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Meme Coin Institutional Holdings Surged Since January, Led by DOGE, SHIB, PEPE

Jun 5, 2024
  • Institutional allocations to meme coins have surged over 300% this year, touching a high of almost $300 million in April.
  • The influx highlights professional investors’ growing interest in the sector, according to Bybit.
  • Dogecoin and shiba inu were favored for their liquidity, with BONK the most popular new meme coin.

As a seasoned crypto investor with a keen interest in the meme coin sector, I’ve witnessed firsthand the explosive growth in institutional allocations to this once-niche corner of the market. The surge in investments, which reached an impressive $300 million in April, is a clear indication that professional investors are increasingly drawn to the potential of meme coins.

This year, institutional investments in meme coins have surged by over 300%, reaching nearly a quarter of a billion dollars at their height in April, as reported by crypto exchange Bybit.

According to a report released by Bybit on Wednesday, the surge in interest signifies that the sector is currently experiencing increased preference among institutional investors. Notable choices among this investor group included dogecoin (DOGE) and shiba inu (SHIB), primarily due to their substantial liquidity in the spot market. It’s important to note that the holdings mentioned were limited to those exclusively traded on Bybit, and do not encompass investments made on other exchanges.

Among the newly popular meme tokens that have gained significant attention this year, Solana’s BONK has been the crowd favorite, drawing approximately $75 million worth of investments from institutions.

Meme Coin Institutional Holdings Surged Since January, Led by DOGE, SHIB, PEPE

Holdings dropped to by almost half to $125 million in May as the institutions took profits.

During the specified timeframe, the value of stablecoin holdings decreased from $1.7 billion to $1.4 billion. In contrast, investments in bitcoin (BTC), ethereum (ETH), and meme coins experienced growth.
Based on data from May 1st, I, as an analyst, can report that DOGE held the largest portion of meme coin investments for both individual and institutional investors. Institutional investors dedicated a more substantial chunk of their funds to DOGE – specifically, 36%, contrasting with retail investors’ allocation of 24.5%.
According to Bybit’s analysis, both the retail and institutional investor communities consider DOGE an essential memecoin. However, institutions appear to have a stronger preference for it due to its greater liquidity and stability. Regarding Ethereum-based memecoins like PEPE and SHIB, retail investors hold larger stakes with 20.95% and 14.61%, respectively, while institutional investors own slightly less at 22.23% and 10.39%.

As a blockchain analyst, I’ve noticed an increasing trend in the usage and popularity of meme tokens within the Ethereum and Solana ecosystems over the past few months. These digital assets serve as playful and engaging ways for investors to express their beliefs in the potential growth of these particular blockchains.

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2024-06-06 14:37