VanEck's MarketVector introduces Meme Coin index featuring DOGE, SHIB, and PEPE

VanEck's MarketVector has launched a new index specifically for meme coins, known as the MEMECOIN index. It tracks the top six meme tokens including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). The index, trading under the symbol MEMECOIN, has witnessed significant growth, soaring by 195% annually. It adds legitimacy to the memecoin market, with assets reviewed monthly. The index's holdings represent a substantial portion of the meme coin market, totaling $44.67 billion. Dogecoin dominates with a 30.77% weight, followed by Shiba Inu at 28.34%. Other tokens include Pepe, Dogwifhat, Floki Inu, and BONK. Despite recent fluctuations, the index has surged by over 202% in the past year, reflecting the explosive growth and speculative interest in meme coins.

Meme super cycle

During the current cryptocurrency bull cycle, meme coins have notably surged ahead of other sectors in the first quarter of the year. Analysts are discussing the possibility of a "meme coin super cycle," predicting substantial valuation increases. Unlike previous cycles, the current frenzy is fueled by growing interest from institutional investors like venture capital groups and hedge funds. Popular meme coins like Dogecoin and Shiba Inu have also piqued the interest of small investors, contributing to the trend. Additionally, anticipation of potential interest rate cuts by the Federal Reserve in 2024 could drive more capital into riskier investments like meme coins. Economic dissatisfaction among young crypto investors, facing financial barriers, further fuels interest in meme coins as a chance for significant returns. This demographic's inclination towards risky investments is expected to sustain the meme coin bull market beyond Bitcoin's catalysts.

Solana becomes top choice blockchain for Meme coins

The meme coin market has witnessed significant expansion this year, with Solana, a blockchain platform renowned for its low transaction costs, emerging as a favored platform for these speculative cryptocurrencies. Analysts anticipate Solana maintaining its popularity among meme coins due to its affordability, enabling users to make small investments with potential for significant returns—a departure from previous market crazes hampered by high Ethereum fees. Additionally, a new genre of meme tokens named PoliFi has garnered attention lately, with its market capitalization soaring to $586 million amid the election season's intensification. Notably, tokens like BODEN saw a 16% surge following a remark by former President Donald Trump during a campaign event. Similarly, tokens themed around Trump, such as MAGA and STRUMP, have experienced recent spikes in value.

VanEck's MarketVector's latest index, monitoring the top six meme coins, sparks discussions about a potential 'meme super cycle,' as institutions eye possible returns from popular meme coins. Despite the disclaimer on the index webpage stating that these coins are primarily for entertainment, the allure of profits attracts interest. Tracking approximately $44.67 billion of the total $51 billion meme coin market capitalization underscores the dominance of the largest meme coins.