Memecoins will close 2023 with a market capitalization of more than $23.2 billion and daily trading volumes of about $1.9 billion, according to figures from CoinMarketCap.
Memecoins, anchored to Internet culture, speculation and a sense of community, were a trend within the cryptocurrency sector throughout 2023, a year in which their number multiplied exponentially.
The space, which was long dominated almost exclusively by Dogecoin, saw strong growth throughout the year. All of them have captured the interest of the crypto ecosystem.
Memecoins 2023
Memecoins, meme tokens or meme cryptocurrencies, flourished during the 2021 bull market, with the rise of Dogecoin and Shiba Inu. Since then they have become a big topic within the world of cryptocurrencies.
Memecoins can be presented as the tokenization of memes and Internet virality, with a social, community and fun charge on the one hand, and with a financial and speculative appetite on the other. In 2023, memecoins tokens based on memes of dogs, animals, and personalities became a trend within the crypto space.
Top memecoins in 2023
So, how have the top memecoins performed over the year? Let's look at the price performance of the main meme cryptocurrencies during the year:
Dogecoin (DOGE)
#Dogecoin , the original memecoin created in 2013, remains the main memecoin in the cryptocurrency market.
In terms of capitalization, $DOGE DOGE closes 2023 representing practically 50% of the total of all memecoins, with more than $12,870 million, the highest of all of 2023, although far from the gigantic $61,000 million of 2021. With periods of great volatility, the price of DOGE surpassed the $0.10 barrier for the first time since 2021 at the end of this year.
This means that it ends approximately 20% above the $0.07 it traded at the beginning of January.
Shiba Inu (SHIB)
#ShibaInu has managed to establish itself as the second largest memecoin in the crypto market in terms of capitalization, approaching $6 billion.
The price of SHIB $SHIB showed a great rise in the first two months of the year, reaching a maximum of $0.00001471, but it gradually faded. Especially in the second half, with a minimum quote of $0.000006.
Since October, the memecoin managed to recover its price to reach $0.000010, including a high of $0.00001165. SHIB ends with a price 20% higher than at the beginning of 2023.
SHIB price in 2023. Source: CoinMarketCap
Bonk (BONK)
#BONK , the Solana-based dog meme token, symbolizes much of the memecoin market growth in 2023.
A successful airdrop campaign, with 50% of the gigantic supply of 90 billion dollars, allowed the BONK token $BONK to record an unprecedented rise in its price, which remained without major fluctuations during the year.
Since the beginning of November, BONK's price, driven by the airdrop within the Solana community and the listings within different crypto exchanges, channeled its rise until reaching an all-time high of $0.00003419 in mid-December, representing an annual increase of 16,500%.
BONK's market capitalization is the third largest among memecoins, at more than $1 billion.
BONK price in 2023. Source: CoinMarketCap
Pepper (PEPPER)
The memecoin #PEPE , inspired by the classic Pepe the Frog meme, also had a great performance in 2023, positioning itself as the fourth largest meme in terms of capitalization (more than $500 million).
In May it peaked at $1 billion. Since its launch in April 2023 until the end of the year, PEPE's price has grown by more than 4,000%.
The memecoin reached its peak in May, when it surpassed $0.00000378. Then its price decreased, closing the year at $0.000001274. Overall, it showed relative stability compared to the fluctuations of other memecoins or cryptocurrencies in general.
PEPE price in 2023 (starting in April). Source: CoinMarketCap.
Floki (Floki)
Although far from its highest price reached at its launch, in 2021, the Floki memecoin closes 2023 among the market leaders.
The price of #FLOKI has increased almost 300% since the beginning of January, going from $0.000008005 to $0.00003462, including different periods of volatility.
In terms of market capitalization, FLOKI is the fifth largest memecoin of 2023, surpassing $320 million.
FLOKI price in 2023 (starting in April)
What drives memecoins?
There are various factors that explain the interest in memecoins. Beyond any component focused on laughter and fun that can be found in a dog cryptocurrency or that represents a viral meme, memecoins are often driven by the search to diversify investments within the crypto market.
Despite not having any use beyond speculation and a sense of community, memecoins are seen as an alternative to obtain greater benefits than main cryptocurrencies, such as Bitcoin, Ethereum.
The social and community component, especially in the crypto and blockchain space, largely explains how tokens based on memes or animals can become a particular symbol of identity. They started as a joke, but based on the figures they have, they are no longer one.
Memecoins: good or bad for crypto?
The meaning and existence of memecoins is often debated within the cryptocurrency ecosystem. For some, they represent the more speculative side of cryptocurrencies.
For others, memecoins are a fun gateway to the cryptocurrency sector, noted for its complexities. They are seen as part of the essence of freedom and the community nature of the sector.
Establishing a value judgment about memecoins is complex. However, currently, the best measuring stick is whether they are able to avoid falling into the temptation of market manipulation, scams or rug pulls. Only time will tell if memecoins will disappear from the crypto ecosystem in the short term.
