MarketVector Meme Coin Index Soars, Outperforming S&P 500 Amid Market Sell-Off Concerns
Summary:
The MarketVector Meme Coin Index (MEMECOIN) has grown over 137% since the start of 2024, drastically outperforming the S&P 500. The index includes six leading memecoins and has been attractive to speculative investors due to its high-risk, high-reward nature. Pepe coin was the biggest earner this year with a 482% growth, followed by Floki and Shiba Inu. Despite this successful run, the top memecoins have recently experienced a sell-off, raising concerns about the end of the memecoin dominance. The unpredictable nature of memecoin makes it difficult for technical analysis.
Since the start of 2024, the MarketVector Meme Coin Index (MEMECOIN) has skyrocketed by more than 137%, leading the charge among the top trending memecoins. This year, MEMECOIN has beaten the S&P 500 index by a factor of 15 in performance. TradingView data reveals that while the S&P 500 has only grown 9.3% this year, the memecoin index has shot up 137% so far this year and a whopping 186% compared to last year, with a trade value of $76.60 as of 8:52 am UTC.
VanEck’s subsidiary MarketVector initiated its memecoin index on October 31, 2021. This diversified index comprises the six biggest memecoins: Dogecoin (DOGE) with 30.7%, Shiba Inu (SHIB) with 28.3%, Pepe (PEPE) with 14.5%, Dogwifhat (WIF) with 12.5%, Floki Inu (FLOKI) with 7.14% and Bonk (BONK) tokens with 6.7% allocation each. Emphasizing the “high-risk, high-reward” nature of memecoins, Anndy Lian, renowned blockchain authority and author of NFT: From Zero to Hero, suggests that speculative investors may find them enticing due to their potential for sudden, significant profits resultant from their volatility.
Focusing on individual elements of the memecoin fund, Pepe emerged as the biggest earner with a growth of 482% this year, with Floki up 372% and Shiba Inu increasing 112%. Meanwhile, Bonk saw the smallest increase among the group at 59% year-to-date, but still offering six times the return of the S&P 500.
Despite the robust annual returns, the leading memecoins saw a sell-off over the past week, triggering concerns of the end to memecoin dominance. Over the last five days, Dogwifhat fell by over 15%, marking the steepest loss, while Pepe recorded the smallest drop of over 5%.
Predicting memecoin price movement is complex for traders and technical analysts since memecoins lack an underlying utility. Their price mainly relies on social media hype cycles. One reliable indicator of memecoin sentiment typically used is trading volume, which has been consistently decreasing across all blockchains since early March, as indicated by Cointelegraph.
Published At
5/9/2024 1:54:12 PM
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