Despite the high volatility and risks associated with memecoins, U.S. crypto investors continue to pour money into these speculative assets, according to a new report by Kraken.
The report, published Wednesday, is based on a survey of nearly 800 crypto holders in the United States conducted on January 9, 2025. The findings reveal that memecoins remain a dominant trend in the market, driven largely by the perception of high rewards and social influence.
High-Risk, High-Reward: Investors Still Betting on Memecoins
According to Kraken’s survey, a staggering 85% of respondents reported having invested in memecoins, with 76% stating that they believe the potential rewards justify the risks.
Interestingly, 44% of respondents believe that memecoins will enhance the credibility of the crypto market, despite their speculative nature. Meanwhile, 42% expect memecoins to outperform other cryptocurrencies in 2025, further highlighting their popularity among investors.
Among the top motivations for investing in memecoins:
- Fear of missing out (FOMO) ranked as one of the most common reasons.
- Recommendations from friends and family played a significant role in driving investment.
- Many respondents said they were drawn to the “fun” and cultural appeal of these tokens.
Memecoins Dominate Headlines for the Wrong Reasons
While memecoins continue to attract widespread interest, they have also been at the center of several high-profile controversies.
The most recent example is the LIBRA token rug pull, which had ties to Argentina’s government. The Solana-based memecoin surged to a $4.5 billion market cap before collapsing by 90%, leaving many investors with significant losses.
Despite such risks, the survey found that 29% of memecoin investors cited short-term gains as their primary motivation, while 23% saw them as a means of portfolio diversification.
Women More Likely to Invest in Memecoins Than Men
Kraken’s research also revealed an interesting demographic trend: female investors were slightly more likely to invest in memecoins than their male counterparts.
- 86% of female crypto holders reported investing in memecoins.
- 84% of male crypto holders said they had invested in these assets.
The findings suggest that memecoins have broad appeal across different demographics, attracting both seasoned investors and newcomers looking for quick returns in the crypto space.
A Speculative Trend That Shows No Signs of Slowing
Despite concerns over volatility, regulatory scrutiny, and the potential for scams, memecoins continue to capture investor interest in the U.S. crypto market. With increasing mainstream attention and the influence of social media trends, memecoins may continue to play a prominent role in shaping crypto investment patterns in 2025.
