The surge of Dogecoin (DOGE) has sparked the emergence of a new wave of meme coins in the midst of the growing mainstream acceptance of digital assets and web3 products.
VanEck, a global investment firm that offers spot Bitcoin ETFs in the United States, has unveiled a fresh offering called the Meme Coin Index (MEMECOIN) to track the performance of the top six meme coins. The introduction of VanEck’s MEMECOIN index has been made possible through the trademark of its MarketVector Indexes GmbH.
The primary constituent of VanEck’s MEMECOIN index is Dogecoin (DOGE), which is supported by Elon Musk and carries a weight of 30.77 percent. The second largest component is Shiba Inu (SHIB), an Ethereum-based coin, with a weight of 28.34 percent. The third largest component is the Pepe (PEPE) project, which features a frog theme and holds a weight of approximately 14.51 percent.
The MEMECOIN Index encompasses the six largest meme coins based on market capitalization, including Floki (FLOKI) and Bonk (BONK). As of now, the MEMECOIN Index has recorded an annual change of approximately 195 percent.
The launch of VanEck’s MEMECOIN Index demonstrates the high demand for meme coins, not only among retail traders but also among institutional investors. Additionally, many of the highly liquid meme coins are listed on major centralized crypto exchanges and top decentralized financial (DeFi) platforms.
With the presence of artificial intelligence technology to scrutinize web3 smart contracts for fraudulent projects, such as those with high taxes, the meme coin industry is well-positioned for further growth in the near future. As previously reported by Crypto News Flash, the meme coin industry is gradually moving beyond speculation and finding real-world utility, attracting a larger global user base.
Similar to Satoshi Nakamoto with Bitcoin, the meme coin industry has greatly benefited from anonymous developers. Furthermore, global regulators have not yet made efforts to regulate meme coins through securities laws.
As a result, VanEck believes that the meme coin industry is here to stay and will be one of the best-performing categories in the confirmed crypto bull market.
In terms of market implications, the meme coin industry currently has a market capitalization of around $51 billion and a daily average trading volume of approximately $4 billion. Dog-themed meme coins, particularly those featuring frogs and cats, remain at the forefront.
With VanEck’s recent endorsement of meme coins, top crypto analysts predict that this bull run will be a super cycle. Moreover, institutional traders are increasingly getting involved in the meme coin industry.
However, the endorsement of meme coins by VanEck may accelerate the creation of new meme coins, which increases the risk of rug pulls and a saturated market. Therefore, it is advisable for every meme coin investor to thoroughly research specific meme coin projects before investing their capital.