Bybit's Latest Report Unveils Surging Enthusiasm for Meme Coins Across Institutional and Retail Investors

A recent report from crypto exchange Bybit sheds light on the rising prominence of meme coins in crypto portfolios. Institutional and retail investors alike have shown increasing interest in these unconventional assets, although their investment behavior differs.

Rise and Fall: Institutional and Retail Trends in Meme Coin Investments

According to Bybit's report titled "Beyond the Hype: The Realities of Institutional Memecoin Investments," meme coins saw a substantial surge in institutional allocations from February to March. Institutional holdings of meme coins rose by 226%, reaching $204 million. This interest continued into April, with holdings climbing to $293.7 million.

However, as market sentiment soured, institutions swiftly offloaded half of their meme coin holdings, ending with a $139 million allocation, still 125% higher than the beginning of the year.

Retail investors also joined the meme coin frenzy, with holdings skyrocketing by 478% from February to April, peaking during early April mania. However, they subsequently reduced their allocations from $567 million to $371 million.

Meme Coin Preference: Dogecoin Leads Amid Retail and Institutional Investors

Dogecoin (DOGE) remains the preferred meme coin for both retail and institutional investors, with 36.17% and 24.58% allocations, respectively. Ethereum-based meme coins like PEPE and SHIB also gained traction, with retail investors holding 20.95% in PEPE and 14.61% in SHIB, compared to institutions' 22.23% in PEPE and 10.39% in SHIB.

Retail investors tend to allocate a larger portion (4%) of their portfolios to meme coins compared to institutions (2.5%). However, both groups primarily invest in established meme coins with longer track records, such as DOGE, reflecting their confidence in these assets' long-term potential.

Bybit's report highlights the growing popularity of meme coins among investors, particularly during market peaks. However, it also underscores differences in investment strategies between retail and institutional players, as well as their preference for established meme coins.