Its subsidiary VanEck has launched a meme coin index (MEMECOIN). MarketVector tracks the top coins in the cryptocurrency markets. This is an important milestone for the meme sector, which some seasoned investors have scoffed at.
The new index has been launched, showing a one-year ROI of around +195%. Year-to-date performance is +135.41%. The market capitalization is $44.14 billion.
Source: MarketVector
The index tracks a few coins, including Dogecoin, Shiba Inu, Pepe, Bonk, and Dogwifhat. DOGE has the largest weight, 30.69% of the index.
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 are looking for meme currencies. At the time of writing, the indicator is tracking only 6 meme currencies.
It is likely that more cryptocurrencies will be added to the index, which could lead to significant volatility in the new currencies. Market participants can track the MEMECOIN index to see any changes. Coins are added to the index based on their market value.
To avoid regulatory concerns, the index highlighted that “coins are intended for entertainment purposes.”
With so many coins being issued frequently (mainly on Solana), it is only a matter of time before the next “Bonk” is discovered.
Existing and new memecoin projects may focus on increasing their market value to enter MEMECOIN. This paves the way for innovation and creativity in the coin industry.
Will MEMECOIN Indicate a Spot Memecoin ETF?
Spot coin ETFs will not be approved so quickly, especially in the US. Gensler reiterated his position in a recent interview that almost all cryptocurrencies are considered securities.
However, if interest in MEMECOIN remains high, it could lead to the implementation of a spot currency ETF in the coming years.
It is important to note that meme currencies are very volatile and subject to strong price fluctuations. If you’re new to cryptocurrencies, 99bitcoins offers blockchain-based educational courses for new traders.