The crypto world is no stranger to "meteoric rises." Stories of meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Dogelon Mars (ELON) surging hundreds or even thousands of times in value have become legendary.
To traditional finance professionals, such phenomena are often dismissed as mere Ponzi schemes. But is that really all there is? As media theorist Marshall McLuhan famously said in 1964, "The medium is the message." In today’s crypto market, the meme is the message.
The Fundamental Difference Between Traditional and Crypto Finance
Traditional finance excels at using valuation models to determine an asset’s intrinsic value and identify undervalued opportunities. This approach, however, falls short in the crypto world. Assets like Bitcoin, which generate no dividends or cash flows, are dismissed by critics like Warren Buffett as "rat poison."
Traditional markets are mature, with sufficient liquidity, arbitrage mechanisms, and risk assessment frameworks. Their valuation formula, as suggested by eGirl Capital, can be summarized as:
Price = Value × Deviation Factor
Here, the Deviation Factor includes liquidity, market volatility, hype, and other elements that influence intrinsic value. But this model doesn’t translate well to crypto, where intrinsic value is often ambiguous or even zero.
A new framework is needed.
How Crypto Assets Derive Their "Intrinsic Value"
Unlike traditional assets, crypto values are built on consensus. Communities form around shared beliefs, and basic supply-demand dynamics take over: supply remains limited while demand grows, driving prices up.
The core difference is this: traditional finance relies on projected cash flows to create supply and demand, while crypto relies on consensus.
Bitcoin’s consensus, for instance, rests on several pillars: an immutable ledger, limited supply, and distrust in traditional monetary systems. More recently, institutional adoption has added "portfolio diversification" to that list.
Since consensus drives value, the speed and reach of information dissemination are critical. This is where memes come into play.
The Accelerator of Crypto Consensus: Meme Culture
The term "meme" originates from the Greek word for "imitated thing." Evolutionary biologist Richard Dawkins, in his book The Selfish Gene, defined memes as "units of cultural transmission." They are characterized by being concise, understandable, and highly replicable.
As Dawkins wrote:
We are built as gene machines, but we are also shaped by memes driving cultural evolution.
Internet marketers love memes because they don’t require polish—simple text and imagery can resonate deeply. Their modular nature allows for instant, precise communication.
Linda Xie, former Coinbase product manager and founder of Scalar Capital, noted: "A good meme spreads much faster than a long article."
For crypto communities, memes offer more than just fun and efficient communication. Their viral spread strengthens community bonds and creates a wealth aggregation effect.
The mechanism is straightforward: faster diffusion leads to more demand. Increased demand with fixed supply drives prices up, which in turn attracts media coverage and further speculation, creating a feedback loop.
Case Studies: DOGE, SHIB, and ELON
The power of meme-driven rallies is staggering.
In July 2020, a TikTok video went viral urging users to invest in Dogecoin:
Let’s all get rich! Dogecoin is practically worthless, but TikTok has 800 million users. Just invest $25. If it hits $1, you’ll have $10,000!
Within a day, Dogecoin surged over 50%, and its market cap grew from $287 million to $540 million.
Later, Tesla CEO Elon Musk’s tweets—including self-proclaiming as the "Dogefather"—propelled DOGE to $0.70 at its peak. For the year, DOGE gained 3,500%; from its lowest to highest point, the increase was 15,100%.
Shiba Inu (SHIB), positioning itself as the "Dogecoin killer," achieved even more eye-popping returns—at one point rising 870,000 times.
Dogelon Mars (ELON), combining the "Doge" meme with Elon Musk and Mars (a crypto slang for soaring prices), was launched in May 2021. It rallied from $0.0000000078 to $0.00000072—a 91x gain—and at its peak, it was up nearly 300x.
Of course, what goes up can come down just as fast. Meme coins are notoriously volatile. But their appeal endures.
The Evolution of Dog-Themed Meme Coins
According to Crypto.com, the top three dog-themed meme coins by market cap are DOGE, SHIB, and ELON.
Dogecoin started as a joke. Creator Jackson Palmer wanted to satirize the speculative frenzy around Bitcoin knock-offs. He used the popular Shiba Innu meme image—ironic, wordless, and highly adaptable.
Palmer stated:
I think Dogecoin can complement Bitcoin. It’s a way for people who’ve never used crypto to get started. Hands-on experience is the best way to learn economic theory.
Shiba Inu (SHIB) emerged in August 2020 as an "anonymous experiment." It branded itself as a decentralized community experiment, with 50% of tokens locked in Uniswap (and keys discarded) and the other half sent to Ethereum founder Vitalik Buterin. This was meant to ensure fairness and prevent insider dumping.
Dogelon Mars (ELON) takes meme culture to another level. It merges three potent crypto memes: Doge, Elon Musk, and Mars. It’s now listed on major exchanges like Crypto.com, OKEx, KuCoin, Huobi, and Gemini.
To deepen the narrative, the project released a sci-fi comic series set in 2420, featuring Dogelon Mars as the protagonist. The community communicates largely through memes and images, with over 520,000 Twitter followers and 87,000 Telegram subscribers.
The project also released NFTs based on the comic series and classic doge imagery.
Beyond the Meme: Building lasting consensus
While meme culture in crypto undoubtedly involves speculation, it can also drive positive change. Bitcoin’s consensus around decentralization and monetary freedom has been amplified through memes, attracting broader adoption.
Millennials, raised on internet memes, are increasingly embracing Bitcoin and other cryptos—both for their underlying ideals and the cultural resonance memes provide.
The same is happening with Dogecoin and Shiba Inu. What started as jokes are now accepted payment methods. Tesla already accepts DOGE for some products, and Musk has urged McDonald’s to follow suit. AMC Theatres now accepts both DOGE and SHIB.
This is consensus hardening into belief. As technology evolves and communities grow, a self-reinforcing cycle takes hold.
A New Valuation Framework for Crypto Assets
Recall the traditional valuation formula:
Price = Value × Deviation Factor
Since crypto assets defy traditional valuation, eGirl Capital proposed a revised model:
Price = Value × Deviation Factor × Speculative Premium/Discount
Here, "Value" refers to a measure of the asset’s worth, often based on realizable net value. The "Speculative Premium/Discount" accounts for hype, attention, and other intangible factors—which may represent the bulk of a crypto asset’s value.
Meme-driven rallies are often fueled by loose monetary policy, but meme culture is now deeply embedded in crypto. From 2020’s "food series" DeFi tokens to animal-themed NFTs, memes rapidly alter supply-demand dynamics.
Future bull markets will likely see similar patterns. Tracking meme trends becomes crucial.
Dogecoin and Shiba Inu have shown that memes can build powerful, positive feedback loops. The question is whether newer entrants like Dogelon Mars can sustain the momentum—or what new memes will emerge next.
Regardless, meme culture is now a fundamental force in crypto valuation and community building.
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Frequently Asked Questions
What is a meme coin?
A meme coin is a cryptocurrency inspired by internet memes or jokes. They often lack utility but gain value through community support, viral marketing, and celebrity endorsements.
Why are meme coins so popular?
They are accessible, entertaining, and often driven by strong community engagement. Social media amplification and cultural relevance also play major roles.
Are meme coins a good investment?
They can generate high returns but are extremely volatile and risky. Investors should never allocate more than they can afford to lose and should prioritize diversification.
How do meme coins gain value?
Value is primarily driven by supply-demand dynamics, hype, and community consensus rather than fundamental utility or cash flows.
Can meme coins have real-world use?
Yes. Some, like DOGE and SHIB, are now accepted by major retailers as payment, adding tangible utility beyond speculation.
What is the future of meme coins?
While some may fade, others could evolve into lasting projects with dedicated communities and real-world applications. Monitoring cultural trends and technological developments is key.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and make independent decisions.