2024 has seen a surge in the popularity of meme coins, with the category crossing a market capitalization of $100 billion. The divide between top crypto tokens, such as Bitcoin, and meme coins has become increasingly apparent, with the latter experiencing significant losses in recent weeks.

Bitcoin vs Meme Coins: A Divide in the Crypto Market

Bitcoin has seen a 125% year-to-date gain, solidifying its position as a top crypto token. In contrast, meme coins, including Dogecoin, Shiba Inu, and Pepe, have erased between 11% and 13% of their value in the past week.

Meme Coin Trends Dominate Crypto Narratives

A recent report highlights that meme coins have captured a combined 30.67% of global investor interest. This trend is driven by speculative gains, with traders focusing on dog and cat-related meme coins, pop culture references, and internet personality-themed meme tokens.

While Bitcoin has garnered institutional attention and capital allocation, meme coins have seen a 6% year-on-year increase in interest from crypto market participants. Four meme coin-based trends rank among the top 20 narratives in crypto, including Solana, Base, and Artificial intelligence and cat-themed meme coins.

Institutional Meme Coin Holdings on the Rise

Institutional investors have tripled their holdings in meme coins, with spot holdings climbing from $62.5 million to $204.8 million between February and March 2024. This marks a 226% surge, indicating a significant spike in interest in the memecoin market.

β€œOur report β€˜Beyond the Hype’ shows that institutional and retail investors are actively leveraging the opportunities presented by the memecoin market. The strategic agility of institutions and the dynamic management by retail investors reflect a sophisticated engagement with these assets.” – Eugene Cheung, Head of Institutions of Bybit

Dogecoin ETF on the Horizon?

Rising institutional adoption has raised questions about the likelihood of approval for meme coin ETFs. Nate Geraci, President of ETFStore, expressed surprise that an issuer has yet to file for a Dogecoin ETF, citing the potential for a marketing expense as the only downside.

Bitcoin and Meme Coin Divide: What’s at Stake?

Ruslan Lienkha, Chief of markets at YouHodler, notes that the divide between Bitcoin and meme coins runs deep. While Bitcoin has gained acceptance as β€œdigital gold” and a hedge against fiat currency devaluation, meme coins are considered speculative tokens.

This divide could influence the approval of a meme coin ETF, further investment from institutional investors, and retail participation in the category in the second leg of the bull market.

Key takeaways:

β€’ Meme coins have crossed a market capitalization of $100 billion.
β€’ Bitcoin has seen a 125% year-to-date gain, while meme coins have erased between 11% and 13% of their value in the past week.
β€’ Institutional investors have tripled their holdings in meme coins.
β€’ A Dogecoin ETF is likely in 2025, with Nate Geraci expressing surprise that an issuer has yet to file.
β€’ The divide between Bitcoin and meme coins runs deep, with Bitcoin gaining acceptance as β€œdigital gold” and a hedge against fiat currency devaluation.

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