Dogecoin poised to achieve its target
Shiba Inu’s (SHIB) market capitalization is quickly approaching that of Dogecoin (DOGE), with SHIB currently sitting at around $20.5 billion, just 17% below DOGE’s market cap of $24.1 billion.
Traders are optimistic about the potential of Shiba Inu. In the past week, meme cryptocurrencies have experienced a significant surge, and Shiba Inu, often referred to as the “Dogecoin Killer,” has climbed several positions in the top 100 rankings. It is now just below its rival, DOGE.
Over the past seven days, Shiba Inu has seen a 62% increase in price and a 280% surge over the past month. In contrast, Dogecoin has experienced a 19% price increase in the last week and a 109% surge over the month.
On October 29, 2021, Shiba Inu experienced a remarkable surge, reaching over ten times its previous value and resulting in a market capitalization of $41 billion. Although its market capitalization has declined significantly since then to $5.97 billion as of December 8, 2023, Shiba Inu continues to hold a top-ten position among meme cryptocurrencies, trailing only behind Dogecoin.
In January 2023, the leaders of the Shiba Inu community unveiled Shibarium, a layer two blockchain designed to operate on top of Ethereum. Its goals include reducing congestion, integrating staking into its ecosystem, lowering gas fees, and establishing a framework for decentralized applications and Web 3 expansion.
According to CoinGecko’s data, Shiba Inu (SHIB) is currently trading at $0.00003472 and is ranked 11th in the global cryptocurrency market.
Meanwhile, Dogecoin is priced at $0.168, with a 24-hour trading volume of $3.2 billion. Over the past year, Dogecoin has consistently traded within a narrow range of $0.08 to $0.10, indicating a period of little fluctuation.
On February 6, data analytics platform Santiment revealed that Dogecoin’s wallets experienced unprecedented growth, with 413,800 new wallets added in just two weeks. Most of these wallets held between 0.001 to 1 DOGE.
The market sentiment suggests the possibility of a retest of the $0.20 resistance level or a fallback to the $0.12 support level, depending on buyer behavior.
Elon Musk is credited for the excitement surrounding Dogecoin. The Tesla CEO and X owner’s comments on the coin in tweets have led to price spikes and increased public awareness. Musk has also shown interest in funding Dogecoin’s development since 2019 to enhance its features and establish it as a prominent cryptocurrency.
However, Musk’s involvement has not been without controversy. In 2022, he faced a $258 billion lawsuit for allegedly manipulating Dogecoin’s price through his social media presence and public statements.
The price movement of Dogecoin reflects patterns seen in previous bull markets, indicating potential growth opportunities in the future. Despite varying short-term forecasts, analysts like Ali Martinez remain optimistic about Dogecoin’s potential for significant gains, with projections reaching as high as $1.70 and beyond.
The current hype surrounding meme coins reflects a renewed interest in community-driven narratives and decentralization within the cryptocurrency space. This trend has extended to the Bitcoin blockchain through the BRC-20 token standard, resulting in higher network fees due to increased trading activity.
The BRC-20 token standard was introduced in March 2022 and has experienced significant growth, with a market capitalization of $120 million and over 8,500 tokens created. Unlike Ethereum’s ERC-20, BRC-20 tokens operate without smart contracts and instead use the Ordinals protocol on the Bitcoin blockchain for token issuance and trading.
The surge in BRC-20 transactions has led to a notable increase in transaction fees, benefiting miners and impacting network congestion on both the Bitcoin (BTC) and Ethereum (ETH) blockchains.
While the proliferation of meme coins on the Bitcoin blockchain showcases innovation in the crypto realm, it also highlights the challenges posed by transaction fees and network strain during the meme coin frenzy.
