Dogecoin Killers Are Surpassing Bitcoin, Ethereum, BNB, XRP, and Cardano in Price Gains
Dogecoin, the meme-based cryptocurrency that has soared in value since the start of the year, is losing momentum to sparkling new memecoin contenders.
The dogecoin price, which has increased by almost 10,000 percent year over year, has suffered in recent months as Tesla billionaire Elon Musk, who earlier this year championed the Shiba Inu dog-based bitcoin competitor, has remained relatively silent.
Now, the skyrocketing price of meme coin rival shiba inu, dubbed the “dogecoin killer,” has inspired interest in even smaller dogecoin competitors—with several of them surging up the cryptocurrency price charts.
Shiba inu, which was launched in May to capitalize on the massive dogecoin and cryptocurrency rally that had pushed the crypto market well beyond previous all-time highs, began climbing over the weekend after Musk tweeted a picture of his puppy, a Shiba Inu named Floki—the breed of dog used by both the “dogecoin killer” and dogecoin itself.
Musk captioned the shot, “Floki Frunkpuppy.” Musk’s tweet elicited the expected outpouring of responses, with one prominent cryptocurrency meme account replying, “Dogecoin to the moon.”
While dogecoin, which is now the ninth-largest cryptocurrency in terms of value with a market capitalization of $32 billion, witnessed a modest increase in price following Musk’s tweet, shiba inu’s price has soared almost 300 percent. Shiba inu has surpassed major cryptocurrencies such as litecoin, chainlink, and Binance’s stable coin BUSD to become the 12th largest cryptocurrency by market capitalization. However, several bitcoin and cryptocurrency market observers have cautioned that the shiba inu surge is unlikely to last.
“I honestly believe we’re witnessing a similar surge to the one we witnessed with dogecoin,” Eric Demuth, co-founder and CEO of Vienna-based crypto trading platform Bitpanda, told CoinDesk via email.
“These new coins are heavily influenced by community, excitement, and fun. On the other hand, they are not utilizing new technology or resolving issues in the way that bitcoin or ethereum do. Nonetheless, shiba inu and others remain significant in today’s market since they reflect the new, community-driven finance trend, which is why we will be adding several of them to Bitpanda in the near future.”
“While it is a significant driver of its growth, shib’s reputation as a meme coin may very well be its downfall,” Don Guo, CEO of trading technology startup Broctagon, said in emailed remarks, adding that he feels it is “impossible” for shiba inu to ever hit $1.
“As is the case with other meme coins, shib’s price movement is highly influenced by influencer opinion. This has been seen several times throughout doge’s price fluctuations—a single tweet from Elon Musk may alter the markets practically instantly. While it has largely worked in favor of shib thus far, it is not difficult to envisage a future in which the inverse occurs. This ambiguity, along with the fact that shib investors are primarily speculative in character, adds significantly to the market’s volatility and consequent mistrust.”
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