How do meme coins gain value if they don't have real utility?

Meme coins gain value primarily through community enthusiasm and social media momentum rather than underlying utility. Their prices rise when demand exceeds supply—driven by factors like celebrity endorsements, viral trends, or coordinated buying. Examples include Dogecoin and Shiba Inu, which achieved significant market caps despite lacking technical innovation. Value is essentially speculative: early adopters hope to sell at higher prices to newcomers. This makes meme coins extremely volatile and risky. They can collapse rapidly when hype fades or influential supporters change direction. Investors should understand they're betting on social sentiment, not fundamentals like cash flow or technology improvements. Most financial experts warn that meme coins resemble gambling more than investing.