Meme coins are no longer just a punchline in the crypto world.
A new study from Gemini shows that internet-born tokens have become the entry point for more than 30% of new cryptocurrency users in major markets such as the United States, the United Kingdom, and Australia.
According to the State of Crypto 2025 report, meme coins like Dogecoin and PEPE are drawing not only new investors but also acting as stepping stones to established digital assets such as Bitcoin (BTC) and Ethereum (ETH).
These findings highlight a broader shift in investor behavior and an increasing convergence between retail trends and institutional approaches.
Gemini report identifies meme coins as onboarding tools for new crypto users
The report draws on survey data from 7,205 respondents across six countries and reveals that meme coins often serve as early training wheels for newcomers to the space.
In the United States, 31% of those who hold both meme coins and traditional cryptocurrencies said they bought meme tokens first.
This pattern is echoed in other markets: 30% in Australia, 28% in the United Kingdom, 23% in Singapore, 22% in Italy, and 19% in France reported the same.
This change in entry behavior reflects the growing role meme coins play in demystifying wallets, decentralized exchanges, and tokenomics.
Gemini’s data shows that 94% of meme coin holders eventually invest in major cryptocurrencies.
This development underlines that meme tokens often function as gateways on crypto journeys rather than as final destinations.
Institutional participation in crypto rises as meme coins gain traction
Growing legitimacy for meme coins coincides with significant institutional interest in digital assets.
Gemini’s report found that 39% of American investors now hold crypto via exchange-traded funds (ETFs).
These regulated vehicles bring added credibility to the space and create overlap with retail-driven segments like meme coins.
According to CoinGecko, the combined market capitalization of meme coins currently stands at $74.4 billion.
What began as parody has evolved into a meaningful vertical within the broader crypto market.
The synergy between viral meme content and more professional investment instruments suggests crypto adoption is maturing in both complexity and scale.
Political developments in the United States add further momentum. Former President Donald Trump has publicly shown support for cryptocurrencies and even proposed creating a strategic bitcoin reserve.
His position aligns with a broader regulatory shift that includes approval of spot Bitcoin ETFs.
Taken together, these factors contribute to an environment that supports both the entertainment value of meme coins and the financial rigor of traditional crypto investments.
Community engagement now drives meme coin valuation
Recent industry sentiment points to a growing seriousness around meme coin investing.
Justin Sun, Tron founder and advisor to Huobi Global, has commented on this trend, noting that success with meme coins requires more than mere virality—it demands genuine community engagement.
For Sun, this means looking beyond follower counts to measure actual participation and interest.
He described how meme coin projects need the same level of dedication and development as major crypto platforms to achieve long-term viability and impact.