- Memecoins boomed in 2024, with a $50.8 billion market cap and excessive returns.
- VanEck’s Memecoin Index mirrored upon the speculative nature of memecoins.
In 2024, although Bitcoin [BTC] took middle stage with its spot Trade Traded Fund (ETF) approval and halving occasion, it’s not possible to disregard the memecoin mania.
Based on CoinGecko, the memecoin market cap was at $50.8 billion on the time of writing.
Reportedly they have been, by far, probably the most worthwhile crypto narrative with returns of greater than 1300% on common throughout the highest tokens.
Controversies surrounding memecoins
Nonetheless, amidst these optimistic growths, the controversies surrounding memecoins cannot be ignored.
Remarking on the identical, memecoin dealer Ansem in a latest dialog with the “Unchained” podcast, mentioned,
“I think it’s more of like an attention thing, and like an internet thing, than really like thinking about teams that are building out products.”
Including to the fray, Kelxyz, a memecoin dealer in the identical dialog famous,
“With crypto and the ability to tokenize anything, financialize anything, it makes sense that memecoins would end up capturing a lot of that attentional flow and in turn some of that value as well.”
This highlighted that memecoins confirmed each development and controversy, whereby the excessive market cap and returns contrasted with questions on worth and function.
All about VanEck’s memecoin index
The memecoin craze was additional confirmed by VanEck’s stride into the memecoin market.
Shedding gentle on the identical, Matthew Sigel, VanEck’s Head of Digital Property took to X (Previously Twitter) and famous,
“VanEck’s @MarketVector launches $MEMECOIN index, top 6 assets, 30% cap.”
Supply: MarketVector
He even issued a phrase of warning and added,
“These coins are intended for entertainment purposes”
Nonetheless, seeing the potential for the memecoin asset class, an X person @free_electron0 mentioned,
“And so it starts. The introduction of the ‘memecoin asset class’ to the world by TradFi.”
Memecoin’s future outlook
Ansem defied memecoin controversies by highlighting their substantial earnings, surpassing any related losses. He claimed,
“Looking at price is valid because anything that people can speculate on whether it’s like stocks, crypto, altcoins, Bitcoin, Ethereum…people can buy the top and lose money. Hence, that’s not really specific to memecoins.”
