Crypto's institutional influx has killed the memecoin craze
CoinDesk 2026-07-24 11:35:48
Context: The memecoin craze, led by Dogecoin (DOGE) and Shiba Inu (SHIB), has declined significantly as institutional investors increasingly participate in the cryptocurrency market. The market capitalization of DOGE and SHIB has dropped to $13.27 billion, the lowest in three years. This decline is attributed to the growing institutionalization of the market, accelerated by the introduction of U.S. spot bitcoin ETFs in 2024.
Key Facts
- The combined market capitalization of DOGE and SHIB has fallen to $13.27 billion, down about 2% this month alone, despite bitcoin's 10% rise.
- The ratio of the top two memecoins' market capitalization to bitcoin's market cap of $1.30 trillion now stands at just 1.02%, the lowest on record.
- In 2021, at the peak of memecoin mania, DOGE and SHIB together accounted for 7% of bitcoin's market cap, meaning that for every dollar invested in bitcoin, seven cents were invested in internet joke tokens.
- The introduction of U.S. spot bitcoin ETFs in 2024 has accelerated the institutionalization of the market, drawing in investors who have little interest in meme tokens and significant interest in bitcoin as a macro asset.
- The aggregate value of DOGE and SHIB has slid to $13.3 billion, the lowest level since September 2023, and is down 2.3% in July alone, despite gains in bitcoin.