As a seasoned crypto investor with a keen interest in market trends, I find the recent report by Bybit on institutional investors’ involvement in meme coins intriguing. The data suggests that these large-scale investors have been actively trading and accumulating Dogecoin, Shiba Inu, and other popular meme coins since early this year.
Recently, Bybit Exchange announced a report revealing the significant investment of institutional investors in meme coins like Dogecoin and Shiba Inu. The report indicated that these investors have been actively trading these coins since the beginning of the year and specified which ones they currently hold.
How Institutional Investors Have Been Going All In On Meme Coins
Based on the findings of the report, institutional investors started purchasing large quantities of meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) between February and March. This period marked the beginning of the meme coin trend’s significant growth. The value of these investors’ holdings in these specific meme coins is estimated to have risen by a striking 226%, reaching approximately $204 million.
Institutional investors continued to increase theirmeme coin investments in April, amassing a total of $293.7 million worth. Yet, they seemed to have sold off their positions as the hype around meme coins reached its peak, reducing their holdings to approximately $139 million by May.
Some investors may have sold off their holdings in meme coins in expectation of price declines brought about by widespread profit-taking. Conversely, others have increased their investments in these crypto tokens, underscoring their growing popularity among investors since the new year.
Institutional investors’ fascination with meme coins was underscored by VanEck’s introduction of an index to monitor the market’s leading meme coins: Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), Floki (FLOKI), and Bonk (BONK).
Retail investors saw a substantial increase of 478% in their investments in meme coins between February and April, according to Bybit’s latest data. However, similar to institutional investors, they also offloaded a considerable amount of these assets, decreasing their total meme coin holdings from $567 million to $371 million.
Dogecoin Tops Meme Coin Holdings Of Institutional And Retail Investors
According to Bybit’s recent disclosure, Dogecoin is the preferred meme coin among institutional and retail investors, holding the largest share in their respective portfolios. Institutional investors have invested a greater proportion (36.17%) in Dogecoin compared to retail investors (24.58%).
Institutional and retail investors have shown preference towards Dogecoin in both categories due to its greater liquidity and more stable nature. On the other hand, Shiba Inu and Pepe, being Ethereum-based meme coins, also hold substantial weight in the meme coin investments of institutions and individual investors.
Approximately 20.95% and 14.61% of meme coins held by retail investors are Shiba Inu and PEPE respectively. Conversely, institutions have invested around 22.23% and 10.39% of their meme coin holdings in these two digital currencies. Among the newer meme coins, BONK, which is based on the Solana blockchain, received the largest allocations from both retail investors with $136 million and institutions with $74.5 million.
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2024-06-06 00:11