- The Meme Coin Index, a benchmark that tracks the six biggest meme coins by market capitalization, was first introduced by VanEck’s MarketVector.
The index is updated on a regular basis, and the 30% cap on specific coin weightings ensures diversification. This cap ensures that no coin affects the index to an unduly high degree. The meme coin index offers information about a volatile and emerging market, which is useful to both institutional and individual investors.
With the help of this instrument, institutional investors can enter the volatile meme coin market in a scientific manner. The index offers a combined picture of its most important assets, reducing the need for direct exposure to individual coins.
On the other hand, individual investors may use the index to understand the market share and relative performance of the coins they are most interested in.
According to Matthew Sigel, Head of Digital Assets Research at VanEck, this new index from MarketVector may better encapsulate the spirit of the cryptocurrency market than any other benchmark, if memes truly are the new alpha. The firm is interested to see what other people may construct on top of it.
Dogecoin (DOGE), which is currently leading the index at 30.77%, highlights its established presence. Shiba Inu (SHIB) is a close second at 28.34%. Newcomers Pepe (PEPE) at 14.51%, Dogwifhat (WIF) at 12.54%, Floki Inu (FLOKI) at 7.14%, and BONK at 6.7% round out the remaining weightings.
The meme coin index has increased by nearly 202% over the past year, despite a slight decline recently. This shows the speculative interest and rapid growth in this particular area of the cryptocurrency market.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
