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The 2021 bull run made it clear that memecoins and the category as a whole were here to stay. While a huge section of the crypto community has been against the idea of memecoins for a while now, it is evident that the introduction of new such tokens has been consistent. But the same hasn’t been the case lately due to the bear market. However, investors were shocked as they saw dog meme tokens spike in value recently.
An increase in the creation of memecoins was initially followed by a huge number of scams, where investors were either scammed directly or were made to park their money into rug pull projects. This had already created a bad reputation. for the category despite thousands of people who were still interested. Moreover, tokens that were rewarding users with excellent returns within days were nowhere to be found as the market started its downtrend.
Infact, most of the memecoins that were created in 2021 alone with highly ambitious roadmaps cease to exist today. Despite these unlucky investments, there are a certain set of memecoins that the community still seems to be bullish on and rightly so, since they have managed to rise in price after every crash.
Dogecoin and its history
Dogecoin has historically been known as the original memecoin. Created way back in 2013 as a joke, the asset was popularized within the community within the following years. However, it wasn’t until Tesla owner Elon Musk’s tweet that the token started gaining value. Within just the first five months of 2021, Dogecoin had pumped more than 15,650% thanks to support from the tech billionaire.
Naturally, this was something that was unexpected at the time. Dogecoin was a cryptocurrency with no underlying use case. While a whole chunk of the investing citizenry was confused and furious at the situation, projects surrounding the token also saw a rise in price.
The recent pump and its effect on Dog meme tokens
The market crash in 2022 bought down Dogecoin, and all other dog meme tokens by over 90%. Despite this, some projects with strong communities and decent products managed to survive. The chart looked rather bleak for Dogecoin and other cryptos in the space for a while until recently. This sudden change in the trend is expected to be yet again because of the announcements by Elon Musk.
The SpaceX founder recently acquired twitter. He had spent a whopping $44 billion to get his hands on the social media platform, which is one of the biggest outlets for everything related to cryptocurrencies.
This caused Dogecoin to pump, as it always has whenever Elon Musk makes the headlines. DOGE, which was trading at around $0.058 in October shot up to the current level of $0.13 within less than a month. This heavily impacted other Dog meme tokens too, which followed the original memecoin and started an uptrend.
This was an expected result too since DOGE plays more or less the same role Bitcoin does when it comes to memecoins. It has served as the benchmark crypto for the memecoin category and has managed to assert that once again with the influence it has had on other similar tokens recently.
4 gradations of pump in these Dog coins.
It will be interesting to see whether one will catch up to the others or if this is simply the way it goes.
But it does seem pretty clear who the "king" of meme coins is still. pic.twitter.com/fGfesRnhJE
— Daan Crypto Trades (@DaanCrypto) October 30, 2022
This tweet shows how several meme tokens followed DOGE, while the latter still managed to stay ahead in terms of price.
SHIB, SAMO, TAMA and FLOKI see an uptrend
There are many projects that claim to be a part of the Doge ecosystem. However, only a few have actually managed to gain such a level of recognition and community strength. Four major tokens that have both these aspects are Shiba Inu, Samoyedcoin, Tamadoge and Floki Inu.
Shiba Inu is the second biggest meme token, with a market cap of around $6.5 billion. The token rose from its price of $0.000009 to $0.000012 level almost in the same timeframe as DOGE. Although DOGE has managed to stay afloat, SHIB has been weakening after the sudden pump. Samoyedcoin is another token in the space that has a huge community. It SAMO token too, saw a decent spike in price along with Dogecoin and has been consolidating in the $0.000012 level currently.
Similar to SHIB and SAMO, TAMA, the native token of Tamadoge also saw a surge in demand. The recently launched project was already making headlines due to its fundamentally strong product offering and token utility. The community claims that it expects TAMA to go further up in the upcoming days due to dogecoin’s influence and its own list of upcoming developments. Floki Inu also saw a decent increase, where the token went from trading at around $0.0000074 to more than $0.000012 within a couple of days.
Is this growth sustainable?
While Dogecoin did manage to make its way up due to these recent developments, its growth cannot be compared directly to the other tokens. It has been seen before that every such pump by DOGE ended up in a gradual decline, rendering investors helpless right after. Surely, this may also be the start of a bullish movement for the dog meme tokens. But that is mere speculation that cannot be entirely relied upon.
The best option currently would be to consider tokens that have a strong use case and have been building their ecosystem during this bear market. Tamadoge may infact be one such project. It boasts a memecoin status along with actual utility, which can be a reason for considerable growth in the future. At the time of writing, TAMA is trading at around $0.02 with several upgrades and announcements underway.
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