Growing institutional participation is changing the crypto market’s capital structure, and CoinDesk says memecoins are taking the hit.
In a July 24 excerpt from its Daybook newsletter, CoinDesk said the combined market capitalization of dogecoin (DOGE) and shiba inu (SHIB), the two largest memecoins by value, has fallen to $13.27 billion. That is the lowest level in three years. The pair is also down about 2% this month, even as market leader bitcoin has risen 10%.
DOGE and SHIB now account for just 1.02% of bitcoin’s market value
CoinDesk said the shift becomes clearer when the two memecoins are measured against bitcoin’s $1.30 trillion market capitalization.
That ratio now stands at 1.02%, the lowest on record. The report set that against the 2021 peak of memecoin mania, when DOGE and SHIB together were equal to 7% of bitcoin’s market cap. Put another way, every $1 invested in bitcoin at that time was matched by $0.07 chasing internet joke tokens. Today, that figure is only a little above $0.01.
Bitcoin has expanded substantially since 2021, and CoinDesk said that means memecoins have not only lost value in dollar terms. They have also lost ground against the asset that still defines the broader crypto market cycle.
Spot bitcoin ETFs and institutionalization reshaped the flow of capital
The report pointed to a broader rotation in crypto capital. According to CoinDesk, the launch of U.S. spot bitcoin ETFs in 2024 accelerated the market’s institutionalization by bringing in investors with little interest in meme tokens and much stronger interest in bitcoin as a macro asset.
Capital has also been drawn into other emerging sectors tied more closely to traditional finance, including real-world assets. Money that once chased speculative memecoin trades is now consolidating into bitcoin and other major parts of the market.
CoinDesk added that this rotation has taken place alongside higher interest rates around the world. In its view, that combination suggests the period of easy money through memecoins is over.
Options positioning still shows a constructive near-term BTC view
For the short-term market outlook, CoinDesk said options market positioning still points to a constructive tone among traders. Expectations in that market imply a BTC move to at least $72,000.
The chart note in the article said the combined market value of DOGE and SHIB has slipped to roughly $13.3 billion, the lowest since September 2023. The pair is down 2.3% in July alone despite gains in bitcoin, a sign of how far these once-crowded trades have fallen out of favor.
Other topics highlighted in Daybook
In its “What’s trending” section, CoinDesk also flagged several macro and policy stories shaping the day’s backdrop:
- CNBC reported that U.S. President Donald Trump said he would soon decide whether to launch a “massive” and “bigger than ever before” attack on Iran after the conflict expanded to the Red Sea.
- CoinDesk reported that negotiators from the industry and Congress had been working toward an Aug. 7 final draft of the Clarity Act and passage this year, but Senate Majority Leader John Thune said that outcome now appears unlikely.
- Bloomberg reported that global bonds are under pressure again as higher energy prices revive inflation concerns. U.K. gilt yields have logged their longest stretch of daily closes above 5% in almost two decades, Germany’s 10-year yield has climbed to the highest since 2011, Japan’s 40-year yield has risen 10% and its 5-year yield is at the highest since 2000, while the U.S. 30-year yield is just below its highest level since 2007.
Additional crypto items listed on the page
The page also displayed a list of other crypto market headlines:
- The European Union unveiled a 21st sanctions package against Russia targeting a $120 billion crypto network.
- Crypto market maker B2C2 held sale talks with multiple potential buyers.
- A $5 billion cluster has formed in bitcoin options and was presented as a bullish signal.
- Bitcoin settled near $65,000 as oil’s push toward $100 did not unsettle the market.
- Poolin, once bitcoin’s biggest mining pool, is now filing for bankruptcy.
- Bitcoin treasury companies are selling assets, repaying debt and shifting toward AI after share prices collapsed.
- India ordered the takedown of Bitchat, a bitcoin-linked messaging app tied to Jack Dorsey.
- BitMEX is facing a proposed class-action suit alleging theft and insider trading as the exchange shuts down.
- A live market update said dogecoin and ether led a pullback as investors digested technology earnings.
- Ripple’s RLUSD received two boosts even as transfer volume fell 25%.
A separate summary on exchange flows and market share
Under the heading “Crypto Flows, Share and the Selective Rotation,” CoinDesk added that markets have repositioned since June, but Binance has held its share at about 55% of user funds and around 24% of spot trading. It also drew net inflows in early July while the tracked market as a whole saw outflows.
The excerpt ended with the prompt “Why it matters:” but did not provide further detail in the input.