As the price war heats up, Meme tokens and Dogecoin flood the market
Meme tokens and Dogecoin have always been an indispensable part of the ongoing bull market in the cryptocurrency market. Among the many tokens flooding the market, two of them are the historic meme coin Dogecoin (dog) And Shiba Inu (SHIB), gained the greatest attraction and popularity.
Recently, SHIB started to rise from $0.000028 to Set a record high The price on October 28 was 0.000086 USD. Since then, the token has cooled to 0.000052 USD. Despite this, the token has achieved a 195.5 percent growth in the past 30 days, and an annual growth rate of 72,954,679.8%.
This results in the token Listed briefly at No. 8 In the list of the top 10 cryptocurrencies by market capitalization, the token has fallen from the top 10 to the 11th place due to the price drop, with a market capitalization of approximately US$32 billion at the time of writing.
Such returns make the investment of tokens at Run It’s the “greatest transaction ever” because it was revealed that a crypto wallet address purchased $3,500 worth of SHIB tokens in August 2020, which was multiplied by Become worth more than 1.55 billion U.S. dollars At the peak of the market. Another wallet once had more than 13% of the total supply of more than 549 trillion tokens.However, this whale wallet Transferred USD 2.3 billion worth of SHIB tokens In four equal transactions on November 5, four different
These returns have attracted a lot of mainstream attention and revolve around tokens. After hitting a record high, SHIB also began to be adopted due to the utility of tokens.Despite the volatility, Adam Aron, CEO of AMC Cinemas, announced that the company is considering Add token as payment Used to purchase tickets. Le Bistrot d’Eleonore et Maxence is a bistro in Paris with Start accepting SHIB as payment.
The momentum of SHIB token continues to DOGE and investors begin Distribute their SHIB profits to DOGE, Causing the token to rise 44% in a day on October 28 and reach a 90-day high of $0.33. This rebound put the token in the 9th place among the top 10 cryptocurrencies by market capitalization. The token is currently trading at US$0.25, which is nearly 65% ??below the historical high of US$0.73 set on May 8 Stimulated by Elon Musk’s tweets Shilling coin. At the time of writing, the market value is close to $35 billion.
Cointelegraph talked with Johnny Lyu, CEO of KuCoin cryptocurrency exchange, on this phenomenon that has attracted the attention of many retail investors. He said: “In terms of trading volume on the exchange, the popular memecoin rushed into the top 10, and for a period of time ranked first, even surpassing Bitcoin. It can be said that become a permanent member of the top 10 clubs. The odds are quite high.”
So, if some of the more prominent memecoins can be said to be “successful”, can other high-risk tokens join their company at the top of the market capitalization chart, or are there only so many tokens?
Meme tokens and Dogecoin flood the market
After the popularity of Dogecoin has soared, a large number of Dogecoin and other memetic tokens have joined the industry. One of these tokens is SHIB, and its market capitalization has since reached the range of DOGE itself. The SHIB development team also developed another token called Doge Killer (LEASH). The token is currently changing hands at a price of US$3,256.73. Post The recent rate of return was 130.3%.
Another token that is trying to capitalize on the continued hype is Dogelon Mars, a token based on Tesla CEO Elon Musk and his love of space travel. October, the Tokens rose by more than 3,780%, With the listing OKEx with Crypto.com On October 29, it exceeded SHIB’s 850% increase.
More tokens were launched on various blockchain networks, and meme tokens were sent across the entire crypto ecosystem. For example, the Australian Safe Shephard (ASS) token is a Dogecoin based on Binance Smart Chain (BSC), and Samoyedcoin (SAMO) is a Dogecoin on the Solana network.
Lyu mentioned that “it seems that the older the cryptocurrency, the stronger its position. It is not easy for beginners to reach the top and occupy a place in the sun.” He added that two memecoins are enough to be in the top 10. Now, other meme coins have no chance. However, he commented, “But this is the beauty of cryptocurrency-anything can happen.”
Justin Trollip, a core team member of the decentralized exchange pangolin, told Cointelegraph that the short-term potential of all highly speculative meme tokens and Dogecoin across the blockchain is unpredictable:
“We are in a turbulent bull market, so speculative assets with huge upside tend to perform well. We are currently in the memetic cycle, so I think a lot of these tokens have upside. Again, it comes down to you as an investor Time frame. Personally, most of the people I have seen who make huge gains on meme tokens usually don’t make a profit and treat it as a long-term asset. I think this is a risky strategy.”
Several new meme tokens made impressive gains in October. SAMO rose by 2,925% in October to reach a market value of US$389 million. Hoge Finance’s HOGE surged by 2,923%, and its market value increased from US$15 million to 189.79 million US dollars in early October. However, this is not to say that these types of tokens will continue to issue such impressive rebounds.
Trollip added: “In order for these tokens to continue to perform well in the top 10 in the next few years, they need to surpass some impressive projects and the mature investor category of cryptocurrencies. I personally think they will be in It is surpassed in a longer time frame.” He also mentioned that the recent trend of meme tokens is entirely driven by speculation, and in some cases, even social media manipulation. However, as SafeMoon has seen, he believes that there are limits to where tokens are needed for marketing.
Social media shilling of Meme token
Social media plays an important role in the increasing adoption of these memetic tokens and Dogecoin. Elon Musk is one of the market forces, and it often indirectly affects the price movements of DOGE and Floki Inu (FLOKI) through sporadic Twitter posts.
Frocky frank puppy pic.twitter.com/xAr8T0Jfdf
-Elon Musk (@elonmusk) October 4, 2021
However, it is controversial that such activities that directly affect asset prices may be opposed by financial regulators such as the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In this regard, Lyu believes that “If Elon receives advertising fees from the creators of DOGE, then he should be held liable because he did not notify him that the message on Twitter was an advertisement. However, if Elon bought the tokens and wrote that he believed They, this is his right, and there is no criminal act.”
Financial regulatory agencies prohibit such activities in stocks, commodities, bonds and other assets in traditional financial markets. However, according to Trollip, opening the door to that world for crypto tokens will result in the loss of Satoshi Nakamoto’s original vision:
“Currently, traditional assets are still invested behind closed doors in a regulated manner. It’s not that it didn’t happen, but that within the framework, the winners have been determined in advance. I am really worried that you have begun to see this spread to cryptocurrencies. Under the current enthusiasm for getting rich, most people don’t care about Satoshi Nakamoto’s spirit, only money.”
In the long run, this attitude may be extremely detrimental to cryptocurrencies. This may reverse the progress the industry has made over the years in leading the financial world into a more dystopian future.
Nevertheless, new meme tokens and Dogecoin are entering the market every day, and retail investors tend to buy these new meme tokens and Dogecoin in order to replicate the past gains of DOGE and SHIB.In fact, the hype of Dogecoin has grown to such an extent that it is reported that even Increase The demand for real dogs.
Although the furry Shiba Inu puppy is definitely a good way to ensure the long-term happiness of the owner, the meme currency is far from a definite bet and should be traded at your own risk. Speculative bets on low-market tokens may not be rewarded, as are investments in mature Dogecoin, as its upside and social media sentiment may have reached its highest level.