BitMEX Exchange deployed its version of an S&P 500 for meme coins on Thursday, effectively becoming the second hub to offer this kind of basket index in 2024.

Meme coins continue to ascend the ranks as crypto adoption continues to grow. Meanwhile, the development comes amid a sector bloodbath, with some altcoins posting double-digit losses.

BitMEX Launches Meme Basket Index Perp

The trading platform called its MEMEMEXTUSDT contract the “S&P 500 for crypto memecoins,” margined in Tether’s USDT stablecoin with up to 25X leverage. Like the premier US stock market index, the S&P 500, which tracks the prices of large-cap US stocks, it will simultaneously track and offer exposure to the top meme coins.

 “Users can bet on the overall performance of the assets in one go, rather than holding individual tokens,” BitMEX wrote in the announcement, adding, “By trading the contract, you get exposure to the entire basket of meme coins in our Meme Basket Index, without having to hold any of the individual tokens.”

Top meme coins featuring in the basket index include Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), Dogecoin (DOGE), and Bonk Inu (BONK). Others include FLOKI, BRETT, BOME, MEME, and MOG. The weighted methodology, which is based on market share, will ensure selection on market value metrics.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

The product comes barely two months after investment firm VanEck launched its MEMECOIN Index. Christened MemeVector, VanEck’s product tracks only the first five tokens that BitMEX mentioned. The asset manager disclaimed, “Coins are intended for entertainment purposes.”

VanEck’s disclaimer came as meme coins were never taken seriously in the past. Forbes describes them as “cryptocurrencies inspired by memes and internet jokes, with little or no fundamental value.” However, some traders believe them to be a global shilling point for speculative liquidity.

“Meme coins may seem unconventional, but they highlight the power of community in crypto,” Tron founder and Huobi Global advisor Justin Sun said during Token2049.

Meme Coins Go Mainstream

Indeed, meme coins are a volatile sector with a tendency for price fluctuations as determined by market sentiment. Nevertheless, they have progressively climbed the ranks in 2024, jumpstarted by the Avalanche Foundation in December, committing to support diverse and culturally significant initiatives.

“The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection. This move complements the Avalanche Foundation’s ongoing engagement across the Avalanche ecosystem, including NFTs, RWAs, and other types of crypto assets, broadening its portfolio to embrace a more complete spectrum of possibilities,” Avalanche wrote.

The Foundation’s commitment to invest in meme coins made the sector a bona fide cryptocurrency niche. Analysts are already predicting that this sector could lead the next altcoin season.

Read more: Best Crypto To Buy Now: Top Coins To Keep an Eye on in July 2024

Therefore, VanEck and BitMEX exchange launches are further advancing the niche. As meme coin adoption continues, more conservative investors could start approaching the scene just as Bitcoin spot ETFs (exchange-traded funds) brought BTC to Wall Street.

“Retail investors are drawn to meme coins because they offer the same opportunities as venture capitalists during seed, pre-seed, and private sale rounds,” Jonas Dovydaitis, Co-Founder & CEO at PAiT, told BeInCrypto.

Meanwhile, meme coins are dumping, with the sector’s market capitalization falling by almost 9% to $42 trillion. This is part of a market-wide crash led by Bitcoin, which is down 5% to trade for $57,459 at the time of writing.

Decentralized physical infrastructure network (DePin) startup Hivemapper’s HONEY token has surged by over 30% in the last 24 hours. Despite Bitcoin plummeting to a two-month low of $57,800 earlier today, HONEY emerged as one of the top gainers on CoinGecko.

This impressive rally was significantly influenced by its recent listing on Kraken, one of the leading cryptocurrency exchanges.

How Can Hivemapper’s HONEY Token Sustain Its Rally?

Kraken announced its decision to list the HONEY token on July 2, and trading commenced the following day. This development seems to have catalyzed the token’s sharp increase in value.

Earlier today, HONEY reached $0.0875, marking its highest value since May 13. Following this peak, however, the token experienced a 10% drop and is currently trading near $0.0772. This retraction likely stems from investors taking profits amidst the rapid price increase.

HONEY needs to close above the resistance level of $0.0832 to sustain its upward momentum. Moreover, it needs to consistently stay above the support level of $0.0722. If it fails to maintain these levels, the token risks losing its recent gains and potentially reverting to previous price levels.

Nonetheless, HONEY is still more than 85% below its peak price in January.

Read more: What Is DePIN (Decentralized Physical Infrastructure Networks)?

Hivemapper, which backs the HONEY token, operates a decentralized mapping network that employs artificial intelligence (AI) and crowdsourced data to create a global map. This platform differs from traditional services because it uses dashcams and mobile phone telemetry, allowing personal and enterprise decentralized applications (dApps) to access current geolocation data.

Notably, Hivemapper’s data collection and expansion rate is significantly faster than traditional mapping services like Google Maps. On June 27, BeInCrypto reported that Hivemapper’s map database expands four to five times quicker than Google’s. This advantage is largely due to its strategy of incentivizing contributors.

Ariel Seidman, co-founder of Hivemapper, praises the company’s unique contributor engagement strategies for the network’s growth. For example, an early adopter named Brad bought 100 Hivemapper dashcams and distributed them to Uber and Lyft drivers, sharing his earned HONEY tokens with them. This strategy significantly expanded the network’s reach and effectiveness.

“So that really helped the network grow because he was identifying the right kind of drivers. He had the capital. A lot of Uber drivers may not have the capital. So that was one really clever example,” Seidman said.

Read more: Top 7 Projects on Solana With Massive Potential

Despite these successes, challenges remain. According to a report by Franklin Templeton, while Hivemapper has successfully mapped 21% of the world’s roads in just 31 months, it struggles with the demand side of its operations. The project has not seen proportional growth in demand compared to the supply of mapping data, which could lead to an inflated token supply and consequent devaluation.