VanEck Launched Meme Coin Index To Track Dogecoin, Shiba Inu, WIF, Others

VanEck Launches Meme Coin Index

Asset manager VanEck has ventured into the meme coin realm with the launch of an index that tracks the performance of leading meme coins. This significant development could potentially lead to wider adoption of these tokens.

VanEck's Meme Coin Index

VanEck's MarketVector meme coin index, dubbed 'MEMECOIN,' follows the performance of the six largest meme coins by market capitalization: Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), Floki (FLOKI), and Bonk (BONK).

The index assigns weights to these altcoins based on their market caps. Dogecoin and Shiba Inu hold the most sway in the index with weightings of 30.64% and 28.01%, respectively. Pepe, WIF, Floki, and Bonk are weighted at 14.18%, 13.29%, 7.17%, and 6.21%, respectively. To mitigate risk, the index caps each coin's weighting at 30%.

VanEck acknowledges the inherent volatility of meme coins, which are often driven by hype and social media sentiment. Despite this, the index's launch underscores the growing recognition and acceptance of meme coins.

Addressing Criticisms

Meme coins have faced criticism for lacking utility and having no future in the crypto space. However, this narrative has been challenged by their continued growth and popularity.

Tesla recently announced that customers can purchase merchandise with Dogecoin. The NBA team Dallas Mavericks also accepts Dogecoin as a payment method.

Shiba Inu has expanded its utility with the launch of its layer-2 network, Shibarium, and other innovative projects. The team recently raised $12 million from venture capitalists to develop a layer-3 network focused on user privacy.

These altcoins demonstrate the power of community in the crypto space. Their respective communities have propelled them to remarkable heights, with meme coins like Dogecoin, Shiba Inu, Pepe, and WIF currently ranking among the top 50 crypto tokens by market cap.

It's notable that meme coins have outperformed many other top crypto assets. WIF, the best-performing asset among the top 50, has gained over 1,800% year-to-date.

DOGE price struggles to hold up | Source: DOGEUSDT on Tradingview.com Featured image from LinkedIn, chart from Tradingview.com