The MarketVector Meme Coin Index surged over 137% since the beginning of 2024 as the top memecoins continue to rise.
MarketVector’s memecoin index has outperformed the S&P 500 index by over 15x in 2024. In contrast, the S&P only saw a 9.3% price appreciation year-to-date (YTD), according to TradingView data.
The memecoin index is up over 137% year-to-date and 186% over the past year, trading at $76.60 as of 8:52 am UTC.
MarketVector, a subsidiary of the United States asset management giant VanEck, launched its memecoin index on Oct. 31, 2021. It includes the six largest memecoins: Dogecoin at a 30.7% allocation, Shiba Inu at a 28.3% allocation, 14.5% Pepe, 12.5% Dogwifhat (WIF), 7.14% Floki Inu (FLOKI) and 6.7% Bonk (BONK) tokens.
The “high risk, high return strategy” makes memecoins attractive for investors with a speculative nature and will likely keep the top coins relevant, according to Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero. Lian told Cointelegraph:
“This creates a viral effect that can lead to rapid price increases. Many investors are attracted to the potential for quick, high returns. Memecoins are known for their volatility, which can result in substantial gains for traders who time their investments right.”
Looking at the memecoin fund’s individual components, Pepe was the biggest gainer, rising 482% YTD, followed by Floki, up 372%, and Shiba Inu, up 112%, taking third place. Bonk was the worst performer, up over 59% YTD, but still beating the returns of the S&P 500 by over sixfold.
Memecoins often deliver exponential returns, even compared to some of the top cryptocurrencies. Compared to the memecoin index’s 137% appreciation, the top altcoins, excluding the 10 largest cryptocurrencies, saw their market caps only rise 24% YTD.
Top altcoins experience weekly sell-off
Despite the profitable yearly returns, the six largest memecoins saw a sell-off this week, raising concerns of a potential end to the memecoin season. Over the past five days, Dogwifhat fell over 15% as the biggest loser, while Pepe fell over 5% — the smallest decline among the top memecoins.
Since memecoins hold no underlying utility, it’s difficult for traders and technical analysts to predict their price action, which is mainly driven by social media hype cycles for each memecoin.
Trading volume is often used to gauge sentiment around memecoins. Weekly memecoin trading volume has been declining since early March across all blockchains, as reported by Cointelegraph.
Source: https://cointelegraph.com/news/marketvector-memecoin-index-surges-2024
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.