Altcoins vs. Memecoins
The crypto market is filled with thousands of coins, but not all are created equal. Altcoins vs. Memecoins is a debate that comes down to technology, purpose, and risk. Understanding the differences can help you make smarter investment choices.
What Are Altcoins?
Altcoins are all the alternative coins to Bitcoin. Any cryptocurrency other than Bitcoin falls under this category. Some in the cryptocurrency market differentiate further, considering only cryptocurrencies other than Bitcoin (BTC) and Ethereum (ETH) to be altcoins.
The first-ever altcoin was Namecoin, created as a hard fork from Bitcoin. Its goal was to insert data into the Bitcoin blockchain, demonstrating an early effort to expand blockchain capabilities. Over time, many other Bitcoin-based altcoins emerged, including Litecoin (LTC), Bitcoin Cash (BCH), and Bitcoin Gold (BTG). These were developed through hard forks to introduce modifications like faster transactions or improved security.
Other than Bitcoin forks, many altcoins were created with unique features and independent blockchains. Cryptocurrencies like Ethereum (ETH), Polkadot (DOT), Cardano (ADA), and Ripple (XRP) were designed to offer specific functionalities, such as smart contracts, interoperability, or efficient cross-border transactions. These altcoins drive innovation in the cryptocurrency market and serve real-world applications beyond simple transactions.
Learn more in our dedicated article: What are altcoins?
What Are Memcoins?
Read also: What are memecoins?
Memecoins differ from traditional altcoins as they originate from humor, internet trends, or cultural references. Unlike other cryptocurrencies with clear technological objectives, memecoins often lack robust technology or practical use cases. Instead, they derive their value from community enthusiasm, viral marketing, and online hype. Despite this, many memecoins have gained significant traction in the crypto market, attracting millions of traders and investors.
Memecoin creation typically stems from popular internet memes or humorous themes rather than trying to solve real-world problems. Most meme coins are launched purely for fun and entertainment, holding no inherent utility. However, their popularity has surged in recent years, driven by the power of social media and meme culture.
The first-ever memecoin, Dogecoin (DOGE), started as a joke but eventually became a phenomenon, kickstarting the memecoin movement. Today, community-established meme coins like Dogecoin and Shiba Inu (SHIB) have become essential parts of the crypto ecosystem, boasting billion-dollar market caps. Some of the most well-known meme coins include Pepe Coin (PEPE), Bone ShibaSwap (BONE), and Floki Inu (FLOKI).
While most began as lighthearted jokes, some are evolving into structured projects with defined purposes.
For example, Dogecoin is now widely used for online payments, while Shiba Inu is expanding its ecosystem with ShibaSwap (a decentralized exchange), Shibarium (a layer-2 blockchain), and the SHIB Metaverse. These projects demonstrate that memecoins, while initially speculative, can evolve into valuable assets within blockchain networks.
The list of meme coins is constantly expanding, with new projects emerging every day. Some survive and thrive, while others disappear as interest wanes. Understanding the difference between community-established meme coins and short-lived hype-fueled tokens is crucial in this volatile sector of the crypto market.
Are Memecoins a Type of Altcoin?
Yes, they are. All memecoins are altcoins, but not all altcoins are meme coins. The key differences lie in their origins, applications, and underlying technology.
Key Differences Between Altcoins and Memecoins
So, how do these two crypto types compare? We’ve specified that altcoins cover all cryptocurrencies, excluding Bitcoin. Thus, meme coins are a type of altcoin, but not the other way around. Let’s take a look at other differences between the two.
Development and Technical Innovation
Altcoins are designed to enhance blockchain technology or solve specific problems. Memecoins, on the other hand, originate from internet memes and cultural trends, often without any underlying technological innovation. Meme coin creation is usually caused by viral appeal rather than technological advancements.
Altcoins introduce new blockchain features such as smart contracts, improved scalability, and enhanced privacy. Many contribute to decentralized finance (DeFi), interoperability, and enterprise blockchain solutions. Memecoins mostly rely on existing blockchain frameworks, such as Ethereum and Solana, without introducing meaningful technical improvements.
Most memecoins today are ERC-20 tokens, following Ethereum’s fungible token standard. Some are also launched on Solana due to its high-speed and low-cost transactions. Platforms like Pump.fun have made meme coin creation easier, allowing users to launch tokens with minimal effort. However, these tokens rarely contribute to blockchain evolution.
Coin Supply and How It Works
Memecoins follow a community-driven tokenomics model, often characterized by enormous or unlimited supplies. This can lead to inflationary pressures, reducing their long-term value.
Altcoins have structured supply mechanisms. Some, “copying” Bitcoin, have a fixed supply cap to create scarcity and maintain value. Others, like Ethereum, introduce staking and burning mechanisms to balance supply and demand. Many altcoins implement controlled token emissions to sustain network growth and incentivize participation.
Memecoins frequently use large token distributions and marketing strategies to attract investors. However, their economic models often lack sustainability, leading to extreme volatility and frequent crashes.
Team and Support Behind the Project
Memecoins can grow into serious projects if they have a strong development team and an engaged community. However, their creation is often spontaneous, with no clear roadmap or long-term vision.
Altcoins are created with a purpose. They aim to improve blockchain limitations, introduce new functionalities, or solve real-world problems. Many altcoins have dedicated teams, roadmaps, and funding to support ongoing development and innovation.
Memecoins usually depend on their community for growth. If interest wanes, the project fades. Altcoins, however, achieve sustainability through technological advancements and strategic partnerships.
Everyday Uses and Real-World Purpose
Memecoins have minimal real-world use cases. They primarily serve as entertainment, speculative assets, or tipping tokens on social media platforms. Their value largely depends on viral trends rather than utility.
Altcoins are designed for practical applications. Ethereum powers decentralized applications, Cardano aims for financial inclusion, and Polkadot enables blockchain interoperability. Many altcoins facilitate secure transactions, smart contracts, and governance models.
Altcoins push the boundaries of blockchain innovation, introducing new consensus mechanisms, governance models, and cross-chain functionalities. Meme coins rely on social engagement and community enthusiasm, existing primarily as speculative assets or social experiments rather than technological breakthroughs.
While some memecoins attempt to introduce utility, their primary appeal remains speculative. Meanwhile, established altcoins play a vital role in the blockchain ecosystem and digital economy.
Handling Market Ups and Downs
Altcoins offer more stability, while memecoins are high-risk, high-reward bets.
Memecoins often experience rapid price spikes followed by sharp declines. Many surge in value due to viral marketing and influencer endorsements but later collapse when large holders sell off their assets. Since most memecoins emerge from speculative trading, their value is highly unpredictable. Examples include $LIBRA and Big Eyes Coin, where whales sold at the top, causing prices to plummet.
Altcoins generally show better market resilience. Projects with strong fundamentals and adoption tend to grow across multiple market cycles. Unlike memecoins, which often fade after the hype, well-established altcoins continue evolving. For instance, Solana and Polkadot have expanded their ecosystems and maintain relevance despite market fluctuations.
Each coin launched with a clear use case and long-term vision has a better chance of surviving market volatility.
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Trust and Reputation
Credibility separates long-term projects from short-lived hype. Altcoins focus on solving problems with real-world use cases, while memecoins rely on viral trends and community hype.
Memecoins often lack clear roadmaps and exist only as speculative assets. Their success depends on community engagement and viral appeal. Some, like Dogecoin and Shiba Inu, have built strong communities, but many collapse after the hype fades. The space is also full of rug pulls and pump-and-dump schemes.
Altcoins have a stronger foundation, but some memecoins gain legitimacy through community backing. To assess credibility, investors must check project transparency, development activity, real-world adoption, and community strength.
Security
Memecoins often lack robust security measures. Many are launched hastily, increasing the risk of vulnerabilities, rug pulls, and scams.
Altcoin security varies depending on the project. Leading altcoins implement strong security measures, including audited smart contracts, decentralized governance, and built-in fraud prevention. Major altcoins also undergo rigorous testing before widespread adoption.
Community Culture
Memecoins thrive on community loyalty, which boosts their popularity and value. Strong communities help sustain memecoin projects. Their success is entirely dependent on community engagement. Without consistent support, these projects quickly lose traction.
Altcoin communities are diverse, attracting developers, institutional investors, and users interested in blockchain innovation. While some altcoin communities are passionate, they are less reliant on social media trends.
Long-Term Potential
Altcoins aim for long-term growth by leveraging technology and real-world applications. They continuously evolve to improve blockchain ecosystems and address industry challenges.
Memecoins, on the other hand, often disappear once their viral appeal fades. Only a handful manage to sustain relevance beyond their initial hype cycles.
A rare exception is Shiba Inu (SHIB), which started as a reference to the Shiba Inu meme but evolved into a full-fledged crypto project. It gained serious community support and launched Shibarium, a layer-2 blockchain aimed at reducing transaction costs and improving scalability. This shift positioned Shiba Inu as more than just a memecoin, making it a solid altcoin.
However, most memecoins fail to follow this path, remaining speculative assets with no real development or long-term vision.
Risk
Investing in memecoins is extremely risky. Their value depends on hype, making them prone to extreme price fluctuations and rapid crashes.
All cryptocurrencies are volatile, but memecoins are among the most unpredictable assets. Their prices are formed by speculation rather than fundamentals, leading to sudden market movements.
Altcoins have intrinsic value based on their use cases, making them comparatively more stable. Investors rely on their technological promise and market adoption rather than speculative trends.
Altcoins vs Memecoins: Comparison Table
Are Memecoins Important to the Crypto Industry or Are They Just a Scam?
Memecoins have sparked debate in the crypto market. Some see them as an exciting gateway to crypto adoption. Others consider them risky assets built on hype. Their impact depends on how they are used and whether they evolve beyond speculation.
Pros of Memecoins
- Community Engagement
Memecoins create strong communities. Holders often unite around humor and shared interests, forming an active user base. Some popular meme coins like DOGE and SHIB have grown into full-fledged ecosystems.
- Accessibility
Most memecoins have low entry prices, making them appealing to casual investors. They provide an easy way for newcomers to enter crypto without significant capital.
- High Return Potential
Viral trends can send memecoin prices skyrocketing. Early investors in projects like PEPE saw massive gains in a short time. However, this success is often just as short-lived.
Cons of Memecoins
- Extreme Volatility
Memecoins lack intrinsic value. Prices depend on speculation, making them highly unpredictable. Rapid price swings mean investors can lose money just as fast as they gain it.
- Lack of Fundamental Use Cases
Unlike altcoins built for real-world applications, most memecoins have no utility. They exist mainly for entertainment and trading. While some projects try to create use cases, other meme coins show that most fail to sustain long-term growth.
- High Scam Risk
The memecoin space has been plagued by pump-and-dump schemes and rug pulls. Bad actors launch meme coins purely for speculation, only to abandon them after profiting. Investors often lose money when hype-driven projects like this collapse.
Nonetheless, memecoins do bring liquidity and attention to crypto. They introduce new users and generate trading volume. However, their speculative nature undermines market stability. The rise of scam projects also fuels skepticism about cryptocurrencies as a whole.
So, memecoins are really a double-edged sword. They offer excitement, community engagement, and potential profits. At the same time, they come with extreme risks.
How to Buy and Store Altcoins and Memecoins
You can buy altcoins and memecoins on any crypto exchange that supports them. Some wallets also offer direct purchases, though fees may be higher. At Changelly, we support over 1,000 altcoins, making it easy to diversify your portfolio.
For storage, choose a trusted wallet that suits your needs. Hardware wallets offer the highest security, while software wallets provide convenience for daily transactions. Always keep your private keys secure to protect your assets.
Investment Considerations: Altcoins vs Memecoins
Before investing, always conduct your own research. Both altcoins and memecoins carry risks, but their fundamentals differ.
Risk factors for both
Even popular altcoins experience extreme price volatility. Memecoins are even riskier, often rising and falling based on trends rather than fundamentals. Scams and rug pulls are also common, making due diligence essential.
Short-term speculation vs. long-term growth
Most memecoins thrive on hype and short-term gains, while alternative cryptocurrencies often focus on real-world utility. Altcoins with strong technology and adoption have better long-term growth potential.
How to evaluate projects before investing
Look for dedicated communities, active development, and transparent roadmaps. In the crypto space, reliable projects have strong teams, clear use cases, and consistent updates.
If you’re looking for a project with strong potential, check out our article where we’ve handpicked the best cryptos to buy now.
Final Thoughts
The Altcoins vs. Memecoins debate comes down to purpose, risk, and longevity. Altcoins bring innovation and real-world use, while memecoins thrive on hype and community. Some memecoins have evolved, but most remain speculative. If you’re investing, DYOR, and know the risks.
FAQ
Are all memecoins considered altcoins?
Yes. Since memecoins are created on existing blockchains and based on memes or trends, they fall under the category of altcoins. Every memecoin is an altcoin, but not every altcoin is a memecoin.
Can memecoins ever have real-world use cases?
Yes, they can. For example, Dogecoin is used for payments, and Shiba Inu has built an entire ecosystem. While most memecoins lack real utility, some projects evolve beyond just being internet jokes.
Which is riskier: altcoins or memecoins?
Memecoins are definitely riskier. Their value mostly comes from hype, making them highly volatile. Altcoins, depending on the underlying project, usually have stronger fundamentals.
How do I know if an altcoin or memecoin is a scam?
Do thorough research. Check the whitepaper, team, and roadmap. Also, browse crypto community forums like Reddit to see if others have raised concerns. If it looks shady, it probably is.
Can you make money investing in memecoins?
Yes, but you can also lose everything! Memecoins can skyrocket, but they can also crash overnight. Never invest more than you can afford to lose.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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