MEXC Exchange: What is a Meme Coin and why meme coins are popular?

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Meme cryptocurrencies are referred to as "meme coins" or "meme tokens" collectively. Memes are derived from the Ancient Greek term "mmma," which meaning "imitated item." The meme, as the fundamental unit of community culture, serves as a middleman between individuals and is an important component of community behavior, particularly in today's society. The influence of buyer sentiment on the market narrative of meme coins is what helps drive the market narrative. But what is it that makes these meme currencies so appealing?

 

Hype and meme coins are inextricably linked.
Meme coins are popular for a variety of reasons, but there are two primary ones:

The emotional agitation of community culture, as well as the serendipitous influence of story topics, are two factors that have considerably boosted the velocity of meme currencies. Institutional investors shorted two iconic meme stocks, Gamestop (GME) and AMC Entertainment (AMC), at the end of 2020. A month later, on the popular social networking site Reddit, retail investors joked about creating a cryptocurrency similar to the market value of GME's stock at the time (making Dogecoin more than 100 times more expensive). This joke unexpectedly came true.

Elon Musk, the CEO of Tesla, later tweeted, causing the price of Dogecoin to skyrocket. In just five days, the price of Dogecoin increased by over 2000%, reaching a new high of $0.73 per piece.

The low cost of meme coins is another reason that contributes to their popularity. Because most meme coins are merely a few cents or less, MEXC Exchange dealers can hold millions of meme coins for only a few dollars. This has a powerful psychological effect, leading traders to assume that meme coins are undervalued and inexpensive, in contrast to owning a blue-chip coin like ETH or BTC.
The foregoing two variables combined to produce a high demand for meme coins, as well as an unavoidable supply.