It's a very basic animated GIF of hamsters and bunnies dancing to a sped up music track.
Interestingly, it was created by a Canadian art student, Deidre LaCarte, who was competing with her best friend and sister to see who could create a site that would generate the most internet traffic.

Initially, the site only had about 4 visitors a day, but without warning it suddenly jumped to 15,000 per day. The website spread by e-mail, newsgroups and bumper stickers.
Click here to see the original dancinghampster animated GIF.
Fame!
The dancing hamsters eventually featured in a television commercial.
A couple of CDs were released featuring the Hampster Hits. You can also buy t-shirts and other merchandise featuring the dancing critters. The Hampsterdance song even climbed the Canadian and Australian Top 40 charts for a while.
Fans of the site created variations on the original dance, using everything from mushrooms to Cheeseburgers to Pez dispensers.
Nooooo.... Now I've got that song stuck in my head!
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