- Dog-themed cryptocurrencies break into a rally, proponents debate whether this implies an end to the ongoing Bitcoin bull run.
- Shiba Inu and Dogecoin are neck to neck in market capitalization.
- Both the Shiba-Inu-themed cryptocurrencies posted 28% and 22% daily gains, respectively.
- The crypto dogfight is on as capital is pulled out of Bitcoin and altcoins to rotate into dog coins SHIB, DOGE, FLOKI and SAMO.
Cryptocurrency analysts note capital rotation from top cryptos to dog coins as the market gets overheated. The top three cryptocurrencies by market capitalization have suffered a drop in price as dog coins capture the attention of retail traders.
Dog coins offer double-digit gains to traders as Bitcoin rally cools down
A recent study conducted across 22 countries by an Australian crypto survey agency revealed more Dogecoin holders in the US than Bitcoin and Ethereum. The survey results imply that Dogecoin's adoption among investors and traders in the US is nearly twice as much as the global average.
The interest in dog-themed currencies and memecoins is not a recent one. Historically, when capital rotates out of mainstream cryptocurrencies with a large market capitalization (Bitcoin, Ethereum and top altcoins), it flows into memecoins and signals a cooling-off period for the ongoing bull run.
Alex Kruger, cryptocurrency analyst and economist, commented on the recent success of SHIB, the Dogecoin-killer.
Shiba's success tells you three things:
— Alex Krüger (@krugermacro) October 27, 2021
#1 everything is possible with hard work and perseverance
#2 people loves dogs & memes
#3 money will chase anything that moves (this applies to both dumb and smart money)
Dylan LeClair, co-founder of 21stParadigm, has criticized traders aping into dog coin rallies and shared his concerns in a recent tweet:
“something something stupid maxi”
— Dylan LeClair (@DylanLeClair_) October 27, 2021
Guys, I sincerely have no problem with you buying shitcoins. Seriously, have it.
You know what I do care about? When a friend or family member with no savings or assets wants to “YOLO” into dog tokens, because they saw an ad on Snapchat. ♂️♂️
The number of Shiba Inu holders surpassed 800,000 overnight. SHIB added 30,000 new holders within a single day with its massive rally. More investors have turned to dog coins, feeding the DOGE vs. SHIB rivalry that started with Shiba Inu's launch in August 2020.
A mysterious address purchased $3,400 worth of SHIB (in exchange for wrapped Ethereum WETH) when the memecoin launched, and the holdings are worth over $1.55 billion. The wallet kept purchasing SHIB several times; the $3,400 purchase was the largest, and total wallet holdings are now worth $5.63 billion.
It remains to be seen whether this whale decides to sell their holdings and whether the SHIB markets have enough liquidity to absorb a sale of this volume.
Mysterious Shiba Inu wallet that purchased $3,400 worth of SHIB tokens in August 2020.
Less popular dog coins FLOKI and SAMO posted thriple-digit gains of 125% and 113% over the past 24 hours, respectively.
Pseudonymous cryptocurrency analyst and trader @LilMoonLambo has predicted that the BTC top for the year is in. The analyst considers a dog coin rally an indication of the ending Bitcoin bull run.
THE $BTC TOP FOR THE YEAR IS IN
— LilMoonLambo (@LilMoonLambo) October 27, 2021
DUMP IT ALL AND ENJOY THE REST OF 2021
THE BULL RUN IS OVER
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.