Nate Geraci, founder of the ETF Institute, believes the recent downturn in memecoins is due to increased institutional investment in the cryptocurrency market.
He suggests that the influx of Wall Street capital is making it harder for speculative and celebrity-driven tokens to succeed.
Recent data shows a sharp decline in the value of memecoins, with their market cap dropping 28% over the past month. Geraci views this as a positive development for the broader crypto market, arguing that institutional money is now focusing on more substantial assets rather than memecoins, which he criticizes as lacking value.
According to Geraci, the rise in institutional investment, particularly in spot crypto ETFs, has redirected attention away from memecoins. However, some critics dispute this view, noting that Bitcoin dominance has increased without a direct correlation to the memecoin decline.
Meanwhile, crypto analyst Newsy Johnson challenges the notion that memecoins are finished. Johnson argues that claims of memecoins’ demise might be a strategy to promote other cryptocurrencies.
Despite this, recent reports indicate that a large percentage of memecoins have failed in 2024, with around 2,000 tokens disappearing each month. This high turnover rate is partly due to the rapid creation of new tokens on various blockchain networks.
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