A recent report by Gemini has revealed a surprising trend among cryptocurrency enthusiasts: the majority of newcomers to the digital asset space are starting their journey with meme coins before diversifying into more established cryptocurrencies. As of June 2025, this phenomenon is reshaping crypto investment patterns not only in the United States but also in key global markets such as the United Kingdom and Singapore.
The Draw of Meme Coins
Meme coins, often seen as the playful side of crypto, have gained an unexpected foothold among novice investors. These coins—like the infamous Dogecoin and its brethren—are capturing the imagination of a new generation of traders. According to the Gemini report, users are initially attracted by the affordability and viral nature of these coins, which often feature as much whimsy as they do volatility.
“There’s a certain allure to meme coins,” says crypto analyst Jane Morley. “They’re accessible, fun, and—at least initially—seem like a low-stakes entry point into the crypto world. But this initial attraction is potentially a gateway into broader, more serious crypto investments.”
In the UK and Singapore, this trend mirrors what is happening stateside. These regions have seen a surge in interest following the pro-crypto agenda advocated by figures like Donald Trump, who has been vocal about reforming the SEC to facilitate crypto growth. His campaign promises, coupled with the launch of meme coins, have seemingly influenced investor sentiment, propelling meme coins into the spotlight. This is further evidenced by recent developments such as Nasdaq’s application to list a Dogecoin ETF, highlighting the growing institutional interest in meme coins.
The Broader Market Impact
While meme coins are often dismissed as speculative by seasoned investors, their rise marks a noteworthy shift in market dynamics. With the likes of Dogecoin and Shiba Inu frequently making headlines, they have become a cultural phenomenon that can’t be ignored. This meme coin mania has invigorated crypto markets by drawing in a demographic that might otherwise remain on the sidelines. As explored in our recent coverage of Elon Musk’s influence on Dogecoin, the cultural and celebrity endorsements continue to play a significant role in meme coin popularity.
According to the Gemini report, many of these new investors eventually branch out, expanding their portfolios to include more established cryptocurrencies like Bitcoin, Ethereum, or even venturing into DeFi platforms such as Lido and EigenLayer. This progression underscores a growing sophistication among retail investors who, despite starting with meme coins, quickly learn the ropes of digital asset trading.
“There’s a learning curve,” notes blockchain strategist Tim Hargreaves. “But once people get a taste of the market dynamics through meme coins, they often transition to more stable assets, driven by both curiosity and a desire for more substantial returns.”
Historical Context and Future Outlook
Historically, the crypto market has been characterized by its cyclical nature and susceptibility to hype. The current meme coin trend, while echoing past speculative frenzies, is differentiated by its wide-reaching influence across geographies and demographics. In the past, similar trends have led to significant innovations and shifts within the market, suggesting that the current meme coin fascination could be a precursor to broader changes.
However, the sustainability of this trend remains under scrutiny. Some experts warn that the meme coin bubble could burst, leaving unprepared investors at a loss. This raises questions about the longevity of meme coins as serious investment vehicles and whether the current enthusiasm will translate into long-term market stability.
Looking ahead, the implications of this trend are multifaceted. While it raises the profile of cryptocurrencies globally, it also challenges regulatory frameworks and prompts discussions about investor protection. As the market continues to evolve, the role of meme coins in shaping future investment strategies and regulatory policies will be closely watched by market participants and regulators alike.
The meme coin phenomenon—whether a passing phase or a permanent fixture—has undeniably left its mark on the crypto sector. As we move further into 2025, the market will be keenly observing whether this trend continues to bolster crypto adoption or if it becomes a cautionary tale about the risks of speculative investments.
Source
This article is based on: Majority of Crypto Users Start With Meme Coins Before Expanding Portfolios: Gemini Report
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
