Memecoins
new index to track memecoins
MarketVector by VanEck recently introduced an index dedicated to memecoin, which saw a 195% year-over-year increase. The index includes a variety of popular tokens such as Dogecoin, Shiba Inu, Pepe, Floki Inu, Dogewifhat, and BONK.
Let’s see all the details below.
VanEck’s MarketVector launches memecoin index
As anticipated, VanEck’s MarketVector followed the memecoin trend by introducing a new index dedicated to this popular category of tokens.
MarketVector’s Meme Coin Index, identified by the symbol MEMECOIN, tracks the six most prominent meme tokens, including Dogemoneta (DOGE), Shiba Inu (SHIB) e Pepper (PEPPER). Other index constituents include Dogwifhat (WIF), Floki Inu (FLOKI), and BONK.
Considering the performance of its components, the new MarketVector index grew by over 195% on an annual basis.
For comparison, the CoinDesk 20, which tracks the 20 largest tokens excluding stablecoins, is up 97% over the same period, while Bitcoin (BTC) is up 123%.
According to the data, meme coins have a total market capitalization of around $51 billion CoinGeckowith the MarketVector index tracking $44.67 billion.
Some investment managers have recently reported that the popularity of memecoins may continue due to the low fees charged Solana Blockchain.
This allows users to make small bets with the potential for high earnings, unlike previous crazes limited by high fees on Ethereum.
Additionally, a new category of meme tokens called PoliFi is emerging as election season approaches. The market capitalization of this new category reached $586 million.
One specific token, BODEN, increased by 16% after the former president Donald Trump he spoke about it during an election event. At the same time, MAGA, a Trump-inspired token, rose 28% and TREMP saw a 142% increase.
VanEck CEO: Why invest in semiconductors?
According to the CEO of VanEck, Jan van Eckinvesting in semiconductors could be the most effective strategy to exploit artificial intelligence (TO THE) boom. In particular, during an interview on CNBC’s ETF Edge, he stated:
“Semiconductors have become the heart of the AI business.”
The VanEck Semiconductor ETF (SMH) fund, which includes 25 of the top chipmakers in the United States, is up 21% this year. Although it saw a 6% decline in May, dragged down by declines in similar giants Intel, AMD and Nvidia.
Van Eck argues that this weakness may only be temporary, as growing demand for AI chips offers potential long-term returns:
“They have gone from being a highly cyclical business with short-lived products to an integral part of the growth business, with higher recurring revenues, so they can maintain high profits despite some short-term fluctuations.”
Mike Akinsco-founder of ETF Action, shares a similar view, pointing out that limited competition between major chipmakers could support the group, as explained:
“Until competition increases significantly, it is difficult to see this industry losing momentum.”
However, Akins cautions to carefully monitor fund flows into the semiconductor sector as an indicator of future performance.
This suggests that very low flows may indicate a buying opportunity, while high flows may suggest it is time to reduce positions.