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The giant investment company joined the meme coin craze with its new index.
Asset management giant VanEck has launched an index that tracks meme coins, the most volatile altcoin sector in the crypto market with high return potential.
The index called MEMECOIN, launched by VanEck through its subsidiary MarketVestor Indexes, includes Dogecoin (DOGE), #Shiba Inu (SHIB), #Pepe (PEPE), #Dogwifhat (WIF), Floki Inu (FLOKI) and Bonk, which are currently the 6 most popular meme coins. (BONK) is following.
The weight of meme coins followed in the index is determined according to their market values. Accordingly, the highest weight in the portfolio belongs to Dogecoin with 30.77% and Shiba Inu with 28.34%.
The Meme coin index attracted attention by registering a significant gain of 195% since its launch.
While VanEck emphasizes that the index offers an impressive return, he also emphasizes that the basis of the assets followed are for entertainment purposes and that investment in these assets is speculative.
Meme coins have offered tremendous profits in the past years, especially #DOGE and #SHIB . However, at that time, the fact that many meme coins were Ethereum-based and therefore subject to high transaction fees was a negative situation that disrupted the development of the industry.
In the current period, the Solana network, which stands out with its high transaction speed and low transaction fees, has become the center for the meme coin market. On the other hand, Avalanche's decision to invest in the meme coin market, one of the largest layer-1 networks, strengthened the views that the sector will maintain its popularity for longer than expected.
The Meme coin market today has a market value of close to 50 billion dollars, according to Coinmarketcap data, and the average daily transaction volume of these assets continues to be around 4.1 billion dollars.
