Institutional Inflows Leave Memecoins Behind as DOGE, SHIB Market Value Hits 3-Year Low

Institutional money is pouring further into the cryptocurrency market, cooling enthusiasm for memecoins, CoinDesk reported.

In its Daybook newsletter on July 24, CoinDesk wrote that the crypto market is maturing as institutional participation expands, with memecoins paying the price. As market leadership shifts toward sectors favored by institutional capital, the share of speculative money flowing into memecoins has shrunk.

CoinDesk said the combined market capitalization of Dogecoin (DOGE) and Shiba Inu (SHIB) has dropped to $13.27 billion, the lowest level in about three years. The two tokens have fallen about 2.3% this month, while Bitcoin (BTC) has risen 10% over the same period.

The contraction is also stark relative to Bitcoin's market value. The combined market capitalization of DOGE and SHIB now equals just 1.02% of Bitcoin's $1.3 trillion market capitalization, the lowest level on record.

CoinDesk said that compares with the 2021 memecoin frenzy, when the combined market capitalization of DOGE and SHIB climbed to 7% of Bitcoin's market value, underscoring a sharp shift in capital flows.

Rising institutional participation is a key reason for the change, CoinDesk said. Since the launch of US spot Bitcoin exchange-traded funds in 2024, the market's institutionalization has accelerated. Institutional investors also tend to view Bitcoin as a macro asset rather than favoring memecoins.

The rise of sectors linked to traditional finance, including real-world asset tokenization, or RWA, has also pulled money away from memecoins. CoinDesk said capital that once chased speculative memecoins is now concentrating in Bitcoin and major market sectors. With high interest rates adding pressure, the era of easy money in memecoins is over, it added.