Meme coins experienced a strong start to 2024, reminiscent of the upward ticks in 2021 when precursors like Dogecoin (DOGE-USD) and Shiba Inu (SHIB) saw huge spikes. The announcement of an airdrop for DED, identified as the first meme coin on the Polkadot (DOT-USD) blockchain, brings the potential of repeating the same trend.
As the crypto space strives to move past the bear market, meme coins like Dogecoin have benefited from the prevailing positive sentiment. According to IntoTheBlock data, the number of new addresses on the Dogecoin network has doubled in a week.
The popularity of meme coins has spread to established blockchain brands like Solana (SOL-USD), although demand there appears to be waning. The dog-themed token BONK has sunk over 70% from its December peak. Lesser-known tokens POPCAT and CHIPI have been crushed by more than 90% since lifetime peaks.
Despite market fluctuations, Polkadot’s community is preparing for its first meme coin, DED. This development might be a turning point for the Polkadot blockchain, known for its interoperability, to diversify its offerings and benefit from the meme coin phenomenon.
A Brief History of Meme Coins
Typically inspired by viral internet jokes or humorous concepts, meme coins have their niche in the crypto world. The meme coin phenomenon, representing the fusion of digital currencies and internet culture, first gained traction with the advent of Dogecoin in 2013. Dogecoin drew its theme from the then-popular ‘Doge’ meme, featuring a Shiba Inu dog. Despite its satirical roots, the poster child of meme coins amassed a large following, soaring to a $80 billion market capitalization in May 2021.
Dogecoin’s success paved the way for others, notably Shiba Inu, which launched in 2020 as a rival. SHIB’s entry into the crypto world was sensational, with half of its supply sent to Ethereum (ETH-USD) co-founder Vitalik Buterin’s wallet. Buterin donated a chunk to India’s COVID-19 relief, taking the remaining Shiba Inu tokens out of circulation by “burning” them. Following this, SHIB’s value peaked at $36 billion in October 2021.
As the Dogecoin and Shiba Inu projects prove, significant increases in meme coin prices are observed when they attract social media users. This trend was especially pronounced during the COVID-19 pandemic, which saw a shift towards digital and online investment avenues. The meme coin trend was further bolstered by the “meme stock” era, marked by the rise of companies such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC).
The Birth of DED Coin
Meme coins, generally concentrated on the Ethereum network, have begun appearing on other major blockchain networks leading in the ecosystem. Two recent examples from different blockchains are Solana’s BONK and the upcoming DED for the Polkadot network.
BONK is the first dog-themed meme coin on Solana, a high-performance blockchain known for its fast transactions and low fees. BONK was launched in the last days of 2022 and has gained attention for being airdropped extensively within the Solana community, especially to non-fungible token (NFT) collectors and creators.
On the other hand, a dedicated community on the Polkadot network is pushing to launch the first meme coin, DED. As a multi-chain blockchain platform, Polkadot enables different networks to transfer messages and seeks to make a web where users’ data is their own.
In line with Polkadot’s community-focused goals, DED developers have announced that there will be no team allocation or pre-sale. Instead, DED will be distributed via airdrop -sending free tokens to loyal users’ wallets- to holders of Polkadot’s native token, DOT. Users are expecting fair and widespread distribution with this community-driven approach.
Active Polkadot users are already sharing their excitement, with recent Twitter polls showing that DED is leading the way as Polkadot’s desired official meme coin.
Giotto De Filippi, a DOT activist and DED coin enthusiast, strongly believes in the Polkadot community’s strength. “The dedicated Polkadot community has built this from the ground up in a completely permissionless, decentralized, and transparent way while bringing back the fun and whimsy that made many meme coins successful in their own right,” he noted.
The launch of DED represents a step for the community, blending the playful spirit of meme coins with the serious technological underpinnings of the Polkadot network. As the crypto world continues to evolve, initiatives like DED demonstrate the potential for community-driven projects to make a lasting impact in the digital currency landscape. Whether meme coins will soar to new heights or experience fleeting moments of fame, their journey in the expansive universe of digital currencies will be eagerly watched.
