Memecoins make no claim to utility. There is typically no revenue, no protocol to use and no roadmap that matters — the asset is a coordination point for attention, and its price reflects how much attention it currently holds. Supply is often enormous, which keeps the unit price at a fraction of a cent regardless of market cap.
The consequences for trading are concrete. Price is driven by social momentum rather than by anything measurable, so moves are large and abrupt in both directions; liquidity is usually shallow and concentrated in one or two pools; and holdings are frequently concentrated in a small number of wallets, which makes an exit by any of them a market event.
Why do memecoins have such huge supplies?
A very low unit price is itself part of the appeal — holding a billion of something feels different from holding a fraction of one. It has no bearing on value, since market cap is price multiplied by supply.
Last updated October 17, 2026