Institutional allocations to Memecoins have increased by more than 300% this year

TL; DR

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• Stanley Cups

• The fries at In n’ Out

These are all things we’d file under the heading of “we don’t get the hype, but a lot of people seem to love it.”

(Ready for us to work this into today’s first story? Here it goes…)

It appears that institutional investors are making a similar application to the memecoin space.

(BOOM! The landing was successful).

Twelve months ago, most people would have scoffed if you told them that institutional investors would soon be rushing into memecoins – but here we are.

In fact, institutional allocations to memecoins have increased by more than 300% this year, reaching almost $300 million on the ByBit exchange in April (up from $63 million in January).

What’s the takeaway?

This is not certain, but this could indicate that we are in an accelerated cycle.

Typically, bull runs last ~12-18 months after Bitcoin’s halving (which took place in April) – with new all-time highs being reached for the first time around six months after the halving.

At that point, retail investors begin to move further up the risk curve (into things like memecoins, NFTs, and smaller projects) in an attempt to capture new profits. After that, institutional investors tend to follow suit and push the market to a high – all before everything starts to pull back.

This time, the market reached new all-time highs as both retail and institutions flocked to memecoins for the halving had taken place.

(Which is a first for both).

These accelerated patterns play into the theory that we will see an accelerated breakdown top (and peak) for prices before the year is out.

The downside is: this would mean that we will see a prolonged bear market after such an event.

…I guess we just have to hurry up and wait.