Capital.com recently published a cryptocurrency market report for the second quarter of 2022. The report reveals quite striking results. Accordingly, Capital analysts say that institutional investor funds are flowing into some cryptocurrencies, despite the Bitcoin bear market. The most notable crypto assets among these are meme coin projects.
Investor wins despite these 2 memes coin bear market
Capital.com has released a report examining retail investor trends in the second quarter. The report shows that even as the crypto market deteriorates, meme coin projects continue to be popular with investors. According to trade data, institutional investors are most investing in 2 meme coins. These are Dogecoin (DOGE) and Shiba Inu (SHIB) respectively. The report said the following on the subject:
“Capital.com group data shows that since May 7, our investors have maintained their relative exposure to SHIB and DOGE.”
Elon Musk influence continues
The brokerage firm’s analysis reveals that Tesla CEO Elon Musk is linked to an increase in trading activity. Accordingly, the billionaire’s takeover of Twitter for $43 billion led to an increase in Dogecoin purchases. The report shows that there was a significant increase in daily trading activity on the day the Twitter news first appeared. Also, this meme is very compatible with the coin trend. As we reported as Kriptokoin.com, meme coins usually get their value increases from trends. The value of a meme coin is dependent on its constantly sharing community and breaking news. As it is known, Dogecoin has not revealed an exciting innovation in the crypto community for a long time. Therefore, Musk’s acquisition of Twitter, known as the “Father of DOGE”, may have started this hype.
What Capital has said paints a similar picture. The firm says Musk’s news led to a 383% increase in memecoin investments on Capital.com’s group platform. He then points out that this increase is not a surprise given the nature of meme coins. Trade levels for DOGE and SHIB remained at similar levels in Q2 as they were in Q1, Capital’s report said. However, the platform’s investors’ interest in Bitcoin and Ethereum has decreased. The firm commented on this result as “it draws the attention of all investors to DOGE and SHIB”. At the time of writing, the leading meme coin project DOGE was trading at $0.069, up 3% daily. Its rival, SHIB, however, was down 2.5% at $0.00001168.
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