latest data, the meme coin sector continues to grow in scale and influence within the broader crypto ecosystem:
- Total Number of Meme Coins: 4,679
- Combined Market Cap: Over $60.87 billion
- Share of Total Crypto Market: Approximately 1.76%
- Ranking Among All Crypto Sectors: #29 out of 114, placing meme coins in the upper-middle tier
MEME coin total market capitalization, source: CoinMarketCap
Dogecoin remains the dominant force, with a market cap nearly equal to the combined value of all other meme coins. SHIB and PEPE follow as strong contenders, each backed by vibrant communities and evolving ecosystems.
Top 10 MEME coins by market capitalization, source: CoinMarketCap
Why Meme Coins Go Viral
Cultural Narrative
- Meme coins tap into internet symbolism (e.g., DOGE’s Shiba Inu, PEPE’s sad frog)
- They reflect anti-establishment sentiment and resonate emotionally with retail investors
- PENGU blends NFT branding with Web3 storytelling, evolving from meme to lifestyle brand
Community-Driven Hype
- Meme coins thrive on viral marketing, meme creation, and grassroots promotion
- SHIB built an ecosystem (Shibarium, NFTs, Metaverse) to sustain community engagement
- PENGU’s airdrop attracted 20,000 wallets, with 30% converting to buyers
Economic Incentives
- Unconventional tokenomics:
- DOGE: infinite supply
- SHIB: deflationary burn model
- PEPE: zero-tax trading
- Strategic airdrops to influencers and communities spark initial momentum
Speculative Appeal
- Low price per token makes meme coins feel like “lottery tickets”
- During bull market rotations, meme coins absorb FOMO-driven capital
- PEPE’s 14% weekly surge and 34% wallet growth in 2024 exemplify this dynamic
Tech & Commercial Expansion
- New-gen meme coins integrate AI, gaming, and payments
- PENGU launched the game “Pudgy Party,” partnered with Walmart, and rang the NASDAQ bell
- Some meme coins now offer staking, cashback, and DeFi integrations
Will There Be Another Breakout Meme Coin?
In the cryptocurrency market, new trending MEME coins pop up quite often. With the rise of social media and active communities, new MEME coins are constantly being created. They can quickly gain popularity due to factors like viral marketing, celebrity endorsements, or fun themes.
The MEME market has a cyclical pattern. Every bull market sees a wave of MEME coins. For example, DOGE in 2017, SHIB in 2021, and PEPE in 2024. However, while about 300 new MEME coins are launched daily, less than 0.1% survive for over a year. Only 0.01% achieve a 100x return.
End
Meme coins are more than jokes — they’re cultural assets powered by emotion, community, and narrative. The next breakout will likely combine:
- Viral storytelling
- Active community
- Real utility or brand integration
If you’re scouting the next big meme coin, watch for presale traction, social buzz, and alignment with hot sectors like RWA, AI, or stablecoins.
