Meme coins are an asset class that has attracted the attention of cryptocurrency investors in recent years and stands out with their price volatility. Meme coins, whose popularity peaked with the bull market in 2021, began to enter the radar of institutional investors. According to a report by Bybit cryptocurrency exchange, institutional investors’ investments in meme coins have increased by over 300% this year. Because it approached 300 million dollars in April. This shows that meme coins are no longer an attractive investment tool only for individual investors, but are also starting to attract the attention of professionals. In the details of the report, it is seen that institutional investors prefer the most liquid meme coin projects, with Dogecoin (DOGE) and Shiba Inu (SHIB) coming to the fore.
Those meme coin projects are in the focus of institutional investors
According to a report from cryptocurrency exchange Bybit, institutional investors’ investments in meme coins have increased by over 300% this year, reaching almost $300 million at their peak in April. This influx shows that the sector is starting to gain new interest among professional investors. In its published report, Bybit said that institutional investors prefer meme coins with the most liquidity. He stated that Dogecoin (DOGE) and Shiba Inu (SHIB) are especially popular. The investment information in the report is followed only through Bybit. For this reason, investments in other stock exchanges are not included. Apart from coins such as DOGE and SHIB, the following 23 altcoins are in the focus of corporates:
Among the popular meme coins this year, the Solana-based BONK was the one that attracted the most attention. It has also received over $75 million in investments from institutional investors. However, in May, institutions sold to make a profit. Thus, meme coin investments dropped by almost half to 125 million dollars. According to the report, stablecoin investments decreased from $1.7 billion to $1.4 billion in the same period. On the other hand, Bitcoin (BTC), Ethereum (ETH) and meme coin investments increased.
How do individual investors act?
As of May 1, the largest meme coin investment among investors was made in DOGE. Institutions allocated a larger portion of their funds to DOGE. A rate of 36.17%, compared to 24.58% of individual investors, attracted attention. “This indicates that both groups view DOGE as a fundamental asset in the meme coin space,” according to the Bybit report. It also shows that institutions prefer these coins due to their higher liquidity and relative stability.
According to the report, both groups are satisfied with Ethereum-based meme coins PEPE and SHIB. Individual users own 20.95% and 14.61% respectively. However, institutions own 22.23% and 10.39%,” he said. In recent months, meme tokens of the Ethereum and Solana ecosystems have attracted attention. Because it stood out as a way to make big profits.
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