VanEck, a New York-based asset management giant, has launched a new financial index. Dubbed the MarketVector Meme Coin Index (MEMECOIN), this index tracks the largest meme coins. It aims to cover the top six meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), PEPE, Floki Inu (FLOKI), Dogwifhat (WIF), and BONK.
VanEck’s move taps into meme-based cryptocurrencies’ explosive popularity and potential high returns. It offers investors a structured approach to this often chaotic sector.
Comparing the MEMECOIN Index with Other Crypto Indices
The MEMECOIN index surged by 195% over the past year. It outperformed the S&P Bitcoin Index, which recorded a 127.21% gain in the same period.
The performance starkly contrasts even when compared with other MarketVector indices, such as the MarketVector Centralized Exchanges Index (MVCEX). MVCEX has been down 71.43% in the year-to-date (YTD) time frame. Meanwhile, MEMECOIN has been up 137.96% in the same period.
Read more: What Are Meme Coins?
This growth shows the increasing interest in meme coin investments. It also presents the unique appeal of meme-based digital assets.
As of May 9, 2024, meme coins boast a cumulative market capitalization of $50.93 billion. Furthermore, a CoinGecko report reveals that meme coins outperformed other crypto narratives in the first quarter 2024.
They did better than real-world assets (RWA) and layer-2 (L2) in terms of profitability. This trend reflects the broader acceptance of meme coins as investment vehicles.
The allure of meme coins shines through in the success stories of investors like Xremlin. Recently, Xremlin claimed they had turned a $5,000 investment into $200,000 by trading meme coins.
Xremlin shared the secret recipe behind this success. They highlight the importance of timing, market sentiment, and understanding meme coin dynamics. These elements are crucial for capitalizing on the rapid shifts in this market segment.
However, it is important to note the risks of meme coins. Ken Timsit, Managing Director at layer-1 (L1) blockchain Cronos, emphasized the volatility and potential financial risks in meme coin investment.
“Meme coin projects are volatile, and they can be financially risky. Paradoxically, they seem to carry lower regulatory risk than some more serious projects that have been targeted recently, because their team’s footprint is very small,” Timsit told BeInCrypto.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Therefore, Timsit suggested the importance of diversification in meme coin investments.
“While the dream of overnight riches can be compelling for many people, it is important that users and developers continue to pay attention to other blockchain use cases such as DeFi, Web3 gaming, decentralized social platforms, and decentralized infrastructure,” he added.
The post VanEck’s New MEMECOIN Index Soars by 195%, Outperforming Other Crypto Indices appeared first on BeInCrypto.
