Meme coins like Dogecoin and Shiba Inu continue to make waves in 2025. For many investors, they represent the more entertaining side of the crypto market: they emerge from jokes or references to pop culture, go viral on social media, and sometimes manage to skyrocket in value unexpectedly.

However, its price can also plummet just as quickly, as its value depends more on fleeting trends and the backing of certain influential figures than on solid fundamentals. If you are considering entering this universe, it's good to know some points before investing your money.

What are meme coins and why do they attract so much attention?

In essence, a meme coin is a cryptocurrency that arises as a joke or tribute to a meme, character, or viral event. Unlike projects focused on solving concrete problems on the blockchain—such as scalability solutions, decentralized finance applications, or NFTs with real utility—meme coins are primarily based on fun, social media influence, and the community that drives them. This carefree approach attracts new investors who want to be part of 'something fun' and, as a result, often generates large price movements.

The most famous case is probably Dogecoin (DOGE), created in 2013 as a parody of Bitcoin using the Shiba Inu dog as a symbol. Against all odds, Dogecoin became one of the most traded and recognized cryptos. Shiba Inu (SHIB) followed a similar path, raising rumors of being the 'next Dogecoin' and garnering a loyal base of followers, which propelled its capitalization to surprising levels.

There are many other meme coins inspired by celebrities, internet jokes, or viral events. Some last a short time, but others maintain considerable trading volumes. In some cases, even 'sub-genres' form within meme coins, such as those based on pets (in addition to Dogecoin and Shiba Inu, others with different dog breeds have emerged).

To explore more options, many people in Latin America check the ‘Meme Coins’ section on Binance, where updated prices and volumes of each token are listed, ideal for identifying which are on the rise or digging deeper into specific projects.

Great attraction, great risk: the power (and danger) of hype

The reason for the skyrocketing rises of meme coins is linked to the 'hype' generated on social media. Celebrities, influencers, or even CEOs of major companies can, with a single tweet, spike demand and cause a domino effect. This massive enthusiasm often causes the price to multiply in days or hours.

However, the other side of the coin is the risk of speculative bubbles. It is common to see meme coins that rise 10x in a short time and attract buyers eager not to 'miss the opportunity'. But it only takes a shift in interest to another meme or a more attractive competitor for that token to lose 70% or 80% of its value in a matter of sessions.

Unlike established blockchains—which have ecosystems of applications (dApps), collaborations with companies, and deeper reasons to sustain their price—meme coins depend almost entirely on attention on social media. And when the public turns its gaze, the transaction volume dries up and the price collapses.

Lack of real use cases and vulnerability to speculation

Unlike projects like Ethereum, Solana, or Polkadot, which offer functionalities of smart contracts or scalability solutions, most meme coins do not have a clear utility in real life. Their value is based on a community that backs them and on marketing campaigns (sometimes spontaneous). If the narrative stops resonating, the price hangs in the balance.

While the strength of a community in the crypto space can boost a token, it usually does not sustain increases of tens or hundreds of times on its own. For most investors, the lack of concrete use cases is a red flag regarding the project's stability.

On the other hand, these assets are especially susceptible to tactics like pump-and-dump. In that scheme, a group of large holders (called 'whales') drives up the price through social media campaigns, only to sell at the peak and leave small traders with losses. Although any cryptocurrency can be subject to manipulation, meme coins tend to be more fragile due to their dependence on hype.

3 essential tips before investing in meme coins

  1. Understand the landscape and the risk
    If even established cryptos like Bitcoin or Ethereum fluctuate strongly, in the meme coins the variations can be much more aggressive. A 50% rise in one day can be followed by a 40% drop the next. Don't risk money you can't afford to lose.

  2. Examine the community and liquidity
    Check if there is a consistent trading volume. A token without liquidity can be hard to sell when you need it, forcing you to take very low prices. Also, observe whether the community is genuinely committed or just speculating on a passing trend.

  3. Identify signs of manipulation
    Be cautious with abrupt rises without explanation. Find out if there are whales controlling a large part of the supply or if the project has been accused of pump-and-dump. Better safe than sorry.

Trading strategies and hedging options

For those who decide to dive in with Dogecoin, Shiba Inu, or another token in this category, there are some strategies to mitigate risks:

  • Allocate a small percentage of the portfolio: Keep the majority of your capital in more solid assets.

  • Use stop-loss orders: If the price drops, you avoid getting 'trapped' in a very abrupt fall.

  • Take profits gradually: When you achieve profitability, you could secure part of your benefits instead of trying to guess the 'exact peak', which in meme coins can disappear overnight.

Regarding storage, if you plan to hold the coin long-term, it is advisable to use cold wallets (hardware wallets) for larger amounts. If you are trading in the short term, it may be convenient to leave the crypto on an exchange, without forgetting to activate two-step verification (2FA) and other security measures.

So, is it worth it or not?

Deciding to invest in meme coins depends on your profile as an investor. If you enjoy high risk, adrenaline, and the dynamics generated by these communities, you might find opportunities when the market is euphoric. But if you prefer something more stable, it's best to bet on projects with concrete applications, as they have more fundamentals than just the current 'hype'.

In the end, getting involved in meme coins is like entering an amusement park: it can be exciting, but there's a risk that you leave with discomfort or losses. Dogecoin and Shiba Inu are examples of tokens that can spike when a famous figure pays attention to them, but they can also lose momentum as soon as the excitement fades. The secret is to balance that potential for quick gain with a good dose of caution, allocating most of your funds to more robust cryptos and only a small part to the 'game' of meme coins.

If you finally take the plunge, always check the volume, liquidity, security, and the possible existence of market manipulation. Don't get carried away by promises of becoming a millionaire overnight. Meme coins can offer attractive opportunities, but they are reserved for those willing to tolerate a high level of uncertainty and speculation.

#memecoins #Dogecoin‬⁩ #ShibaInuUpdate

---

Image by pikisuperstar, available on Freepik