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VanEck debuts MarketVector “MEMECOIN” index for BONK, FLOKI, DOGE, PEPE, WIF, and SHIB tokens
VanEck created a meme coin index of top and worst performers.
The asset manager states that “coins are intended for entertainment purposes.”
A cat may appear in this index as MEW and POPCAT continue to dominate.
Bitcoin ETFs monitor BTC price, but $90 billion asset manager VanEck established MEMECOIN to track the sector's top and worst performances.
VanEck tracks meme coins with a specific index.
VanEck has created an index to compare the top meme coins, Bonk Inu (BONK), Floki Inu (FLOKI), and Dogecoin (DOGE), to the worst, Pepe, Dogwifhat, and Shiba.
Popular for its HODL ETF, VanEck's MarketVector meme coin index, MEMECOIN, analyzes the sector's six biggest players' market capitalization. This weighted technique ensures market value-based holding selection. Respective coin weightings will be restricted at 30% for risk diversification.
DOGE (30.64%) and SHIB (28.01%) lead index weightings. PEPE (14.18%), WIF (13.29%), FLOKI (7.17%), and BONK (6.21%) also appeared.
Knowing meme coins are a worldwide shelling point for speculative liquidity, the asset manager disclaims that “The coins are intended for entertainment purposes.” This shows the sector's volatility and market sentiment-driven price changes. Because of this, some think cat-themed tokens might enter the index shortly.
However, VanEck's MEMECOIN index shows that meme coins are increasing popularity. Justin Sun, Tron creator and Huobi Global adviser, addressed meme currencies at Token 2049. His follow-up article on X noted, “Meme coins may seem unconventional, but they highlight the power of community in crypto.”
The area is becoming a bitcoin specialty. In late 2023, Avalanche Foundation will invest in sector tokens, bolstering this rise.
In December, the organization announced intentions to acquire "select Avalanche-based meme coins to create a collection" to expand its portfolio "to embrace a more complete spectrum of possibilities."
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