In 2024, meme coins have become a significant narrative in the cryptocurrency landscape, creating a division between various crypto tokens. Bitcoin, with robust 125% year-to-date gains, remains a standout, while the overall market capitalization of meme coins has surpassed the $100 billion mark. Dogecoin, Shiba Inu, and Pepe, the top meme coins, have seen declines of 11% to 13% in value recently, while Bitcoin is consolidating near $95,000, staying 12% below its all-time high.
Meme coins captured 30.67% of global investor interest according to CoinGecko, with traders focusing more on speculative gains than fundamentals. This year has seen significant attention to meme coins themed around pop culture and internet trends, despite Bitcoin’s increasing institutional interest following the approval of Spot BTC ETFs.
New trends within meme coins, such as Solana, Base, AI, and cat-themed tokens, have gained substantial interest, with institutional meme coin holdings tripling this year, climbing from $62.5 million to $204.8 million. Bybit’s report highlights this rapid rise as institutions and retail investors capitalize on opportunities in the meme coin market.
Speculation now surrounds the approval of meme coin ETFs, with particular anticipation for a potential Dogecoin ETF in 2025. Rising institutional adoption fuels this expectation, yet debate persists due to the speculative nature of meme coins and their lack of real-world utility. This contrasts with Bitcoin, often termed “digital gold” and used as a hedge against fiat devaluation.
The divide between Bitcoin and meme coins is stark, with Bitcoin’s status as a stable store of value contrasting against the speculative allure of meme tokens. This divide continues to influence potential regulatory and investment dynamics, casting a shadow on the future prominence of meme coins in the cryptocurrency ecosystem.
