The meme coin market has been progressing at a great pace in recent months. In this respect, The US asset manager VanEck’s subsidiary MarketVector released its exclusive project “Meme Coin Index” in 2022. This index is showing a cumulative profit of 138% in 2024. Dogecoin’s rise of up to 30.77% this year and Shiba Inu’s 28.34% rise made this index successful. The platform has also covered the progress of the rest of the meme tokens such as BONK ($BONK), Floki Inu ($FLOKI), and Dogwifhat ($WIF).
MemeCoin Index Becomes Best Performing Index on MarketVector of VanEck
VanEck operates as a well-known investment platform that is famous for exchange-traded funds. The respective index keeps the record of the prominent 6 meme tokens. Meme coins come into the category of crypto assets that often take inspiration from internet jokes. The index works as a market capitalization-weighted index. The project reportedly selects the holdings in line with their market value.
The index includes the top 6 meme tokens, each token’s weighting has a different capitalization. The respective diversification assists in minimizing the hazard in comparison with just holding any one of the meme coins. Dogecoin (the largest meme coin) and Shiba Inu have taken the 1st two spots. While the profit of DOGE is up to 30.77%, Shiba Inu secures a weighting of nearly 28.34%.
In addition to this, the index disclosed a 14.51% weighting of the meme coin Pepe. In the case of Dogwifhat, the index showed a 12.54% weighting. As per the Meme Coin Index (also known as the MEMECOIN index), Floki Inu possesses a weighting of almost 7.14%. Furthermore, Bonk’s weighting stands at approximately 6.7%. A noteworthy thing is that VanEck has included a disclaimer with its MEMECOIN index.
The disclaimer says that the respective tokens just fulfill entertainment purposes. The respective thing points toward the in-built speculative nature and volatility of meme coins. In this respect, the trends on social media often drive the progress of these tokens. Hence, they get a significant influence from the hype instead of the conventional investment fundamentals.
Despite Their Volatility, Top Entrepreneurs Believe in Meme Coin Sector’s Rise
At present, the digital asset world is continuously advancing, with the meme coin interest igniting discussions regarding their potential and legitimacy as investment options. Top entrepreneurs like Justin Sun (the founder of Tron) have asserted that the meme coin world is here to stay. They expect huge rises in this market in the future.