VanEck’s new MEMECOIN index launches with gains of 135% YTD.
A subsidiary of VanEck has launched the MEMCOIN Index (MEMECOIN). MarketVector tracks the best meme coins in the cryptocurrency market. This is a significant milestone for the meme coin sector, which has been derided by some seasoned investors.
A new index has been released showing a one-year ROI of approximately +195%. Year-to-date performance (YTD) is +135.41%. Its market capitalization is $44.14 billion..
Source: Market Vector
This index tracks some meme coins including Dogecoin, Shiba Inu, Pepe, Bonk, and Dogwifhat. DOGE has the largest weight in the index at 30.69%.
The next review will take place on May 27, 2024.
What does the MEMECOIN index mean for the cryptocurrency industry?
First, it is known that many investors look for meme coins. As of this writing, the index tracks only six meme coins.
It is likely that more meme coins will be added to the index, which could lead to significant volatility in the new coins. Market participants can track changes in the MEMECOIN index. Meme coins were added to the index based on market capitalization.
To avoid regulatory concerns, the index emphasized that “the coin was created for entertainment purposes.”
With so many meme coins being released frequently (mostly on Solana), it’s only a matter of time before the next ‘Bonk’ is unearthed.
Current and new meme coin projects may focus on increasing market capitalization to enter MEMECOIN. This paves the way for innovation and creativity in the meme coin industry.
Will the MEMECOIN index signal a spot ETF for meme coins?
Approval of a spot meme coin ETF may not come very quickly, especially in the United States. In his recent interview, Gensler reiterated his stance that almost all cryptocurrencies are considered securities.
However, if interest in MEMECOIN continues to grow, it may lead to the application of a spot meme coin ETF in the next few years.
It is important to emphasize that meme coins are highly volatile and prone to significant price fluctuations. If you are new to cryptocurrency, 99bitcoins offers blockchain-based training courses for new traders.
