The combined value of Dogecoin and Shiba Inu has fallen to its lowest level in three years as institutional capital reshapes crypto markets.
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Memecoin market cap falls to $13.3 billion as institutions crowd into crypto
The combined value of Dogecoin and Shiba Inu has fallen to its lowest level in three years as institutional capital reshapes crypto markets.
The combined market capitalization of Dogecoin (DOGE) and Shiba Inu (SHIB), the two largest memecoins, fell to $13.27 billion, the lowest since September 2023, as institutional participation in crypto accelerated after the launch of U.S. spot bitcoin ETFs in 2024.
The ratio of the two memecoins' combined value to bitcoin's market cap has dropped to 1.02%, the lowest on record, according to TradingView data cited by CoinDesk. At the 2021 peak, DOGE and SHIB together accounted for 7% of bitcoin's market value.
Bitcoin has risen 10% in July to around $64,928, pushing its market cap to $1.30 trillion, while DOGE and SHIB have declined 2.3% in the same period. The divergence shows a structural shift in how capital flows through crypto markets, with money consolidating into bitcoin and institutional-grade assets.
The introduction of spot bitcoin ETFs in 2024 drew in institutional investors with little interest in meme tokens, while higher interest rates worldwide have reduced the speculative appetite that fueled the 2021 memecoin rally. Options market positioning suggests traders expect bitcoin to reach at least $72,000, according to CoinDesk, a level that would further widen the gap between bitcoin and the memecoin sector.
The Institutional Shift
Spot bitcoin ETFs launched in the U.S. in January 2024 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, according to CoinDesk. Capital has also been pulled away by other emerging sectors with links to traditional finance, such as real-world assets.
For every dollar invested in bitcoin at the 2021 peak, seven cents were chasing internet joke tokens. Today that figure is just over one cent, the data show.
Global Macro Headwinds
Higher interest rates worldwide have compounded the pressure on speculative assets. Global bonds have been reeling as an oil surge renews inflation threats, with U.K. gilt yields posting their longest stretch of daily closes above 5% in almost two decades and Germany's 10-year yield climbing to the highest since 2011, according to Bloomberg. The U.S. 30-year yield sits just below the highest since 2007.
In this environment, capital that once chased high-risk memecoin bets is consolidating into bitcoin and other major market sectors. The era of easy money through memecoins is over, according to CoinDesk.
This article is for informational purposes only and does not constitute investment advice.
