Meme coins were among the most popular crypto statements in 2024, creating a divide between crypto tokens. Bitcoin stands out among major crypto tokens with 125% year-to-date gains, and the meme coin sector, or the “alternative tokens”, hit a major milestone, surpassing a market capitalization of $ 100 billion.
Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEIP), the top three meme coins, have shed between 11% and 13% of their value in the past week. Bitcoin consolidates near $95,000, nearly 12% below its all-time high of $108,353.
Bitcoin coins vs meme, the most popular statement in 2024
Meme coins caught the attention of most crypto traders and emerged as a popular statement this year. The CoinGecko report updated on Monday notes that the coin meme statement captured a combined 30.67% of global investor interest.
The report reveals that nearly a third of crypto reporting interest this year focused on speculative gains from meme coins. Traders de-emphasized fundamentals and turned their attention and capital to dog- and cat-related meme coins, pop culture references and Internet personality-themed meme tokens.
Meme coins have seen a 6% year-over-year increase in interest from crypto market participants. While Bitcoin gained institutional attention and capital allocation after the approval of Spot BTC ETFs in the US, four meme-based movements were among the top 20 statements in crypto.
Solana (SOL), Foundation, artificial intelligence and cat-themed meme coins collected between 14% and 8% of interest among crypto statements.
With meme coins cementing their place as a mobile token sector and moving this cycle, catalysts such as institutional allocation and ETF approval could pave the way for further gains for holders.
Base, Solana, XRP memes dominate blue-chip memes in speculative gains
In the first week of December, meme coins based on XRP brought benefits to holders amid an increase in relevance and demand for the XRP Ledger and the native XRP token. Similarly, meme coins based on Solana and Base have ranked in the top 20 cryptocurrency statements of the year, dominating the popularity of blue-chip meme coins.
Dogecoin, SHIB and PEPE are generally considered blue-chip memes, with a market capitalization between $7 and $46 billion, as seen on CoinGecko. The top 3 brands in the dog meme category saw a spike in active addresses and activity from traders within the first two weeks of December.
In the last seven days, the top 3 tokens have erased double-digit value, according to CoinGecko data. Several other meme tokens have accumulated double-digit losses, with the exception of Pudgy Penguins (PENGU).
Institutional meme coin investments increased this year
The wave of meme dog adoption prompted institutions to triple their holdings in the sector. From February to March 2024, institutional investors' spot investments of memecoins climbed from $62.5 million to $204.8 million.
This represents a 226% increase, a significant increase in interest in the memecoin market, according to Bybit's report on institutional investment in meme coins.
In the Bybit report, Eugene Cheung, CEO of Bybit Institutions, says:
“Our 'Beyond the Hype' report shows that institutional and retail investors are actively taking advantage of the opportunities presented by the memecoin market. The strategic flexibility of institutions and their dynamic management by retail investors reflects a sophisticated engagement with these funds. We invite everyone to review the full report to better understand these important dynamics.”
Dogecoin ETF likely in 2025?
The rise of institutional adoption has raised questions about the likelihood that the US financial regulator, the Securities and Exchange Commission, will find meme coin ETFs. Nate Geraci, President of ETFStore expressed shock that an issuer has yet to file for the Dogecoin ETF, both inside and outside the US
Geraci believes that the only possible disadvantage of such a registration is that it would mark an unsustainable effort and end up as a marketing expense for a publisher. The President of the ETFStore mentioned the ticker “DOGE” as the ticker for the biggest meme coin and likely to have the highest relevance and demand among issuers in the future,
As the SEC greenlights the Bitcoin-Ethereum hybrid ETF, DOGE traders are hoping for Dogecoin ETF approval in 2025.
The Bitcoin coin and meme divide runs deep
Ruslan Lienkha, Head of markets at YouHdler told Crypto.news in an exclusive interview:
“Dogecoin's recent performance appears largely speculative, driven by its association with Elon Musk, rather than any underlying fundamentals, as there are still few real-world use cases. However, a resource could be developed in the future. “
Lienkha comments on what separates Dogecoin coins and a meme similar to Bitcoin. While Bitcoin has been adopted as “digital gold” and a hedge against the depreciation of fiat currencies, Dogecoin and its ilk are considered speculative tokens.
The Bitcoin and meme coin division runs deep and could affect the meme coin ETF agreement, further investment from institutional investors and retail participation in the sector in the second phase of the bull market.
Typically, a drawdown in Bitcoin provides a faster and market-wide correction, wiping out recent gains from meme coins and negatively impacting the sector's market capitalization. The correlation with Bitcoin may continue to drag down meme coins, and in all cases, the biggest crypto will fall or deal with a market movement event during the cycle this.
Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.
